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Report warns that University Failures and Mergers may become more common


The report emphasized the importance of considering the future shape and size of the university sector to address its pressing issues.

According to a report, universities in England may face challenges such as dropping courses, merging with other institutions, or even failing if current funding trends persist.

The Higher Education Policy Institute (HEPI) outlined four scenarios, predicting that England’s universities may have to make “tough choices” due to funding challenges related to international student recruitment, research funding, and home undergraduate fees.

The report suggested that low-recruiting courses could be closed in most institutions, with a decrease in student applications and a focus on fewer research projects across universities.

The report also mentioned that some universities may thrive by managing scale and diversity, while others may struggle and face mergers with other institutions.

‘Mergers and Market Exits’

The HEPI report projected that the higher education landscape in the 2030s would see a reduction in the number of institutions as mergers and market exits become more common.

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The report’s author, Professor Sir Chris Husbands, warned that the future of English universities hinges on policy choices and addressing sector-wide issues.

Sir Chris emphasized that contemplating the future shape and size of the sector is crucial to overcoming the challenges universities face.

He stressed the need for the government to consider the higher education system and its support moving forward.

Last month, the Office for Students (OfS) advised universities to review their funding and business models to prevent financial difficulties and potential closures.
Recent changes to the visa system have impacted overseas fees for universities, leading to concerns about financial sustainability and the need to diversify funding sources.

It was suggested that regulations may be implemented to evaluate the efficacy of university courses based on progression rates, retention rates, and future earning potentials, with a focus on improving quality and value for students.

Both major UK parties have addressed the importance of higher education in recent campaigns, highlighting the need for policy shifts and support for universities.

PA Media contributed to this report.



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