Select committee: Education Committee

Recommendation 30

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)
Protection for students should ensure a teach-out process and options for transfer to other suitable higher education providers, and ensuring international students can continue their studies until completion. Each institution should be required to undertake an assessment and develop a plan for the teach out and transfer of their undergraduate, post-graduate and research students in the event of insolvency. (Recommendation, Paragraph 158)

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