The higher education sector in England is facing a financial crisis that now poses a real risk of institutional insolvency, according to the Parliamentary Education Select Committee.
The committee stressed without urgent and coordinated action, there is a clear possibility of a university closing. Given universities’ anchor role in their local communities, the collapse of a provider would be calamitous. It would risk closing off opportunities for students from lower socio-economic backgrounds, lead to the loss of irreplaceable expertise, and undermine local research and development. The ripple effects would be felt throughout local economies and internationally.
The report recommends that the Government urgently establish a formal early warning and intervention protocol, triggered when the Office for Students categorises an institution as at risk of insolvency. This protocol should set out clearly when government intervention is warranted and provide a menu of responses, ranging from restructuring to an orderly exit
The report also explained as a result of the fee freeze, universities have been driven to increase income from fees for postgraduate and international students, creating an unhealthy reliance on international recruitment.
Read the full report here:
https://committees.parliament.uk/publications/52983/documents/295982/default
