Financial sustainability of the higher education sector in England
Public Accounts Committee
Closed
Inquiry
Higher education providers can have a fundamental influence on the future lives of graduates, with consequences for the national economy. Providers are independent bodies, and the sector’s financial sustainability is heavily dependent on student fee income, top-up grant funding, and government research funding. Providers face a range of financial pressures, …
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9
Recommendations
17
Conclusions
1
Report
1
Oral session
2
Letters
1
Event
Activity timeline 6 events
8 Sep
2022
2022
2 Sep
2022
2022
15 Jun
2022
2022
21 Apr
2022
2022
21 Mar
2022
2022
21 Mar
2022
2022
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
21 Mar 2022
View on parliament.uk
Financial sustainability of the higher education sector in England
Anne Spinali · Department for Education
Nicola Dandridge · Office for Students
Susan Acland-Hood · The Department for Education
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Eighth Report - Financial sustainability of the higher education… | HC 257 | 15 Jun 2022 | 26 | Responded |
Recommendations & Conclusions
9 results
4
Recommendation
Acknowledged
Eighth Report - Financial sustaina…
We are concerned that the financial sustainability of some providers is being put at risk...
We are concerned that the financial sustainability of some providers is being put at risk by their heavy dependence on their ability to continue growing overseas student numbers. Many providers are already highly dependent on cross-subsidy to make up deficits …
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Government Response
The government agrees with the Committee’s recommendation and states the financial sustainability of the higher education sector depends on the continuing contribution made by income from overseas students.
HM Treasury
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6
Recommendation
Acknowledged
Eighth Report - Financial sustaina…
The Department failed to adequately assess the current and future financial impacts on providers of...
The Department failed to adequately assess the current and future financial impacts on providers of disruption to A-level assessments. The use of locally assessed grades in place of A-level exams during the COVID-19 pandemic led to substantial grade inflation in …
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Government Response
The government agrees with the Committee’s recommendation and has undertaken careful monitoring of applications and providers’ offer- making in the 2022 admissions cycle.
HM Treasury
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1
Conclusion
Acknowledged
Eighth Report - Financial sustaina…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Education (the Department) and the Office for Students (the OfS) on the financial sustainability of the higher education sector in England.1
Government Response
The government acknowledges the report and states that the response is the government’s response to the Committee’s report.
HM Treasury
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10
Conclusion
Acknowledged
Eighth Report - Financial sustaina…
In addition to setting higher education policy, the Department is responsible for the overall regulatory...
In addition to setting higher education policy, the Department is responsible for the overall regulatory framework for the sector.19 It holds the OfS to account through quarterly performance reviews with the OfS’s leaders and has regular discussions about the performance …
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Government Response
The government agrees with the Committee’s recommendation, with the OfS concluding the review of its key performance measures, with a view to these being published by September 2022.
HM Treasury
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14
Conclusion
Acknowledged
Eighth Report - Financial sustaina…
The medium- and long-term financial sustainability of some providers is heavily dependent on continued growth...
The medium- and long-term financial sustainability of some providers is heavily dependent on continued growth in student numbers, particularly overseas students. In 2018, providers forecasted that the number of non-EU students would grow by 29% between the 2019/20 and 2024/25 …
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Government Response
The government agrees with the Committee’s recommendation and states the financial sustainability of the higher education sector depends on the continuing contribution made by income from overseas students.
HM Treasury
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18
Conclusion
Acknowledged
Eighth Report - Financial sustaina…
During the COVID-19 pandemic, the government moved to a system of locally- assessed grades in...
During the COVID-19 pandemic, the government moved to a system of locally- assessed grades in place of the usual A-level examinations. This led to significant grade inflation in 2020 and 2021 and meant that many more students than expected were …
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Government Response
The government agrees with the Committee’s recommendation and has undertaken careful monitoring of applications and providers’ offer- making in the 2022 admissions cycle.
HM Treasury
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19
Conclusion
Acknowledged
Eighth Report - Financial sustaina…
As most degree courses last three or four years, there is an ongoing negative impact...
As most degree courses last three or four years, there is an ongoing negative impact on the income of providers who are unable to recruit enough students to match their forecast numbers.35 Oversubscribed providers can also face adverse financial consequences …
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Government Response
The government agrees with the Committee’s recommendation and has undertaken careful monitoring of applications and providers’ offer- making in the 2022 admissions cycle.
HM Treasury
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20
Conclusion
Acknowledged
Eighth Report - Financial sustaina…
The Department told us it had not modelled the impact on providers of grade inflation...
The Department told us it had not modelled the impact on providers of grade inflation in 2020 because nobody had anticipated the last-minute decision to use locally assessed grades. For the 2020/21 academic year, it provided an additional £10 million …
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Government Response
The government agrees with the Committee’s recommendation and has undertaken careful monitoring of applications and providers’ offer- making in the 2022 admissions cycle.
HM Treasury
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21
Conclusion
Acknowledged
Eighth Report - Financial sustaina…
As a condition of registration, the OfS requires each higher education provider to have in...
As a condition of registration, the OfS requires each higher education provider to have in place and publish a student protection plan setting out what it would do to safeguard students’ interests—such as by making arrangements for continuity of study— …
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Government Response
The OfS introduced a new registration condition in April 2021 to strengthen its ability to ensure the rigour of a provider’s plans to protect students against the risk of the provider ceasing to deliver higher education and intends to begin discussions with the sector to update requirements where appropriate.
HM Treasury
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Correspondence 2 letters
8 Sep 2022
Correspondence from Susan Lapworth, Interim Chief Executive, Office for Students, re Financial sustainability of the higher education sector in England, dated 27 July 2022
Parliament page
21 Apr 2022
Correspondence from Susan Acland-Hood, Permanent Secretary, Department for Education, re PAC hearing on the financial sustainability of higher education providers 21 March 2022, dated 4 April 2022
Parliament page