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

Select Committee
Education Committee HC 807 12 May 2026
Report Status Government responded
Conclusions & Recommendations 61 items (36 recs)
Government Response (AI assessment · 55 of 61 classified)
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
5 Recommendation Rejected
The Government should support universities to address the financial challenges caused by the requirement for...
Recommendation
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 Summary
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
The Government should explore the following options: • Both UCEA and UCU have asked HM...
Recommendation
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 Summary
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
As a first step to improve governance, the Government should work with the higher education...
Recommendation
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 Summary
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
As the Government is now intending also to link increases in the undergraduate tuition fee...
Recommendation
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 Summary
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
The Home Office plays a significant, even preeminent, role in the financial health of the...
Conclusion
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 Summary
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
The Home Office should be made a co-owner of the International Education Strategy and commit...
Recommendation
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 Summary
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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