Home / Sources / Select Committees / Education Committee / Higher Education and Funding: Threat of…
Index live
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

Clear

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
5 Recommendation 9th Report - Higher Education and Fundi… Rejected

The Government should support universities to address the financial challenges caused by the requirement for...

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 them to outsource staffing to wholly owned subsidiary companies as … Read more

Government response AI 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.
Read full response →
Department for Education
6 Recommendation 9th Report - Higher Education and Fundi… Rejected

The Government should explore the following options: • Both UCEA and UCU have asked HM...

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 valuation in 2023 was based on data from 2020. The … Read more

Government response AI 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.
Read full response →
Department for Education
11 Recommendation 9th Report - Higher Education and Fundi… Rejected

As a first step to improve governance, the Government should work with the higher education...

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 has occurred in the financial services sector. We may also … Read more

Government response AI 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.
Read full response →
Department for Education
19 Recommendation 9th Report - Higher Education and Fundi… Rejected

As the Government is now intending also to link increases in the undergraduate tuition fee...

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 to be repeated. (Recommendation, Paragraph 105) 112 Support for Higher … Read more

Government response AI 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.
Read full response →
Department for Education
42 Conclusion 9th Report - Higher Education and Fundi… Rejected

The Home Office plays a significant, even preeminent, role in the financial health of the...

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 written evidence, and we heard differing views on whether to … Read more

Government response AI 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 …
Read full response →
Department for Education
43 Recommendation 9th Report - Higher Education and Fundi… Rejected

The Home Office should be made a co-owner of the International Education Strategy and commit...

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. (Recommendation, Paragraph 224) Read more

Government response AI 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.
Read full response →
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…