UCEA comment on the Government’s response to the Education Select Committee’s recommendations on HE funding
22 July 2026
Responding to the Government’s response to the Education Select Committee’s inquiry Higher Education and Funding: Threat of Insolvency and International Students, Raj Jethwa, UCEA’s Chief Executive said:
“We welcome the Government’s rejection of Education Select Committee recommendations on the use of wholly owned subsidiaries to address financial challenges created by the Teacher Pensions’ Scheme (TPS).
“We also welcome the Government’s recognition that HE institutions are independent organisations which may choose to pursue such arrangements operating within the framework of existing employment and pensions legislation.
“The recent announcement of a reduction in employer contributions from 1 April 2027 is positive news which will provide welcome short-term financial relief for our member institutions that have a statutory obligation to offer the TPS.
“The fundamental issue is to make the financial independence of HE institutions a reality by providing them with the flexibility to offer staff alternative pension arrangements. This would avoid the need for employers to consider the use of subsidiaries.”
Notes
The full Government Response can be found at https://publications.parliament.uk/pa/cm5902/cmselect/cmeduc/566/report.html
ENDS
For further information: Please contact, Marc Whittaker, Public Affairs and Events Manager (m.whittaker@ucea.ac.uk), Armelle Griffin, Communications Officer (a.griffin@ucea.ac.uk) or Andy Fryer, Head of Communications and Membership (a.fryer@ucea.ac.uk)
22 July 2026
Responding to the Government’s response to the Education Select Committee’s inquiry Higher Education and Funding: Threat of Insolvency and International Students, Raj Jethwa, UCEA’s Chief Executive said:
“We welcome the Government’s rejection of Education Select Committee recommendations on the use of wholly owned subsidiaries to address financial challenges created by the Teacher Pensions’ Scheme (TPS).
“We also welcome the Government’s recognition that HE institutions are independent organisations which may choose to pursue such arrangements operating within the framework of existing employment and pensions legislation.
“The recent announcement of a reduction in employer contributions from 1 April 2027 is positive news which will provide welcome short-term financial relief for our member institutions that have a statutory obligation to offer the TPS.
“The fundamental issue is to make the financial independence of HE institutions a reality by providing them with the flexibility to offer staff alternative pension arrangements. This would avoid the need for employers to consider the use of subsidiaries.”
Notes
The full Government Response can be found at https://publications.parliament.uk/pa/cm5902/cmselect/cmeduc/566/report.html
ENDS
For further information: Please contact, Marc Whittaker, Public Affairs and Events Manager (m.whittaker@ucea.ac.uk), Armelle Griffin, Communications Officer (a.griffin@ucea.ac.uk) or Andy Fryer, Head of Communications and Membership (a.fryer@ucea.ac.uk)
