9th Report - Higher Education and Funding: Threat of Insolvency and International Students
Select Committee
Education Committee
HC 807
12 May 2026
Government response
3rd Special Report - Higher Education and Funding: Threat of Insolvency and International Students: Government Response · published 22 Jul 2026
Recommendations & Conclusions
6 results
1
Recommendation
Acknowledged
There are widespread economic, social and research benefits from the higher education sector.
Recommendation
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 Summary
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
The high levels of university borrowing and the covenants which are in force are adding...
Conclusion
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 Summary
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
We welcome the Government’s moves to introduce mandatory regulation of franchise providers with 300 or...
Conclusion
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 Summary
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
The higher education sector is under unprecedented financial pressure, with the Office for Students reporting...
Conclusion
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 Summary
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
There are risks of cold-spots developing in geographical areas, heightened because more students are living...
Conclusion
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 Summary
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
We join with the higher education sector in welcoming that the UK will be associating...
Conclusion
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 Summary
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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