Nearly Half of English Universities Face Deficits as Government Demands Financial Transparency
The Office for Students reports 43% of institutions are projected to run deficits in 2024/25, as tuition fees rise and reforms are anticipated this summer.
Overview
- The Office for Students' latest analysis shows 43% of higher education providers in England are expected to operate at a deficit in 2024/25, up from 40% the previous year.
- Skills Minister Baroness Jacqui Smith called for universities to be more transparent in their use of public funds, emphasizing their responsibility to deliver value for students and taxpayers.
- Undergraduate tuition fees in England, frozen since 2017, will increase modestly from £9,250 to £9,535 for the 2025/26 academic year to address financial pressures.
- A significant drop in international student numbers, driven by visa restrictions and a ban on most dependants, has been identified as a key factor in the sector's financial decline.
- The Office for Students is preparing special administration protocols to safeguard students in the event of institutional failures, while a government-wide reform plan is expected this summer.