Universities facing severe financial difficulties as a
result of the coronavirus will now be able to apply for
further Government support, the Education Secretary
announced today (Thursday 16 July).
has
announced details of a new restructuring regime,
specifically for higher education providers, such as
universities and colleges in England, that could be at risk
of insolvency. The scheme aims to support the important
role universities play in their local economies, and
preserve the country’s science base.
Eligible providers will be able to seek this additional
support to develop cost effective restructuring plans with
conditions designed to focus the sector towards the future
needs of the country, such delivering high quality courses
with good graduate outcomes.
Education Secretary said:
“We understand the challenges universities are facing,
which is why we have already provided a range of support to
ease financial pressures. This new scheme will help those
who are still facing financial difficulty as a result of
COVID-19.
“As the country recovers from the pandemic we must look to
the future, and our world-leading higher education has an
important role to play in our success.
“We need our universities to achieve great value for money
– delivering the skills and a workforce that will drive our
economy and nation to thrive in the years ahead. My
priority is student welfare, not vice-chancellor salaries.”
The plan builds on the higher education support packages
announced in May and June, by the Department for Education
and Department for Business, Energy and Industrial
Strategy, as well as the range of business support measures
the Government has put in place to support our whole
economy.
This included confirming higher education providers are
eligible to access the Coronavirus Job Retention scheme and
business loan schemes, as well as bringing forward tuition
fee and research funding. The Restructuring Regime will
only provide support after all other finance options have
been exhausted and when there is a case to do so.
As a condition for taking part in the scheme, universities
will be required to make changes that meet wider Government
objectives, depending on the individual provider’s
circumstances. This could include ensuring they deliver
high quality courses with strong graduate outcomes,
improving their offer of qualifications available, and
focusing resources on the front line by reducing
administrative costs, including vice-chancellor pay.
An independently-chaired Higher Education Restructuring
Regime Board will be established, which will include input
from members with specialist knowledge external to
Government. The Education Secretary will draw on the
expertise of the Board on individual cases before making a
decision on whether to intervene.
Financial support in the form of repayable loans will only
be provided if there is a case to do so, and this is not a
guarantee that no organisation will go into insolvency. It
will only be offered as a last resort measure and with
specific conditions that align with wider Government
objectives. It would also require assurance that providers
are fully complying with their legal duties to secure
freedom of speech.
Further details on the regime, including support and
conditions can be found here.
