The higher education sector in England faces a series of stiff challenges.
The government and the sector’s regulator in England, the Office for Students, are challenging the sector on the quality and value of its provision at the same time as the sector is experiencing serious financial headwinds.
These challenges are why the Industry and Regulators Committee launched an inquiry into the Office for Students (OfS) in March, leading to our report’s publication today.
Our key finding is that the current funding system for higher education is not sustainable and represents a looming crisis that, without further action, will threaten the quality of provision and the future of providers. Providers now make a loss when teaching domestic students and conducting research, leading to a dependence on cross-subsidy from international and postgraduate students, whose fees are not capped. This dependence comes with risks and appears worryingly complacent in an increasingly competitive international environment.
