Fifty higher education providers in England have been identified as being at risk of exiting the sector within the next two to three years, according to evidence presented to the House of Commons education committee during its inquiry into university funding and insolvency risks.
The update follows a recent forecast from the Office for Students (OfS), which indicated that nearly half of universities are expected to enter deficit next year as financial pressures mount. The committee heard that 24 of the 50 vulnerable institutions face more immediate challenges, with the potential to halt degree-awarding provision within the next 12 months if conditions worsen.
While the OfS stressed that it is monitoring institutions closely and working proactively with university leaders and other stakeholders, the evidence underscored the scale of financial strain across the sector. Smaller institutions appear to be disproportionately affected: 30 of the 50 providers identified as at risk fall into this category, while the remainder have enrolments above 3,000 students.
The findings reflect a broader pattern of tightening budgets, inflationary pressures and growing operational costs that continue to shape England’s higher education landscape. The committee will continue assessing the sector’s financial resilience as it considers potential reforms to university funding models.
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