Two in five universities consider joining forces through ‘multi academy trust’ style models or mergers, new survey UUK shows

Two in five universities consider joining forces through ‘multi academy trust' style models or mergers, new survey shows

A new survey of more than 140 universities reveals the steps they are taking to respond to funding pressures and ensure they continue to deliver world-class education now and into the future.

The survey, conducted between March and April 2026 by Universities UK (UUK), asked respondents where they have already made cuts due to financial necessity, and where they would consider future cuts if required.

Universities are stepping up their efforts to work creatively and collaboratively to unlock efficiency. Of those responding to the survey, the third annual iteration of such research:

• 81% are considering digital transformation
• 71% are open to shared procurement options
• 65% are considering collaborative structures such as federations and alliances

Currently, only a small minority have already pursued large-scale structural change such as mergers or acquisitions with another university, but the survey shows that two in five institutions are open to or actively considering mergers or acquisitions with other universities in the future.

However, the survey found significant barriers limiting the progress universities can make on their own. Universities are calling for greater flexibility over VAT and government support for the upfront costs of radical collaboration through a Transformation Fund to ensure they can make real progress on the transformational projects that will allow them to take control of their financial situation.

In the survey, a lack of institutional knowledge and skills were also cited as major barriers to transformation. Through its transformation and efficiency programme, UUK is sharing experience and best practice and facilitating access to specialist legal and financial expertise to support institutional transformation programmes.

The survey highlighted other key areas of cost cutting by universities and further measures they are considering.

• Staffing has become one of the most common areas of cost saving with 79% of universities pursuing voluntary redundancies and 79% implemented hiring freezes or pauses to recruitment over the last three years. 
• Student-facing funding cuts increased from last year's survey, with 27% cutting student bursaries and scholarships (compared with 15% in 2025) and 13% cutting hardship funding, (9% in 2025) .
• Almost a third of institutions (31%) reported making cuts to academic research activity in the last three years, up from 14% in 2024.

The findings show changes to courses also remain widespread. Just under half of universities reported having reduced their course offering through consolidation (46%) or course closures (44%) over the last three years.

Operational cutbacks also remain common across the sector, with over half (54%) cutting back on repairs and maintenance. 13% have closed campuses in the past three years and 29% would consider doing so in the future. 

While recent uplifts to the domestic undergraduate tuition fee cap were cited as having a positive impact on finances, most English and Welsh institutions (92%) said the fee uplift would not fully offset the financial impact of planned policy changes. 

Almost all respondents report being impacted by government policy changes, cost inflation and wider financial pressures. The most cited negative impacts on institutional finances were increases to employer national insurance contributions (79% of institutions), changes to international student recruitment (67%) and pay and non-pay cost inflation (65%).  

Vivienne Stern MBE, Chief Executive of Universities UK:

“Universities are grasping the nettle to respond to the severe financial pressures they are facing. Many have had to make significant cuts, but the survey also shows how the sector is finding creative, collaborative solutions to become more efficient and ensure it can continue to deliver the world-class education the UK is known for.

“However, there are clearly barriers to what universities can do on their own. We are extremely grateful to the government for the tough decision to uplift fees in line with inflation in England and Wales, but as the survey results show, it just doesn't go far enough. Course closures, staff redundancies and reduced research, which ultimately hit students, local economies and national prospects for growth cannot continue to be the only solution to the sector's financial challenges.

“If the government is serious about driving growth and ensuring that the opportunities that universities create for people all over the UK remain in place, we need smart investment into higher education.”

ENDS

Notes to Editors:

1. A survey of UUK member Finance Directors was conducted between March - April 2026, asking respondents where they have made cutbacks due to financial necessity and where they would consider future cuts if required. Responses were received from institutions across the UK, with a wide variety of institution types represented.
2. 48 members responded to the survey in total. This corresponds to 34% of UUK's membership.   This was the third consecutive year running the survey. The survey repeated several questions from the 2025 and 2024 editions to allow comparability.