Labour is urged to provide a more long term plan for funding universities and higher education after the Office for Students warns of financial instability for many across the UK as universities handle a £3.4bn decrease in net income in the coming academic year.
The OFS predicts that decreases in recruitment will be a significant factor in the large drop of income, particularly the recruitment of international students. The last academic year saw a loss of 16% of study visas distributed compared to 2023. In 2022-23, international students tuition fees totalled £11.8bn reported by HESA.
The Labour government has announced an increase in domestic tuition fees by £285, which will add £371 million to higher education funding, yet it covers only a small percentage of necessary funding.
Whilst Labour has been pushed to tackle the upcoming issues with higher education, universities are encouraged to collaborate with each other and look into mergers and cost sharing, as well as avoid replicating courses in the near-by area.
The OFS claims that the continued growth of higher tariff universities such as institutions part of the Russell Group is at the cost of smaller establishments – lower tariff universities have also significantly decreased in recruitment.
For 40% of these universities, their liquidity is expected to last only 30 days or less, indicating a national economic issue within higher education. Long term impacts are unknown but further government action is necessary since the lack of funding could be detrimental to the UK’s education sector.
