Universities: Insolvency
The question
To ask the Secretary of State for Education, what recent assessment her Department has made of trends in the levels of the risk of insolvency among universities in England.
Answered by Josh MacAlister
We are aware that some higher education (HE) providers are making difficult decisions about course consolidation and closures. As autonomous institutions, HE providers are responsible for managing their own finances. It is therefore right that they focus on ensuring their courses are financially sustainable.
The Office for Students (OfS) is responsible for monitoring and reporting on the HE sector’s financial sustainability. The department works closely with the OfS to understand the sector’s changing financial landscape and level of risk.
The government recognises that the sector's financial environment is challenging. This is why tuition fee caps were uplifted in line with forecast inflation for 2025/26, with further uplifts planned for 2026/27 and 2027/28. We will then legislate to increase tuition fee caps automatically for future academic years. The department has also appointed Professor Edward Peck as OfS Chair, where he will play a key role in strengthening its commitment to financial sustainability.
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