Higher Education: Finance
The question
To ask the Secretary of State for Education, what recent assessment her Department has made of the financial sustainability of higher education institutions; and what information her Department holds on the proportion of higher education institutions that are operating in deficit.
Answered by Josh MacAlister
The Office for Students (OfS), the independent regulator of higher education (HE) in England, monitors the financial health of providers to ensure it has an up to date understanding of the sustainability of the sector.
Its latest report, published on 8 May 2025, highlighted a decline in financial performance across the sector in 2023/24, with 44% of institutions forecasting a deficit in 2024/25.
The government recognises the financial pressures facing the sector and acknowledges that some providers are making difficult restructuring decisions to safeguard long-term sustainability. As autonomous institutions, universities must take appropriate financial decisions to remain viable. However, we expect providers to work with staff, using their knowledge and experience to help identify how best to operate efficiently. All efficiency measures taken by the sector should provide a better long-term future for staff, students and the country.
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