Universities: Financial Sustainability

Lord Young of Cookham Excerpts

Tuesday 21st May 2024 Lords Chamber

Asked by

[Lord Young of Cookham]

To ask His Majesty’s Government what assessment they have made of the financial sustainability of universities in England.

[The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)]

My Lords, the Government recognise that the sector’s financial position has become increasingly challenging. The financial health report from the Office for Students makes clear that the business models for a significant number of providers must change to ensure that they are financially sustainable. Indeed, all providers must continue to adapt to uncertainties and financial risks. Ultimately, providers are independent from government and, as such, it is for them to decide how they manage their finances.

[Lord Young of Cookham (Con)]

I am grateful to my noble friend. As she says, the universities are independent, but the Government set the framework within which they operate—freezing student fees for seven years and controlling student visas. Government has an overall responsibility to make sure that students get a good-quality education at universities and that they remain competitive internationally. What is my noble friend’s response to the rather worrying report from the Office for Students last week, which basically said that we need to review the business and funding model of universities if they are to continue to maintain their quality?