Source · Select Committees · Petitions Committee
Recommendation 5
5
Acknowledged
Paragraph: 30
If a university has failed to provide the education a student has paid for, the...
Conclusion
If a university has failed to provide the education a student has paid for, the student is entitled to a refund from that university. However, given the likely impact of Covid-19 on universities—which could cost them around £2.5 billion in fees and teaching grant income alone—there is a risk that a large number of students requesting and being entitled to a refund could have a serious and detrimental effect on the sustainability of the higher education sector. That is not, however, a reason to prevent students from receiving any refunds to which they are entitled.
Government Response Summary
The government states that student entitlement to a refund depends on individual contractual agreements. It details various financial support measures provided to universities, including loans and a restructuring regime, to help them manage the financial impacts of COVID-19 and ensure sector sustainability.
Paragraph Reference:
30
Government Response
Acknowledged
HM Government
Acknowledged
factors, including the individual contractual agreement between the student and their provider. The Government has acted to help higher education providers manage the financial impacts of COVID-19. We have confirmed that universities and other higher education providers are eligible to apply for government-backed loans and financing packages. The OfS estimates that these schemes could be worth at least £700m to the sector, depending on eligibility and take-up. We also published further guidance about how providers can access the Coronavirus Job Retention Scheme to safeguard staff jobs, in particular stating that any grant from the scheme should not duplicate other sources of public funding where these are being maintained, such as home student tuition fees. On top of this, in May we announced a package of measures which combine different ways to give further support to universities and other higher education providers at this time of financial pressure. We are pulling forward an estimated £2.6bn worth of forecast tuition fee payments to ease cashflow pressure this autumn. We are also bringing forward Quality-related Research funding for providers in England in the current academic year by £100m. We expect access to the business support schemes and the reprofiling of public funding should be sufficient to help stabilise most providers’ finances, and that should certainly be the first port of call for providers. Building on the stabilisation package and access to business support schemes, the Department for Business, Energy and Industrial Strategy announced in June a further package of support to universities and other research institutions to enable them to continue their research and innovation activities. This includes £280 million of government funding as well as a package of low-interest loans with long pay-back periods, supplemented by a small amount of government grants. In sharing responsibility for the future of science and research with our world-leading university system, the Government will cover up to 80% of a university’s income losses from international students for the 2020/21 academic year, up to the value of their non-publicly funded research activity. On 16 July, the Secretary of State for Education also announced details of a restructuring regime for higher education providers in England. It will review providers’ circumstances and assess the need for restructuring and financial support. We will only intervene where we find there is a case to do so, and as a last resort. The regime is not a guarantee that no organisation will fail. We will consider providers on a case-by-case basis to ensure there is a robust value for money case for intervention.