Overview

• The Office for Students reports that 43% of higher education providers in England are forecast to operate at a deficit in 2024/25, marking the sector's third year of declining income.
• International student recruitment has dropped by 21% compared to last year’s projections, largely due to visa restrictions introduced in January 2024.
• Universities are responding to financial pressures by cutting courses, laying off staff, and planning to sell over £400 million in assets this year.
• Domestic tuition fees, frozen since 2017, will see a modest increase to £9,535 for the 2025/26 academic year, but this is unlikely to offset inflationary pressures.
• The government is expected to release a higher education reform plan this summer, as MPs and regulators warn of significant medium-term risks to institutional viability.