Select committee: Education Committee

Recommendation 22

9th Report - Higher Education and Funding: Threat of Insolvency and International Students Published 12 May 2026 Addressed to Department for Education
Recommendation (the committee's words)
The protocol should include assessment of viability, quality of provision, size and scale and importance to the local community and economy, accompanied by a review of governance and greater financial reporting requirements. Costed plans would be required for protecting students, staff and the wider community in the event of insolvency. A decision could then be made on which of a range of options to implement, including • Restructuring, • Merger or inclusion in a multi-university organisation, • Taken over by another institution, • Direct financial support, or • Orderly exit. (Recommendation, Paragraph 121) When a Higher Education provider becomes insolvent

From: Education Committee, 9th Report - Higher Education and Funding: Threat of Insolvency and International Students (HC 807), 12 May 2026

Government response

The government responded to the whole report on 22 July 2026 (deadline 12 July 2026).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government welcomes the report and sets out its position on each recommendation, accepting a few, partially accepting several, rejecting others and stating that many are covered by "plans already in place".

  • On insolvency, the government rejects a bespoke special administration regime, saying it is "not currently persuaded" the case has been "sufficiently demonstrated", and that intervention is not the default response.
  • On teachers' pensions, it rejects the recommendation and does not consider additional financial support for higher education providers in England "appropriate", but says HM Treasury has confirmed the employer contribution rate will fall from 28.68% to 17.5% from April 2027, fixed for four years.
  • It declines to commit to a timeline for reaching 80% cost recovery across all research funders, because the main drivers are "the decisions of independent and autonomous institutions".
  • On international students, it says the levy will not start until 2028/29, with an allowance for the first 220 international students per year, and that maintenance grants of up to £1,000 will return from 2028/2029.

Read the government's response ↗ Report an error