UK Universities Face Bankruptcy Risk: Calls for Urgent Funding as Financial Crisis Looms
May 20, 2024Universities in England are facing a serious financial crisis, with potential bankruptcies within two years.
The Office for Students reported that 40% of universities would end the year in deficit.
An increase in tuition fees by £2,000 to £3,500 per student annually is suggested to stabilize finances.
Former ministers are advocating for urgent funding increases to prevent university closures.
Falling domestic tuition fees and a reliance on international students for revenue are exacerbating financial pressures.
Possible measures by Rishi Sunak to reduce international student numbers could further impact university finances.
Political parties are hesitant to address the issue before elections, with Labour facing challenges due to past promises to scrap tuition fees.
Suggestions for reform include reviewing the loans system and restoring fees to pre-freeze levels, though raising fees is seen as politically unpopular.
There are calls for increased government funding per domestic student to address resourcing issues.
Labour is considering a graduated repayment scheme for graduates and increased maintenance support for poorer students.
Stabilizing international student demand is emphasized as crucial to preventing a financial crisis in the sector.
Summary based on 1 source
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Source
The Guardian • May 19, 2024
Ex-ministers warn UK universities will go bust without higher fees or funding