The Education Committee has today launched a new inquiry
into the financial viability of universities as they face the
challenges of rising costs and falling numbers of international
students after years of tuition fee freezes.
It comes after the Office for Students published a report
outlining the declining financial health of the sector, and
warning that it may not be able to rely on the recruitment of
international students for financial stability in the years
ahead. This new inquiry follows the Government's recent changes to
immigration policy.
The full terms of reference for this inquiry and the call for
evidence can be read below.
Education Committee Chair MP said:
“We have taken stock of the changing landscape in higher
education and the perfect storm of problems universities are
facing. Now the Education Committee will hold a forward-looking
inquiry to understand what further steps are needed to secure a
sustainable future for our universities.
“Universities are the lifeblood of their local economies,
sustaining jobs, improving life chances and undertaking vital
research. Yet they are currently facing a perfect storm as a
consequence of tuition fees having barely increased in a decade,
pressure on research funding and government immigration policy
which is leading to the number of international students
falling.
“Our inquiry will look at the pressures on university
finances, the steps that could be taken to stop a university from
becoming insolvent and the plans and processes that should be in
place in the event that a university does go bankrupt to protect
students and staff and safeguard the local economy.”
Call for evidence and terms of reference
The Committee now welcomes written evidence submissions that
respond to the following terms of reference for this inquiry.
Submissions can be made via the Committee's website by
31 July.
Impact of Government policy on international
students
- How will current Government policies affect the financial
stability of higher education institutions?
- What implications will these policies have on future tuition
fee increases for domestic students?
- What will the Government's policies on international student
enrolment mean for its policies on tuition fees for domestic
students given the sector's overall financial outlook?
Higher education insolvency protections
- What is the current state of insolvency processes for higher
education institutions?
- What measures exist to protect students, staff, and other
stakeholders in case of institutional insolvency?
- Are additional safeguards needed to strengthen
protections?
Ramifications of institutional insolvency and regional
impact
- What would be the consequences of a higher education provider
becoming insolvent?
- How do higher education institutions contribute to growth in
their local economies, the provision of public services, and
their wider communities?
- What strategies should be implemented to prevent insolvency
and ensure sustainable regional provision of courses?
ENDS
Note to Editors
- The Committee held a deep-dive evidence
session on 8 April to explore the problems facing
universities from across the higher education sector.
- The Committee wrote to the Secretary of State for Education
outlining evidence it heard in the 8 April evidence session and
called for clarity on when the Government plans to announce
reforms to the sector. The Committee's letter is available here,
and the Department's response is available
here.
