Responding to the analysis published today (Friday) from the
Office for Students, which updates its annual financial
sustainability report for the higher education sector in England,
Vivienne Stern MBE, Chief Executive of Universities
UK, said:
“This country needs its universities to be firing on cylinders if
we are going to get the economy growing and improve public
services. But this new analysis from the OfS shows the scale of
the challenge. It is a source of serious concern. Universities in
all four nations of the UK are in an extremely difficult
position.
“A decade long near freeze in England saw inflation erode the
real value of student fees by around a third. The recent
government announcement to address this was an extremely welcome
step towards fixing the underlying problem. However, we need to
work on a longer-term solution. This will take action by
universities themselves, and by governments in all nations of the
UK.
“Universities are financially responsible organisations, who work
hard to carefully plan and manage their finances. Across the
sector tough decisions have already been made to control costs,
and universities will look to go further still to be as efficient
and effective as possible. As set out in our recent
Blueprint,
Universities UK has committed to leading a taskforce to unlock
the savings which could be delivered by collaborating at a
national level.”
Notes to editors:
- The OfS report includes new analysis at a sector level in
England of the impact of employer National Insurance contribution
changes, based on the lower salary threshold and 1.2 percentage
point increase to the contribution rate from April 2025. The OfS
estimates this will result in additional costs for the sector of
£133m in 2024-2025 and circa £430million each year from 2025-26.
- Universities UK is the collective voice of 141 universities,
harnessing the power of the UK's universities and creating the
conditions for them to thrive.
- UUK has recently published a Opportunity, growth and
partnership: a blueprint for change, outlining a package of
reform to stabilise, mobilise and maximise the contribution of
UK universities, working in partnership with government to
deliver to economic growth and widen opportunity.
