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Select Committee · Education Committee

Higher Education and Funding: Threat of Insolvency and International Students

Status: Open Opened: 12 Jun 2025 36 recommendations 25 conclusions 1 report

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 on 8 April, the Committee … Show more

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Reports

1 report
Title HC No. Published Items Response
9th Report - Higher Education and Funding: Threat of Insolv… HC 807 12 May 2026 61 Responded

Recommendations & Conclusions

6 items
1 Recommendation 9th Report - Higher Education and Fundi… Acknowledged

There are widespread economic, social and research benefits from the higher education sector.

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 universities can have an immense impact, especially when located in … Read more

Government response AI 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.
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Department for Education
7 Conclusion 9th Report - Higher Education and Fundi… Acknowledged

The high levels of university borrowing and the covenants which are in force are adding...

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 for Students was created. Increases in interest rates in the … Read more

Government response AI 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.
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Department for Education
12 Conclusion 9th Report - Higher Education and Fundi… Acknowledged

We welcome the Government’s moves to introduce mandatory regulation of franchise providers with 300 or...

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 their withdrawal from providing courses could have a shock effect … Read more

Government response AI 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.
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Department for Education
16 Conclusion 9th Report - Higher Education and Fundi… Acknowledged

The higher education sector is under unprecedented financial pressure, with the Office for Students reporting...

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 types of HE provider, but stem from the freezing of … Read more

Government response AI 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.
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Department for Education
37 Conclusion 9th Report - Higher Education and Fundi… Acknowledged

There are risks of cold-spots developing in geographical areas, heightened because more students are living...

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, such as nursing courses that support local pipelines into nursing. … Read more

Government response AI summary
The government recognises the risk of cold-spots emerging across geographies, subjects, and key public service pipelines, especially with more students studying locally.
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Department for Education
49 Conclusion 9th Report - Higher Education and Fundi… Acknowledged

We join with the higher education sector in welcoming that the UK will be associating...

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 AI summary
The government acknowledged the committee's welcome for the UK joining Erasmus+ from 2027, reiterating the positive opportunities it will bring.
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Department for Education

Oral evidence sessions

3 sessions
Date Witnesses
25 Nov 2025 Patrick Curry · Department for Education, Susan Lapworth · Office for Students, The Rt Hon. the Baroness Smith of Malvern · The Department for Education View ↗
21 Oct 2025 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 View ↗
8 Apr 2025 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 View ↗

Who gave evidence

20 witnesses
WitnessOrganisationSessions
Adam Leach · National Civic Impact Director Civic University Network 1
Alex Stanley · Vice-President of Higher Education National Union of Students 1
Andrew Bird · Chair British Universities' International Liaison Association 1
Carol Prokopyszyn · Chief Financial Officer, University of Manchester British Universities Finance Directors Group 1
Dr David Pilsbury · Secretary International Higher Education Commission 1
Dr Hollie Chandler · Director of Policy The Russell Group 1
Jo Grady · General Secretary University College Union (UCU) 1
Mr Neil Smyth · Partner Mills and Reeve LLP 1
Mr Raj Jethwa · Chief Executive Universities and Colleges Employers Association (UCEA) 1
Mrs Dani Payne · Head of Education and Social Mobility Social Market Foundation 1
Patrick Curry · Director for Higher Education Oversight Department for Education 1
Professor Brian Bell · Chair Migration Advisory Committee 1
Professor Dame Jessica Corner · Executive Chair, Research England UK Research and Innovation 1
Professor Malcolm Press CBE · Vice President (England and Northern Ireland) Universities UK 1
Rachel Hewitt · Chief Executive MillionPlus, The Association for Modern Universities 1
Rachel MacSween · Director of Client Partnerships and Stakeholder E… IDP Education UK and Ireland 1
Sir Philip Augar · Chair of the 2019 Independent Panel Post-18 Education and Funding Review 1
Susan Lapworth · Chief Executive Office for Students 1
The Rt Hon. the Baroness Smith of Malvern · Minister of State (Minister for Skills) The Department for Education 1
Vivienne Stern MBE · Chief Executive Universities UK 1

Correspondence

11 letters
DateDirectionTitle
14 Apr 2026 To cttee Joint letter from UCEA and UUK on Higher Education and Funding: Threat of Insol…
24 Mar 2026 — Correspondence with HM Treasury on Higher Education and Funding: Threat of Inso…
13 Jan 2026 To cttee Letter from Minister for Skills on Higher Education and Funding, dated 19.12.25
9 Dec 2025 From cttee Letter to Minister for Skills on Higher Education and Funding dated 09.12.25
3 Jun 2025 To cttee Letter from NUS on follow up evidence from Higher Education and Funding: Threat…
3 Jun 2025 To cttee Letter from Professor Malcolm Press CBE on Higher Education and Funding: Threat…
20 May 2025 To cttee Letter from Secretary of State on Higher Education 14.05.25
7 May 2025 From cttee Letter to Rt Hon Bridget Phillipson MP, Secretary of State for Education on Hig…
6 May 2025 To cttee Letter from Provost, The University of Edinburgh on Higher Education 25.04.25
29 Apr 2025 To cttee Letter from BUILA on Higher Education dated 23.04.25
23 Apr 2025 To cttee Letter from the Russell Group of Universities on Higher Education and Funding d…