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New inquiry launched into university funding
EB News: 13/06/2025 - 10:14
The Education Committee has launched a new inquiry into the financial viability of universities as they face the challenges of rising costs and falling numbers of international students.
It comes after the Office for Students published a report outlining the declining financial health of the sector, and warning that it may not be able to rely on the recruitment of international students for financial stability in the years ahead. This new inquiry follows the Government’s recent changes to immigration policy.
Education Committee Chair Helen Hayes MP said: “We have taken stock of the changing landscape in higher education and the perfect storm of problems universities are facing. Now the Education Committee will hold a forward-looking inquiry to understand what further steps are needed to secure a sustainable future for our universities.
“Universities are the lifeblood of their local economies, sustaining jobs, improving life chances and undertaking vital research. Yet they are currently facing a perfect storm as a consequence of tuition fees having barely increased in a decade, pressure on research funding and government immigration policy which is leading to the number of international students falling.
“Our inquiry will look at the pressures on university finances, the steps that could be taken to stop a university from becoming insolvent and the plans and processes that should be in place in the event that a university does go bankrupt to protect students and staff and safeguard the local economy.”
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