Select committee: Education Committee
Recommendation 40
9th Report - Higher Education and Funding: Threat of Insolvency and International Students
Published 12 May 2026
Addressed to Department for Education
Education Committee Higher Education and Funding: Threat of Insolvency and International Students All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
The Government’s reforms to the Strategic Priorities Grant should consider whether to reintroduce the Strategically Important and Vulnerable Subjects programme that existed in the 1990s and 2000s and as proposed by the Royal Astronomical Society and Universities UK. Funding through the grant could cover both high-cost subjects (which the Government has said it wants to prioritise) and strategically important subjects not currently eligible for teaching grants (e.g. modern languages). The diversity of the higher education sector should be reflected by targeting such grants at areas or types of institution where cold-spots are at risk of developing, to ensure the provision of high-cost and strategically important subjects across the country and at institutions with varying entry standards. (Recommendation, Paragraph 202) 116 International Students: Impact of the Government’s reforms
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.