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 …
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36
Recommendations
25
Conclusions
1
Report
3
Oral sessions
11
Letters
3
Events
Activity timeline 16 events
22 Jul
2026
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12 May
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14 Apr
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24 Mar
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13 Jan
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9 Dec
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25 Nov
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21 Oct
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3 Jun
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3 Jun
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20 May
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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
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| 9th Report - Higher Education and Funding: Threat of Insolvency … | HC 807 | 12 May 2026 | 61 | Responded |
Recommendations & Conclusions
6 results
1
Recommendation
Acknowledged
9th Report - Higher Education and …
There are widespread economic, social and research benefits from the higher education sector.
There are widespread economic, social and research benefits from the higher education sector. These benefits are particularly important in less prosperous areas. While Baroness Smith is right to highlight the economic benefits of larger institutions, we found that even smaller …
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Government Response
The government acknowledges the substantial contribution of higher education to the UK economy, society, and local communities, affirming its vital civic role without detailing how it will specifically take account of the anchor role in policy.
Department for Education
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7
Conclusion
Acknowledged
9th Report - Higher Education and …
The high levels of university borrowing and the covenants which are in force are adding...
The high levels of university borrowing and the covenants which are in force are adding to the financial pressures facing some providers in the higher education sector. This expansion followed the removal of borrowing controls in 2018 when the Office …
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Government Response
The government acknowledges concerns about high university borrowing and states it continues to engage with stakeholders and is keeping under review the feasibility of any Office for Students role in agreeing high levels of borrowing.
Department for Education
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12
Conclusion
Acknowledged
9th Report - Higher Education and …
We welcome the Government’s moves to introduce mandatory regulation of franchise providers with 300 or...
We welcome the Government’s moves to introduce mandatory regulation of franchise providers with 300 or more students and the availability of better data. There remains a major risk for some HE institutions that have become heavily dependent on franchisees that …
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Government Response
The government recognizes the Committee’s concerns regarding financial risks from franchising arrangements and welcomes the acknowledgment of steps already taken, but does not commit to new specific actions to address the *remaining* risk.
Department for Education
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16
Conclusion
Acknowledged
9th Report - Higher Education and …
The higher education sector is under unprecedented financial pressure, with the Office for Students reporting...
The higher education sector is under unprecedented financial pressure, with the Office for Students reporting that 45% of higher education providers could face a deficit in 2025–26 without mitigating action. We have heard that these financial pressures vary amongst different …
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Government Response
The government recognises the financial pressures but notes that the sector's overall financial position has improved compared to previous forecasts due to actions taken by providers, the Office for Students, and the government.
Department for Education
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37
Conclusion
Acknowledged
9th Report - Higher Education and …
There are risks of cold-spots developing in geographical areas, heightened because more students are living...
There are risks of cold-spots developing in geographical areas, heightened because more students are living at home whilst studying; in specific subjects such as music, physics, chemistry and modern languages; and where courses feed into local provision of important professions, …
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Government Response
The government recognises the risk of cold-spots emerging across geographies, subjects, and key public service pipelines, especially with more students studying locally.
Department for Education
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49
Conclusion
Acknowledged
9th Report - Higher Education and …
We join with the higher education sector in welcoming that the UK will be associating...
We join with the higher education sector in welcoming that the UK will be associating with the Erasmus+ programme from 2027. (Conclusion, Paragraph 249)
Government Response
The government acknowledged the committee's welcome for the UK joining Erasmus+ from 2027, reiterating the positive opportunities it will bring.
Department for Education
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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