Higher Education and Funding: Threat of Insolvency and International Students

Education Committee Open Inquiry
Opened: 12 Jun 2025 Parliament page
The UK’s higher education sector is in trouble. Dozens of universities are making redundancies and cuts to courses, trying to stay afloat amid uncertainty over where their money is coming from. The Education Committee will look under the bonnet at what is going on. In a focused single evidence session … Read more
36 Recommendations
25 Conclusions
1 Report
3 Oral sessions
11 Letters
3 Events
Activity timeline 16 events
22 Jul
2026
Report published
12 May
2026
Report published
14 Apr
2026
Correspondence
24 Mar
2026
Correspondence
13 Jan
2026
Correspondence
9 Dec
2025
Correspondence
25 Nov
2025
Oral evidence
21 Oct
2025
Oral evidence
3 Jun
2025
Correspondence
3 Jun
2025
Correspondence
20 May
2025
Correspondence
7 May
2025
Correspondence
Oral evidence sessions 3 sessions
25 Nov 2025
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Higher Education and Funding: Threat of Insolvency and International Students
Patrick Curry · Department for Education Susan Lapworth · Office for Students The Rt Hon. the Baroness Smith of Malvern · The Department for Education
21 Oct 2025
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Higher Education and Funding: Threat of Insolvency and International Students
Adam Leach · Civic University Network Carol Prokopyszyn · British Universities Finance Directors Group Dr David Pilsbury · International Higher Education Commission Mr Neil Smyth · Mills and Reeve LLP Mrs Dani Payne · Social Market Foundation Professor Brian Bell · Migration Advisory Committee Rachel MacSween · IDP Education UK and Ireland Vivienne Stern MBE · Universities UK
8 Apr 2025
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Higher Education and Funding
Alex Stanley · National Union of Students Andrew Bird · British Universities' International Liaison Association Dr Hollie Chandler · The Russell Group Jo Grady · University College Union (UCU) Mr Raj Jethwa · Universities and Colleges Employers Association (UCEA) Professor Dame Jessica Corner · UK Research and Innovation Professor Malcolm Press CBE · Universities UK Rachel Hewitt · MillionPlus, The Association for Modern Universities Sir Philip Augar · Post-18 Education and Funding Review
Title HC No. Published Items Response
9th Report - Higher Education and Funding: Threat of Insolvency … HC 807 12 May 2026 61 Responded
Recommendations & Conclusions
11 results
Clear
3 Recommendation Accepted in Part
9th Report - Higher Education and …
The Government should confirm its commitment to meet the 80% full economic costs of research,...
The Government should confirm its commitment to meet the 80% full economic costs of research, its timetable for when it expects to meet 80% full economic costs, and its assessment of the long-term sustainability of 109 this model given the … Read more
Government Response
The government confirms its commitment to meeting 80% of research's full economic costs and believes the model is sustainable, but cannot commit to a timeline for increasing cost recovery due to factors driven by independent institutions and other funders.
Department for Education
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8 Recommendation Accepted in Part
9th Report - Higher Education and …
The Government should outline the measures it and the Office for Students are taking to...
The Government should outline the measures it and the Office for Students are taking to ensure the sustainability of higher education institutions’ borrowing, to work with creditors to ensure they recognise the benefit of avoiding an institution closing, and measures … Read more
Government Response
The government partially accepts the recommendation, stating it will continue to engage with providers, the Office for Students, and lenders on financial risks, and keep under review a potential role for the OfS in agreeing high borrowing. However, it rejects changing the tuition fee payment schedule due to negative implications for students and public debt.
Department for Education
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14 Conclusion Accepted in Part
9th Report - Higher Education and …
The Government has been welcoming of transnational education, but in such a tumultuous global situation...
The Government has been welcoming of transnational education, but in such a tumultuous global situation establishing campuses abroad also carries financial risks. (Recommendation, Paragraph 94)
Government Response
The government partially accepts the conclusion, recognizing providers' responsibility for managing finances. It commits to promoting high-quality transnational education, working with the Office for Students to set clearer expectations for international risk management, raising awareness, and investing £3m to support the sector in managing these risks.
Department for Education
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15 Recommendation Accepted in Part
9th Report - Higher Education and …
The Government should outline how it and the Office for Students are working with HE...
The Government should outline how it and the Office for Students are working with HE institutions and franchisees to monitor this situation and manage the potential impact of a franchisee becoming insolvent. It should also outline what increased measures are … Read more
Government Response
The government partially accepts, outlining existing Office for Students monitoring for financial risks, including franchisees, and committing to further work with the OfS on international risk management for transnational education, including new guidance, a reporting route, and a £3m investment.
Department for Education
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36 Recommendation Accepted in Part
9th Report - Higher Education and …
The Government and the CMA should continue to monitor the impact of competition law on...
The Government and the CMA should continue to monitor the impact of competition law on the higher education sector, including whether it is deterring necessary conversations and moves towards closer 115 collaboration and mergers. The Government should also launch a … Read more
Government Response
The government accepts the recommendation to continue monitoring the impact of competition law and engaging with the CMA, but only commits to considering launching a consultation if needed, rather than initiating one as explicitly recommended.
Department for Education
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38 Recommendation Accepted in Part
9th Report - Higher Education and …
There should be greater coordination between local higher education providers, with further education colleges (many...
There should be greater coordination between local higher education providers, with further education colleges (many of which offer higher education courses) and with metro-mayors and combined authorities. Following the proposal of Lincoln University, there could be a role for regional … Read more
Government Response
The government agrees on stronger local coordination and highlights existing initiatives to promote collaboration, but explicitly rejects formal co-design or commissioning of higher education provision by local or regional bodies, stating that providers are autonomous.
Department for Education
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40 Recommendation Accepted in Part
9th Report - Higher Education and …
The Government’s reforms to the Strategic Priorities Grant should consider whether to reintroduce the Strategically...
The Government’s reforms to the Strategic Priorities Grant should consider whether to reintroduce the Strategically Important and Vulnerable Subjects programme that existed in the 1990s and 2000s and as proposed by the Royal Astronomical Society and Universities UK. Funding through … Read more
Government Response
The government partially accepts the recommendation, stating it is reforming the Strategic Priorities Grant to target high-cost and strategically important subjects. It will consider regional provision and collaborate with the Office for Students on access improvements, though it does not commit to reintroducing the specific programme mentioned.
Department for Education
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47 Recommendation Accepted in Part
9th Report - Higher Education and …
The Government should address the concerns raised by higher education providers about how they will...
The Government should address the concerns raised by higher education providers about how they will monitor the tougher BCA targets for institutions. It should commit to using real-time data, avoid using unreliable international ranking metrics, consider phasing in the changes, … Read more
Government Response
The government is phasing in BCA changes, with tightened metrics taking effect in June 2026 and June 2027, and transitional measures in place. It will offer discretionary assessments for smaller institutions and has enhanced data sharing mechanisms, addressing concerns about monitoring and fairness.
Department for Education
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52 Conclusion Accepted in Part
9th Report - Higher Education and …
We heard strong opposition from the higher education sector to the International Student Levy.
We heard strong opposition from the higher education sector to the International Student Levy. They are concerned they may not be able to pass on the extra cost to students through higher fees and will struggle to absorb the additional … Read more
Government Response
The government states it has listened to the sector's concerns regarding the International Student Levy and has introduced measures such as delaying implementation until 2028/29, allowing payment in arrears, and providing an allowance for smaller providers, alongside a technical consultation and continued engagement.
Department for Education
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53 Recommendation Accepted in Part
9th Report - Higher Education and …
The Government has decided to proceed with the international student levy, despite the evidence which...
The Government has decided to proceed with the international student levy, despite the evidence which we received expressing concerns about its impact on the higher education sector. We urge the Government to engage with and take on board the concerns … Read more
Government Response
The government states it has listened to concerns and introduced mitigations for the international student levy, including delaying its introduction until 2028/29, allowing payment in arrears, providing an allowance for smaller providers, and launching a technical consultation for continued engagement.
Department for Education
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56 Recommendation Accepted in Part
9th Report - Higher Education and …
During our visit to Warwick University we heard that the increased graduate unemployment in China...
During our visit to Warwick University we heard that the increased graduate unemployment in China and a currency shock in Nigeria have made students from those countries more price sensitive. There is also increasing competition with a growing number of … Read more
Government Response
The government states it is already conducting and expects to publish research on the price elasticity of EU and non-EU students by Autumn 2026. However, it will not assess price elasticity by country of origin, deeming such detailed analysis as not providing robust conclusions.
Department for Education
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Government Response AI assessment · 55 of 36 classified
Accepted 26
Accepted in Part 11
Acknowledged 6
Deferred 4
Not Addressed 2
Rejected 6
Total 36 recs + 25 conclusions
Correspondence 11 letters
14 Apr 2026 To committee Joint letter from UCEA and UUK on Higher Education and Funding: Threat of Insolvency and International Students 20.03.26
Parliament page
24 Mar 2026 Correspondence with HM Treasury on Higher Education and Funding: Threat of Insolvency and International Students dated 16.02.26 and 23.03.26
Parliament page
13 Jan 2026 To committee Letter from Minister for Skills on Higher Education and Funding, dated 19.12.25
Parliament page
9 Dec 2025 From committee Letter to Minister for Skills on Higher Education and Funding dated 09.12.25
Parliament page
3 Jun 2025 To committee Letter from NUS on follow up evidence from Higher Education and Funding: Threat of Insolvency and International Students, dated 27.05.25
Parliament page
3 Jun 2025 To committee Letter from Professor Malcolm Press CBE on Higher Education and Funding: Threat of Insolvency and International Students, dated 27.05.25
Parliament page
20 May 2025 To committee Letter from Secretary of State on Higher Education 14.05.25
Parliament page
7 May 2025 From committee Letter to Rt Hon Bridget Phillipson MP, Secretary of State for Education on Higher Education 06.05.25
Parliament page
6 May 2025 To committee Letter from Provost, The University of Edinburgh on Higher Education 25.04.25
Parliament page
29 Apr 2025 To committee Letter from BUILA on Higher Education dated 23.04.25
Parliament page
23 Apr 2025 To committee Letter from the Russell Group of Universities on Higher Education and Funding dated 16.04.25
Parliament page