The Open University in Ireland response to The Department for the Economy’s Tuition Fee Loan consultation

Response to the 2025 Department for the Economy Consultation on the Postgraduate Tuition Fee Loan 

Submitted by: The Open University in Ireland
Date: November 2025

Q1. Do you agree that Option 4 (increase the loan to £10,000) offers the best solution for funding postgraduate tuition loans?

Yes 

If you answered ‘No’ to question 1 which option do you prefer? (Options 1/2/3/unsure)

N/A

Q3. Are there alternative options that should be considered?

Yes.

A higher loan cap that accommodates modular and flexible study would better support Northern Ireland’s diverse learner population, allowing individuals to progress at a pace suited to their personal and professional circumstances. To preserve the real value of financial support, the Department should also consider introducing annual inflationary adjustments rather than relying on the current three-year review cycle, which risks widening the gap between tuition fees and the loan amount.

Although maintenance support falls outside the immediate scope of this consultation, the Minister’s Economic Vision identifies higher-level and advanced qualifications as critical to driving innovation, productivity and inclusive economic growth. Expanding access to postgraduate study through maintenance provision for postgraduate students will strengthen the regional skills base in priority sectors such as digital transformation, health and green technologies. This approach would also reinforce Northern Ireland’s commitment to lifelong learning and the development of an inclusive, skills-driven economy.

4. How would increasing the loan amount affect access for students from lower-income backgrounds?

1. It would make it easier to participate in postgraduate study
2. It would make it harder to participate in postgraduate study
3. It will make no difference
4. It would make it easier to participate in postgraduate study

It would make it easier to participate in postgraduate study

The Open University supports increasing the Postgraduate Tuition Fee Loan (PGTFL) to £10,000. This measure will help address the current shortfall between postgraduate tuition fees and available loan funding. For example, in 2025/26, OU postgraduate course fees range from approximately £7,900 to £16,325, excluding the MBA which is priced up to £22,000. Increasing the loan cap to £10,000 would ensure that 23 of the Open University’s 32 postgraduate qualifications are fully, or almost fully, covered by the loan. This represents a significant improvement on previous years, when no postgraduate courses were entirely covered, and would make postgraduate study more financially viable for many learners by narrowing the gap between tuition costs and available finance.

However, the benefits of this change are unlikely to be distributed evenly across all groups of learners. Students who are already in work, who can manage remaining costs, or who are enrolled on programmes priced closer to the new loan ceiling are expected to benefit most. For those from lower-income backgrounds or with additional responsibilities, such as caring or managing a disability, a higher tuition loan may still be insufficient to enable participation without further support for living costs. 

Although maintenance support is not within the scope of this consultation, the absence of such provision in Northern Ireland differs from funding arrangements in other jurisdictions of the UK, where students can access varying forms of maintenance loans or grants alongside tuition support. This disparity places Northern Ireland learners at a disadvantage and may limit the region’s ability to achieve its wider economic and social policy goals, particularly those set out in the Economy Minister’s Economic Vision, which prioritises inclusion, skills development and productivity.

The Open University recommends that the Department consider future options for introducing maintenance support for postgraduate learners, whether through targeted loans or means-tested grants, to create a more equitable funding landscape. In parallel, the Department should also adopt a robust, evidence-based evaluation framework to assess the impact of postgraduate funding reforms on participation and outcomes. The Welsh Government’s Diamond Reforms Student Finance Evaluation Plan (2024) provides a strong precedent for this approach. It demonstrates the value of systematically evaluating the effects of funding changes on widening access, part-time participation and postgraduate study. A similar model in Northern Ireland would allow the Department to monitor outcomes and measure whether increased loan levels effectively improve access and participation.

5. How important is it that NI’s postgraduate support is competitive with England, Scotland and Wales?

1. Very important
   1. Important
   2. Unimportant
   3. Very unimportant
   4. Unsure 

Please explain your answer.

It is very important that Northern Ireland’s postgraduate support remains competitive with the rest of the United Kingdom. In a small and open economy, where the loss of skilled graduates contributes to persistent skills gaps, ensuring parity of opportunity is essential to retaining and developing talent. Enhanced financial support for postgraduate learners is particularly critical to meeting regional skills needs, supporting lifelong learning and sustaining the growth ambitions of the Department for the Economy’s Economic Vision.

The Open University Business Barometer 2025 reports nearly half (48 per cent) of employers in Northern Ireland report a skills shortage, with 47 per cent expecting this to worsen over the next five years. Employers cite limited access to relevant training as a key factor. These shortages are most pronounced in sectors such as health, digital and engineering[1].

The Economic Vision identifies talent retention and the development of advanced and specialised skills as central to Northern Ireland’s long-term competitiveness. Postgraduate learners, particularly those studying part-time or while in employment, are central to achieving these outcomes. Strengthening postgraduate funding will help deliver these outcomes by retaining graduates who might otherwise leave the region, building leadership and innovation capacity, and ensuring that Northern Ireland remains competitive in the UK and global skills landscape. 

Q6. Do you have additional comments on any of the options or issues considered in this consultation?

The Open University in Ireland welcomes the proposed increase to the Postgraduate Tuition Fee Loan (PGTFL) and the Department’s commitment to review the scheme regularly. This is a timely and necessary reform that will help improve affordability and participation in postgraduate education.

The Open University’s mission is to be open to people, places, methods and ideas. In Northern Ireland, this translates into providing flexible, high-quality higher education opportunities for learners balancing study with work, caring responsibilities or other commitments. The OU is the largest provider of flexible part-time higher education in Northern Ireland, serving learners in every constituency.

 To maximise the long-term benefits of this reform, the Department should take a strategic view of postgraduate education as part of Northern Ireland’s wider skills and innovation system. Postgraduate learners play a crucial role in meeting advanced and emerging skills needs, particularly in areas central to the Minister’s Economic Vision such as green innovation, digital transformation, and leadership. A more integrated approach between higher education funding, skills policy and employer engagement would ensure postgraduate provision continues to deliver high-value outcomes for individuals and the economy.