(London) Despite raising tuition fees and implementing cost-cutting measures, nearly half of higher education institutions in the UK are projected to face financial deficits this year.
According to new analysis from the Office for Students (OFS), 124 universities — about 45% of those assessed — may enter deficit in the 2025–2026 academic year. This marks a sharp increase from the 34% reported in May’s forecast.
The report also notes that 45 institutions may have less than 30 days of available cash flow within the next year, indicating potential liquidity issues for roughly one in six universities.
Targeting international students?
UK Education Secretary Bridget Phillipson recently announced a permanent policy to link undergraduate tuition fees in England to inflation. She also proposed a 6% “surcharge” on international students’ tuition to subsidize domestic student funding.
This represents the most significant reform to the UK higher-education funding model in over a decade and has sparked strong opposition from universities and international student groups. Industry experts argue that although inflation-linked tuition may alleviate some financial pressure, it does not fix the underlying structural challenges.
