London Daily

Focus on the big picture.
Saturday, Nov 08, 2025

UK: Universities warn of going bust without emergency funds

Universities across the UK are calling for emergency funding of at least £2bn, warning some institutions will go bust without it.

Universities UK says the coronavirus pandemic is threatening to sharply cut overseas student numbers and put universities in financial danger.

They are asking for controls on student numbers in each university, to keep fee income at similar levels to last year.

Universities are promising to honour any offers already made to students.

"Without government support, some universities would face financial failure, others would come close to financial failure and be forced to reduce provision," says a letter from higher education leaders to ministers across the UK.

Alistair Jarvis, chief executive of Universities UK, says the proposals would help universities to "weather the very serious financial challenges posed by Covid-19".

He says academic researchers have made a "huge contribution" to tackling the coronavirus pandemic - and their expertise will be needed in the "recovery of the economy and communities following the crisis".

They are calling for an extra £2bn in research funding and on top of that to provide emergency loans for universities that faced "significant income losses".

"Targeted support" should be available to protect strategically important subjects such as science and medicine, say the industry leaders.


This would be in response to cash pressures from the pandemic:

Universities receive almost £7bn in fees from overseas students - and there are fears that their numbers could be much reduced this autumn
The university sector says it has already lost £790m in cancelled business activities, such as conferences, catering and student accommodation
There is also uncertainty about whether campuses will be able to re-open in the autumn and whether many UK students will defer entry this year
There have been warnings of unprecedented "volatility" in this year's admissions - which, if left unchecked, could see some universities expanding but others left with too few students to be financially viable.

This is a particular risk for universities in England and Wales, which are highly dependent on tuition fee income.

In response, Universities UK is asking for controls on the number of students each university in England and Wales can recruit this year, keeping them to levels expected before the coronavirus outbreak, to stop financially unsustainable swings in numbers.

The scale of concern was suggested in an internal email from a Russell Group university seen by the BBC this week, which warned the university could lose a quarter of its income next year.

The letter from Universities UK to ministers says that to provide "stability" for students currently applying, all offers already made would have to be honoured if students made the required grade.

There is also a call to push back by a year the point at which European Union students are categorised as overseas students, when they will face higher fees and visa restrictions.

Jo Grady of the UCU lecturers' union said the plan was a "piecemeal approach that fails to recognise the size of the problem, or the damage we risk doing to our academic capacity".

Eva Crossan Jory, vice president of the National Union of Students, said any extra funding must support students, "especially considering the mounting discontent that courses are not being delivered as promised and demands for refunds".

She backed calls for the government to "step in" to protect higher education, but said it should include "refunding or all or part of the fees".

"The scale of the financial challenges facing higher education institutions are clearly very serious", said Scotland's Deputy First Minister John Swinney.

He promised to work closely with universities to help them "emerge from this crisis".

A Welsh government spokesman said universities had been "at the forefront of the battle against the coronavirus" and ministers would work to ensure they had the "necessary investment".

In England, a Department for Education spokeswoman said: "The outbreak poses significant challenges to the sector and the government is working closely with universities to understand the financial risks and implications they might face at this uncertain time."

Newsletter

Related Articles

0:00
0:00
Close
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
UK Report Backs Generational Smoking Ban Ahead of Tobacco & Vapes Bill Review
UK’s Domino’s Pizza Group Reports Modest Like-for-Like Sales Growth in Q3
UK Supplies Additional Storm Shadow Missiles to Ukraine as Trump Alleges Russian Underground Nuclear Tests
High-Profile Broodmare Puca Sells for Five Million Dollars at Fasig-Tipton ‘Night of the Stars’
Wilt Chamberlain’s One-of-a-Kind ‘Searcher 1’ Supercar Heads to Auction
Erling Haaland’s Remarkable Run: 13 Premier League Goals in 10 Matches and Eyes on History
UK Labour Peer Warns of Emerging ‘Constituency for Hating Jews’ in Britain
UK Home Secretary Admits Loss of Border Control, Warns Public Trust at Risk
President Trump Expresses Sympathy for UK Royal Family After Title Stripping of Prince Andrew
Former Prince Andrew to Lose His Last Military Title as King Charles Moves to End His Public Role
King Charles Relocates Andrew to Sandringham Estate and Strips Titles Amid Epstein Fallout
Two Arrested After Mass Stabbing on UK Train Leaves Ten Hospitalised
Glamour UK Says ‘Stay Mad Jo x’ After Really Big Rowling Backlash
Former Prince Prince Andrew Faces Possible U.S. Congressional Appearance Over Jeffrey Epstein Inquiry
UK Faces £20 Billion Productivity Shortfall as Brexit’s Impact Deepens
UK Chancellor Rachel Reeves Eyes New Council-Tax Bands for High-Value Homes
UK Braces for Major Storm with Snow, Heavy Rain and Winds as High as 769 Miles Wide
U.S. Secures Key Southeast Asia Agreements to Reshape Rare Earth Supply Chains
US and China Agree One-Year Trade Truce After Trump-Xi Talks
BYD Profit Falls 33 % as Chinese EV Maker Doubles Down on Overseas Markets
US Philanthropists Shift Hundreds of Millions to UK to Evade Regulatory Uncertainty in Trump Era
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
×