Commenting in response to the Education Committee’s report ‘Higher Education and Funding: Threat of Insolvency and International Students’, Vanessa Wilson, CEO of University Alliance said:
“The findings of the Education Committee underline what universities have been warning for some time: higher education in England is facing a serious and systemic financial crisis, with real risks to students, communities and the wider economy if urgent action is not taken.
“Universities are civic and economic anchor institutions. They educate the future workforce, support innovation and research, educate public sector professionals and sustain local economies across all parts of the country.
“The Committee is right to highlight the long‑term erosion of university funding. A prolonged real‑terms freeze in undergraduate fees, chronic underfunding of research and rising costs have forced institutions to rely heavily on international student fees to cross‑subsidise teaching and research.
“The Committee rightly spotlights how the costs of the Teachers’ Pension Scheme are particularly acute for post‑92 universities. Our members are legally required to offer the TPS without access to the public funding available to schools and colleges, whilst independent schools have been given flexibility to leave the scheme when costs become unsustainable. Notably, the report highlights University Alliance’s proposal for the government to address these pressures by granting universities greater flexibility over their pension arrangements.
“As University Alliance, we strongly share the Committee’s concerns about proposals for an international student levy. International students make a major contribution to the UK economy. A levy risks destabilising recruitment and would disproportionately impact teaching‑intensive universities that play a critical role in regional skills development and social mobility. If the government wishes to pursue reform, it must be grounded in evidence and developed in partnership with the sector.
“Universities are doing all they can to improve efficiency and resilience. But without urgent, coordinated government action towards a sustainable long‑term funding settlement, the risks identified by the Committee will only grow.”
ENDS
Notes to Editors
University Alliance’s written evidence to the committee’s enquiry can be read here.
Press contact
Please direct any enquiries to University Alliance’s Director of Communications Elizabeth Somerville on elizabeth@unialliance.ac.uk or 07539 154067.
