June 17, 2022

Experts Warn English Universities Over Dependence on International Students’ Fees

A According to the Public Accounts Committee, 80 British institutions are "potentially” exposed to significant financial risks, with most of them declaring annual deficits. The recently published report also added that English universities face financial insecurity and declining student satisfaction.

The report put an onus on the British government and regulators for failing to ensure students receive value for money for their time in higher education.

According to the report, some universities are heavily reliant on overseas student fees, using that income to cross-subsidize research and other activities, leaving them "potentially exposed to significant financial risks" if international student numbers do not continue to grow.

…universities and other higher education providers entered the pandemic in good financial shape, and there is evidence that the sector in aggregate is well placed to recover from the challenges of the last two years…

The report concludes that the Office for Students, England's higher education regulator, has failed to make sufficient progress in getting a grip on the sector's long-term systemic challenges. The Public Accounts Committee also blamed inflation, the freeze on domestic tuition fees, pension costs and policy changes on student loans and minimum entry requirements for the state of English Universities.

Speaking to the press, Susan Lapworth, the interim chief executive of the Office for Students, said: “In the main, universities and other higher education providers entered the pandemic in good financial shape, and there is evidence that the sector in aggregate is well placed to recover from the challenges of the last two years.”

Posted in News and tagged News, English Universities, International Students, Fees, Public Accounts Committee, Student Loans, Deficit
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