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
6 results
Clear
5 Recommendation Rejected
9th Report - Higher Education and …
The Government should support universities to address the financial challenges caused by the requirement for...
The Government should support universities to address the financial challenges caused by the requirement for some universities to offer membership of the Teachers’ Pension Scheme. The current situation is imposing a high cost on providers in the scheme, whilst incentivising … Read more
Government Response
The government rejects the recommendation, stating that universities are independent and responsible for managing their own finances. It notes that the significant reduction in the TPS employer contribution rate from April 2027 is expected to ease financial pressures.
Department for Education
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6 Recommendation Rejected
9th Report - Higher Education and …
The Government should explore the following options: • Both UCEA and UCU have asked HM...
The Government should explore the following options: • Both UCEA and UCU have asked HM Treasury to review the SCAPE discount rate, which was reduced at the last valuation and UCEA stated caused the increase in employer contributions. The previous … Read more
Government Response
The government rejects the recommendations, explaining that HM Treasury sets the SCAPE rate, universities are independent for financial support, and while acknowledging subsidiary models, expects financial pressures to ease from April 2027 due to reduced employer contribution rates.
Department for Education
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11 Recommendation Rejected
9th Report - Higher Education and …
As a first step to improve governance, the Government should work with the higher education...
As a first step to improve governance, the Government should work with the higher education sector to implement Sir Philip Augar’s proposal to defer some of the financial pay of senior leadership until their term of office is over, as … Read more
Government Response
The government rejects the recommendation to implement deferred pay for senior leadership, stating that the Office for Students already requires robust governance and acknowledges appropriate remuneration should reflect responsibilities and accountability.
Department for Education
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19 Recommendation Rejected
9th Report - Higher Education and …
As the Government is now intending also to link increases in the undergraduate tuition fee...
As the Government is now intending also to link increases in the undergraduate tuition fee cap to forecast inflation, the Government should explain the mitigation it will put in place were the previous trend of substantial under-estimation of forecast inflation … Read more
Government Response
The government rejects the recommendation, stating that legislative and delivery timetables prevent in-year changes to address inflation fluctuations and that HE providers are ultimately responsible for managing their own finances.
Department for Education
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42 Conclusion Rejected
9th Report - Higher Education and …
The Home Office plays a significant, even preeminent, role in the financial health of the...
The Home Office plays a significant, even preeminent, role in the financial health of the higher education sector. This is because international students are heavily affected by changes in immigration rules. This influence came in for some strong criticism in … Read more
Government Response
The government rejected the committee's regret about the Home Office not being a co-owner of the International Education Strategy, explaining that they collaborated as a department and that co-ownership lies with other departments. It outlined existing and ongoing close working relationships between DfE and Home Office on international education.
Department for Education
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43 Recommendation Rejected
9th Report - Higher Education and …
The Home Office should be made a co-owner of the International Education Strategy and commit...
The Home Office should be made a co-owner of the International Education Strategy and commit to adhering to it in future immigration policy that affects international students. This should be alongside stronger coordination across the Government on higher education policy. … Read more
Government Response
The government explicitly rejects making the Home Office a co-owner of the International Education Strategy, stating it is co-owned by DfE, DBT, and FCDO, while affirming close working relationships and Home Office representation on the Education Sector Action Group.
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
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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