Universities: Finance

(asked on 12th February 2019) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, pursuant to the oral contribution of the Minister of State for Universities, of 11 February 2019, Official Report, column 634, what estimate his Department has made of the number of higher education institutions that may exit the market.


Answered by
Chris Skidmore Portrait
Chris Skidmore
This question was answered on 18th February 2019

The department has not made an estimate of the number of higher education institutions that may exit the market.

In the new higher education (HE) regulatory framework, the Office for Students (OfS) has responsibilities to monitor and assess the financial viability of registered providers and in particular to protect the interests of students. The OfS may take action where it identifies particular risks to a provider’s financial viability. The department has also given the OfS powers to ensure that registered providers have plans in place to protect their students, via appropriately constructed student protection plans. Should the provider be facing difficulties, the plan may need to be strengthened in a tailored way before OfS can agree it.

It is the responsibility of Vice-Chancellors and the leaders of higher education providers to ensure their institutions are financially viable.

The terms of reference of the review of post-18 education and funding include a focus on ensuring choice and competition across a joined-up post-18 education and training sector. The review will look at how it can support a more dynamic market whilst maintaining the financial sustainability of a world–class higher education and research sector.

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