Question to the Department for Education:

To ask His Majesty's Government what assessment they have made of the financial state of universities; and what steps they are taking to address issues in this regard.

The Office for Students (OfS), the independent regulator of Higher Education (HE) in England, publishes an annual report on the financial health of the HE sector.

The OfS’ most recent report, published in May 2024, showed that the financial position of the HE sector has become increasingly challenging. The report can be found at: https://www.officeforstudents.org.uk/media/ly1buqlj/financial-sustainability-report2024.pdf, as attached.

The government recognises the immediate financial strain that some providers are under, and the department is working closely with the OfS to monitor any risks to ensure there are robust plans in place to mitigate them. Sir David Behan has been appointed as interim Chair of the OfS to oversee the important work of refocusing their role to concentrate on key priorities, including prioritising the financial stability of the HE sector.

This government is committed to creating a secure future for our world-leading universities so they can deliver for students, taxpayers, workers and the economy. This government has already started reviewing options to deliver a more robust HE sector, but we recognise it will take time to get it right.

Ultimately, HE providers are independent from government and therefore it is their responsibility to ensure they have a sustainable business model.