Saudi Press

Saudi Arabia and the world
Monday, Jun 02, 2025

UK Universities face £2.5bn tuition fee loss next year

UK Universities face £2.5bn tuition fee loss next year

Capping student numbers will not avert financial catastrophe, report warns
Capping the number of students who can attend each British university will not stave off the financial catastrophe that institutions face following the coronavirus outbreak, a report from the University and College Union (UCU) warns.

The report forecasts the sector could lose around £2.5bn next year in tuition fees alone, along with the loss of 30,000 university jobs, based on gloomy predictions of international and domestic students staying away if Covid-19 continues unchecked.

The government is negotiating with the university sector to limit the number of students each institution can admit in September, in the hope that it will help some avoid cutthroat competition and possible bankruptcy if their student intake slumps.

But the report, commissioned by UCU from London Economics, says a cap could be ineffective if more students are prepared to sit out next year. The consultancy’s forecasts show even the likes of Oxford and Cambridge seeing falling numbers of undergraduates entering from the UK and abroad.

“Our world-renowned universities are doing crucial work now as we hunt for a [Covid-19] vaccine and will be vital engines for our recovery both nationally and in towns and cities across the UK. It is vital that the government underwrites funding lost from the fall in student numbers. These are unprecedented times and without urgent guarantees, our universities will be greatly damaged at just the time they are needed most,” said Jo Grady, the UCU’s general secretary.

Rebecca Long-Bailey, the shadow education secretary, backed the call for greater government support. “UK universities must be valued as part of the frontline response to the coronavirus pandemic, supplying students to the NHS and conducting world-class research into the virus,” she said.

The report suggests that universities could lose £1.5bn in international student fees, more than £600m from UK-based students, and £350m from students from the EU, based on surveys of students’ intentions, including one conducted for Ucas, the admissions service.

Gavan Conlon, a partner at London Economics, said the pandemic will result in a “very substantial loss” in enrolments and income, requiring significant government support.

“The proposed student numbers cap will not be enough to avoid an overly competitive market for the remaining pool of applicants, with the impact of this actually being worse for some institutions than the effect of the pandemic itself,” Conlon said.

But Nick Hillman, the director of the Higher Education Policy Institute, said he thought the report’s forecasts for students numbers – particularly a 16% drop within the UK – were overly pessimistic.

“I do not want to underestimate the severe impact of Covid-19 on higher education. But, given the diversity of our higher education sector, we must ask if it is right for modelling to assume every single institution will face a recruitment crisis across the board,” Hillman said.

London Economics’ forecasts did not include the £790m lost in accommodation, catering and conference income identified by the Universities UK group of vice-chancellors in its recent submission to UK governments calling for at least £2bn in bailout funding.

“The union is absolutely right to warn of the knock-on impacts this would have for jobs, regional economics, local communities and students,” said Alistair Jarvis, the chief executive of UUK.

“Government must take urgent action to provide the support which can ensure universities are able to weather these very serious challenges, and to protect students, maintain research, and retain our capacity to drive the recovery of the economy and communities.”
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
×