English universities have suffered a £3.4 billion plunge in net income across the sector. Getty Images
English universities have suffered a £3.4 billion plunge in net income across the sector. Getty Images
English universities have suffered a £3.4 billion plunge in net income across the sector. Getty Images
English universities have suffered a £3.4 billion plunge in net income across the sector. Getty Images

Almost three quarters of English universities to face financial problems next year


Gillian Duncan
  • English
  • Arabic

Almost 200 English universities are predicted to be in the red next year, following a £3.4 billion plunge in net income across the sector, a new report has found.

The paper, published on Friday by the Office for Students, the independent regulator of higher education in England, found that 194, or 72 per cent, of universities could be in deficit by 2025-26.

The figure takes account of the inflation-linked rise in undergraduate tuition fees recently announced by the government from April, which is forecast to bring in £371 million more in fees, as well as the increase to employer National Insurance contributions, which is expected to cost the sector more than that – an additional £430 million each year from 2025-26.

The report found that although acceptances of undergraduate students via Ucas increased slightly, by 1.3 per cent, the recruitment of international students has decreased “significantly”, with a 16 per cent decline in applications for visas between January and September 2024 compared to the same period in 2023.

“The number of international students from certain countries that send significant numbers to study in the UK has decreased significantly,” the report said. “The number of students from some of these countries has decreased by more than 40 per cent.

“Providers’ financial exposure to overreliance on recruitment of students from particular countries continues to be a concern,” it added.

Nigeria recorded the largest decline in applications with 25,897, representing a fall of 44.6 per cent, followed by Bangladesh with a 41.2 per cent drop. Other countries with significant reductions in applications include Sri Lanka (down 23.7 per cent), India (down 20.4 per cent), and Malaysia (down 12.7 per cent).

Visa restrictions introduced at the start of the year to prevent most international students from bringing dependants to the UK are seen as one cause of the declining application numbers.

The Migration Advisory Committee estimates the ban on dependants could lead to a fall of 120,000 in annual migration, and Home Office data shows 62,600 fewer students and dependants applied for study visas in the first six months of 2024 compared to the same period last year.

Figures released on Thursday showed the decline has escalated, with 405,000 applications for UK study visas in the year to October, which was down from 499,000 the year before, representing a fall of around 19 per cent.

Top 10 UK universities – in pictures

Office for Students estimated that about 100 institutions failed to achieve their UK undergraduate recruitment forecasts for 2024-25. “We estimate that around 150 providers may have failed to achieve forecast levels of international recruitment, with those providers that focus on postgraduate taught courses relying on international student growth being of particular concern,” said the report.

The regulator’s modelling suggests there will be a net reduction in annual income across the sector of £3.4 billion by 2025-26 – compared to a previously forecasted increase of £1.8 billion. The figures include the additional NI contributions costing the sector £133 million in 2024-25 and then £430 million each year from 2025-26.

“Our modelling suggests that the number of providers in deficit could be three times the number shown in providers’ 2025-26 forecasts, if they do not take mitigating action or such action is ineffective. This means that, if the modelling holds, the average provider could face more significant financial challenges than anticipated,” says the report.

British universities have repeatedly appealed to the government to lift visa restrictions on international students in a bid to save the struggling institutions.

The previous government raised the cap on university tuition fees in England to £9,000 ($11,650) a year in 2012 but it has been fixed at £9,250 since 2017. It will rise by £285 to £9,535 per year for courses starting after April 2025.

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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
Analysis

Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more

The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
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  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
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Artist: Coldplay

Label: Parlophone/Atlantic

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Rating: 3/5

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

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7.30pm: Maiden (TB) Dh80,000 1,600m​​​​​​​
Winner: Dubai Canal, Harry Bentley, Satish Seemar.

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UAE currency: the story behind the money in your pockets
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Electoral College Victory

Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

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Thursday (All UAE kick-off times)

Sevilla v Real Betis (midnight)

Friday

Granada v Real Betis (9.30pm)

Valencia v Levante (midnight)

Saturday

Espanyol v Alaves (4pm)

Celta Vigo v Villarreal (7pm)

Leganes v Real Valladolid (9.30pm)

Mallorca v Barcelona (midnight)

Sunday

Atletic Bilbao v Atletico Madrid (4pm)

Real Madrid v Eibar (9.30pm)

Real Sociedad v Osasuna (midnight)

Tips to stay safe during hot weather
  • Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
  • Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
  • Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
  • Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
  • Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
  • Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
  • Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
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Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

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Earth under attack: Cosmic impacts throughout history

4.5 billion years ago: Mars-sized object smashes into the newly-formed Earth, creating debris that coalesces to form the Moon

- 66 million years ago: 10km-wide asteroid crashes into the Gulf of Mexico, wiping out over 70 per cent of living species – including the dinosaurs.

50,000 years ago: 50m-wide iron meteor crashes in Arizona with the violence of 10 megatonne hydrogen bomb, creating the famous 1.2km-wide Barringer Crater

1490: Meteor storm over Shansi Province, north-east China when large stones “fell like rain”, reportedly leading to thousands of deaths.  

1908: 100-metre meteor from the Taurid Complex explodes near the Tunguska river in Siberia with the force of 1,000 Hiroshima-type bombs, devastating 2,000 square kilometres of forest.

1998: Comet Shoemaker-Levy 9 breaks apart and crashes into Jupiter in series of impacts that would have annihilated life on Earth.

-2013: 10,000-tonne meteor burns up over the southern Urals region of Russia, releasing a pressure blast and flash that left over 1600 people injured.

Updated: November 15, 2024, 12:00 PM`