9th Report - Higher Education and Funding: Threat of Insolvency and International Students

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.