Higher education reform and the Review of Post-18 Education and Funding
In 2018, the Government launched a Review of Post-18 Education and Funding, which looked at how to ensure that post-18 education gives everyone a genuine choice between high-quality technical and academic routes, that students and taxpayers are getting value for money and that employers can access the skilled workforce they need.
	The Government’s interim conclusion to the Review, in 2021, addressed some of its key recommendations. The Government has delivered on several of these recommendations, including a new level 3 entitlement, investment in the further education estate and increases to 16–19 funding. Measures in the Act take further steps towards the implementation of the report’s recommendations. These include introducing a lifelong loan entitlement from 2025, so that learning can be more flexible and strengthening the link between qualifications and employer-led standards.
	In February 2022, the Government brought the Review of Post-18 Education and Funding to a conclusion by setting out reforms to the student loan system to make it fairer for students and taxpayers, while underpinning the sustainability of our world-class higher education system. As part of the reforms, the Government is delivering better value for students by continuing the freeze in maximum tuition fee caps up to academic year 2024/25 and, from September 2023, reducing the interest rates charged on student loans for new borrowers.
	The Government is backing this up with nearly £900 million of further investment in higher education over the next three years (2022/23–2024/25). This includes a new national state scholarship to support high-achieving disadvantaged students in higher education, further education or in an apprenticeship. This includes the largest increase in government funding for the higher education sector to support students and teaching in over a decade.
	It is right that we have a sustainable student finance system that is fair to students and fair to taxpayers. The significant reduction in interest rates for new student loan borrowers is enabled by a repayment threshold of £25,000, rising with inflation from April 2027 onwards, and a loan term of 40 years. The repayment threshold for existing (post-2012) student loans will remain at its current level of £27,295 until financial year 2024-25 and rise with inflation from April 2025 onwards. The Government will keep the terms of student loans under review to ensure the system remains sustainable.
	The Government believes that higher education is not the only pathway to success and that further education can often be a better choice for some students. We want to make sure our entire post-16 education system is delivering quality outcomes for students throughout their lives.
	As such, a consultation was launched in February 2022 on the introduction of a lifelong loan entitlement from 2025. This will conclude in May 2022 and seeks views on ambition, objectives and coverage, together with aspects such as modular study, maintenance support, quality provision, credit transfer and previous study restrictions. The Government will consider responses carefully and publish its response in due course.