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This week: "Unfair and Broken?", the Treasury Committee doesn't hold back on student loans

There's blunt, and then there's calling your own government's flagship policy "unfair and broken" in a select committee report title. That's what the Treasury Select Committee did earlier this month, and it didn't land softly.

 

Universities UK's response, from chief exec Vivienne Stern, agreed with the core argument: that the cost of a degree should be split more evenly between graduates and the state, since both benefit. But then came the sting, Stern pointed out that teaching grants per student have fallen 24% in real terms between 2012-13 and 2025-26, and that the timing was rough, given the government had announced yet another cut to teaching grant funding the day before the report landed.

 

If you're in a professional services role wondering why this matters, here's the honest answer: it's the thing sitting behind most of the "efficiency reviews" and restructures you've seen this year. Teaching grants pay for a huge chunk of what universities run on. When that funding keeps shrinking while costs rise, something gives, and professional services teams tend to be first in line when institutions look for savings.

 

There's also a student-facing angle worth flagging if you work near admissions or student finance. The report underlines how important it is that prospective students get clear, transparent information about repayment terms, and how those terms might change down the line. Given how often loan terms have shifted recently, that's exactly the kind of question professional services teams end up fielding at open days.

 

Nothing's resolved yet; reports like this tend to simmer rather than trigger instant change. But "unfair and broken" is a strong phrase to have on the parliamentary record.

 

References:

  • Universities UK, Universities UK responds to the Treasury Select Committee's report on student loans (7 July 2026)