The UK’s 2024 Autumn Budget, delivered by the Chancellor of the Exchequer, was closely watched by the higher education sector. With rising financial pressures on universities and students alike, many hoped for substantial reforms to tuition fees, financial aid, and structural support for universities. However, while the Budget included few headline changes directly aimed at university funding, it did signal ongoing support for key initiatives like the Lifelong Learning Entitlement (LLE) and research funding, both of which could support and shape the future of online learning in higher education.
Lifelong Learning Entitlement (LLE): A Potential Boost for Flexible Learning
One of the most relevant aspects of the Budget for online learning is the government’s stated commitment to the LLE. Now pushed back to to launch in 2026/2027 for couses stating in 2027, the LLE aims to provide individuals with funding equivalent to four years of post-secondary education, which they can access at any point in their life. This flexibility makes it ideal for those who may want to upskill or reskill mid-career. Dr. Kate Wicklow from GuildHE highlights that the LLE could unlock a new level of accessibility in higher education, especially for those who may have previously faced barriers due to time, cost, or family commitments (link).
I have written before about the limitations of the LLE, and that postgraduate, and online students in particular look to loose out. The LLE will be be made available in the first instance for those looking to fund higher technical qualifications (HTQs); technical level 4 and level 5 advanced learner loan transfer qualifications; and qualifications approved through the new LLE at level 4 and level 5. With the slow progression of this policy, expanding it to cover level 7 feels like a distant prospect. However, the recent release of a Department for Education policy paper signals the government’s commitment to the Lifelong Loan Entitlement (LLE) and ongoing efforts to finalise its framework before launch. This presents a valuable chance for us, as a sector, to collaborate with the government, sharing insights on how the LLE can best promote learner engagement, help people gain new skills, and inspire fresh approaches in higher education.
What the introduction of the LLE will offer is a promising framework for online learning. As learners will be able to pick modules or courses over time rather than enrolling in traditional degree structures, UK universities have a clear opportunity to offer modular, fully online degree programs tailored to the needs of these learners. The LLE’s flexibility aligns well with online learning, which is already designed to cater to diverse schedules and can easily support modular or stackable credentials.
Research Funding: Support for Innovation in Online Education
The Budget also provided a significant boost to research funding, securing £20 billion for growth sectors, including engineering, biotechnology, and medical science. This commitment to research funding, particularly in technology-focused areas, could indirectly benefit online education by fostering innovations in digital learning platforms, virtual labs, and other technology-driven educational tools. With protected funding for research councils, universities have the potential to explore new learning technologies, such as AI-driven adaptive learning or immersive simulations that could enrich the online learning experience. In particular this could provide an opportunity for institutions to expand their online portfolios to deliver high-quality online education in highly technical and specialised fields,
Challenges Ahead: Financial Pressures and Delayed Reforms
While the Budget did address research and LLE funding, it largely sidestepped the immediate financial concerns facing universities. There were no major announcements on tuition fee increases or enhanced public funding for higher education. Additionally, a planned 1.2% increase in employer National Insurance contributions will add an estimated £372 million to the sector’s payroll expenses, impacting universities’ ability to manage existing staff and potentially limiting resources for new online program initiatives (UCEA).
For fully online degree programs, these financial pressures mean that universities may struggle to invest in new digital infrastructure, hire specialist staff, or develop engaging content for online platforms. Without increased funding, universities will need to balance their budgets carefully, which could delay their ability to scale high-quality online programs. In this context it is possible we will see an increase in split revenue public-private partnerships with Online Programme Management (OPM) companies, who can provide investment and resource upfront to enable Universities to diversity their revenue via the online learner market.
Conclusion: A Mixed Bag for Online Learning
While the 2024 UK Budget didn’t deliver the sweeping changes that some hoped for, it offered an indication that flexible, lifelong learning remains a government priority. The LLE, coupled with secure research funding, could provide the foundation needed for universities to develop and expand their fully online degree programs. However, without immediate financial relief, many institutions may face challenges scaling their online offerings in the short term. Higher education funding remains a pressing issue, and it is possible that broader reforms could be introduced in the next fiscal cycle or in Labour’s 2025 Spending Review. This could present an opportunity for universities to advocate for further support specifically tailored to online learning infrastructure, course development, and digital student services.
As universities prepare for a potential overhaul of higher education funding, they will need to carefully strategise to make the most of available resources while advocating for further support. Fully online programs stand to benefit from the Budget’s focus on lifelong learning and innovation, but institutions must navigate the financial pressures ahead to ensure these programs meet the needs of a changing student demographic.
Kate Lindsay Blogs 