Blitz Bureau
THE higher education sector in England faces continued financial pressures due to reductions in the number of students entering higher education, according to a report by the Office for Students (OfS), the regulator for British higher education.
The report suggests that, without taking steps to address financial risks, 72 per cent of higher education providers could be in deficit by 2025-26, and 40 per cent would have fewer than 30 days’ liquidity. It estimates a net income reduction of 3.45 billion British pounds (4.38 billion US dollars) for the sector by 2025- 26, based on current trends and not considering significant mitigating actions.
The analysis updates the OfS’s annual financial sustainability report. Its modelling is based on data submitted in late 2023 and includes changes to UK undergraduate tuition fee levels as well as the increase in national insurance contributions for employers announced in the latest Budget.
“A competitive recruitment market for UK students means some universities will lose out and will need to update their plans,” says Susan Lapworth, chief executive of the OfS. “And all institutions will be alive to the impact of a sharp reduction in visa applications for international students.”
