University Alliance CEO Vanessa Wilson has responded to the government’s latest budget measures impacting skills and higher education:
“Today, the government announced a budget to secure the economy: with public services and investment at its heart.
On Growth and Skills Levy
We welcome the government’s commitment to support young people who are not in education, employment, or training (NEETs). Making apprenticeship training completely free for SMEs for under-25s is a positive move, but much will depend on the detail as to how the Growth and Skills Levy will be allocated and at what levels.
However, the government’s recent direction of travel has prioritised entry-level skills and underplayed the importance of higher-level apprenticeships. With 71% of jobs projected to be filled by those already in the workforce by 2035, economic growth will depend on developing advanced skills, not just entry-level interventions.
For skills to be unleashed, we need to focus on more than just the NEETs. We urge policymakers to complement these initiatives on NEETs with strengthened investment in higher-level apprenticeships and advanced skills development.
On the International Student Levy
“International students make an enormous contribution to our economy and cultural life, and any levy risks denting this success story, even if the proceeds are to be spent on good causes like student maintenance support.
Despite making allowances for the first 220 students, the government’s proposed flat fee of £925 a year per international student will hit our universities hard.
Ahead of its expected implementation in 2028, we would like to see a full assessment of how the levy will impact higher education institutions. Universities are operating in an environment of financial uncertainty, and any major policy change must be accompanied by clear evidence of its implications for institutional budgets and their long-term sustainability.
Alongside this, the government must explore further ways to soften the blow for professional and technical universities, such as cutting costly regulation and reviewing their participation in the Teachers’ Pension Scheme, which some universities are legally obliged to offer at increasingly expensive contribution rates.”
