Question to the Department for Education:

To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of visa policies on university finances.

This government welcomes international students who enrich our university campuses, forge lifelong friendships with our domestic students and become global ambassadors for the UK. The government expects the UK to remain a highly attractive study destination. We have a world class higher education (HE) sector with four universities in the top 10 and 15 in the top 100, alongside a wide array of high quality institutions which can offer a fulfilling and enjoyable experience to international students from around the world.

The department recognises that the Office for Students (OfS), which is responsible for monitoring and reporting on the financial sustainability of English HE providers, has identified reliance on international student fee income as a risk. In its most recent update on the sector’s financial health, published in November 2024, the OfS found that international recruitment is significantly below the sector’s previous expectations. While we agree with the OfS’ assessment that more providers will need to adapt their business models to protect their financial stability, we are clear that high quality international students are welcome in the UK.

While the sector is autonomous and independent, the government is determined to secure the future of our world leading HE sector. That is why we have taken decisive action to support providers in moving towards a more stable financial footing.

In March, Professor Edward Peck was appointed as substantive Chair of the OfS. Professor Peck will continue the excellent work of interim Chair, Sir David Behan, focusing on the sector’s financial sustainability and increasing opportunities in HE. The department continues to work closely with the OfS in order to better understand the sector’s changing financial landscape.

Moreover, in November, my right hon. Friend, the Secretary of State for Education announced the difficult decision to increase tuition fee limits in line with forecast inflation. The maximum fee for a standard full-time undergraduate course in the 2025/26 academic year will increase by 3.1%, from £9,250 to £9,535. In return for the increased investment we are asking students to make, we expect the sector to deliver the very best outcomes, both for those students and for the country.

The government also recognises the impact that financial pressures are having on the HE workforce. We are aware that some providers, including Bournemouth University and the Arts University Bournemouth, are making difficult decisions around staffing in order to safeguard their financial sustainability. Given universities are independent, they are responsible for pay and provision of staff and the government does not have a role in intervening. However, we expect providers to work with staff, using their knowledge and experience to help identify how best to reduce unnecessary spend. All efficiency measures taken by the sector should provide better long term value both for students and the country.

This government is determined to build a HE system fit for the future. Ministers and departmental officials remain dedicated to engaging with the OfS, HE unions, the employer body and the wider sector. Regular discussions are being held to gain a deeper understanding of the issues impacting HE providers, students, and staff. This collaborative effort will contribute to the development of the department’s plan for HE reform, which we will publish in the summer.