July 04, 2022

Office for Students Fear More Financial Risk for English Universities

A Although most English universities are recovering from the pandemic and returning to pre-Covid income levels, the Office for Students has found that financial risks remain, pointing to a continued reliance on overseas student income.

A report from England's independent higher education regulator provides data on higher education economic trends from 2019 to 2021, as well as estimates through 2024/25. The report forecasts growth of over £7 billion in total income by 2025, from £37.31bn in 2020/21 to a forecasted £45.72bn for 2024/25.

…the sector, and some providers in particular, continue to be reliant on recruitment of students from China… any event that reduces the flow of such students to the UK is likely to have a significant impact…

Between 2020–21 and 2024–25, the number of UK students is projected to increase by 16.5 percent, while the number of non–EU students is projected to increase by 40.2 percent, according to the report. While all of this is good news for the UK's education sector, the Office for Students warns that failure to hit forecast non-EU income targets will lead to increased financial pressure.

Regarding the potential for foreign income, the report states, “The sector, and some providers in particular, continue to be reliant on recruitment of students from China. Any event that reduces the flow of such students to the UK is likely to have a significant impact.”

According to the OfS research, the current economic climate and gradually growing inflation are two likely causes of future increases in university spending.

Posted in News and tagged News, UK, English Universities, China, OfS, Financial Risk
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