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 Helen Hayes 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?
