Latest news with #OfficeforStudents
Epoch Times
23-05-2025
- Business
- Epoch Times
Government Reduces Funding, Tells Universities to Prioritise STEM Over Media Studies
Education Secretary Bridget Phillipson has told the Office for Students (OfS) that government funding should be diverted away from subjects like media studies and towards the sciences. The minister made the recommendations on Monday as she told the sector regulator that the Strategic Priorities Grant would total £1.348 billion for financial year 2025/26, which is £108 million less than last year. The recurrent grant, distributed by the OfS, provides support to universities in the delivery of strategically important, high-cost subjects, such as the sciences, technology, engineering, and mathematics (STEM). She also confirmed that the capital grant would be £84 million next year, almost half the £150 million annual average allocated as part of a £450 million agreed capital grant budget for the previous three years. In her High Priority Areas In more These include very high-cost STEM subjects; nursing, midwifery, and other allied health professions such as in radiology and emergency services; and other high-cost, strategically-important courses. Related Stories 5/8/2025 10/25/2024 The minister said this focus will support the future skills needed and the government's industrial strategy for economic growth. She told the universities regulator: 'Prioritising in this way does, however, involve making compromises elsewhere; for this reason, I am asking you to reprioritise high-cost subject funding away from media studies, journalism, publishing and information services courses. 'While I recognise that these courses are valued by the universities that deliver them and the students that take them, my decision is informed by the challenging fiscal context we have inherited.' The OfS's director for fair access and participation, John Blake, said it was continuing to consider its approach to how it uses its funding powers, and had received feedback from across the sector following a recent call for evidence. 'We'll publish that feedback as part of our continuing work with government to review and reform our approach to funding,' Blake said. 'Another Blow to Universities' Tim Bradshaw, chief executive of the Russell Group, said in a statement: 'The Strategic Priorities Grant 'savings' announced today are another blow to universities already facing stark financial challenges. Let's call them what they are: these are cuts.' He said that while he appreciated efforts to protect funding on high-cost subjects like medicine and nursing, 'the flat cash settlement for those subjects still represents a real-terms cut, with other areas cut further.' Students and family pose for photographs ahead of their graduation ceremony at the Royal Festival Hall in London on July 15, UK (UUK) told The Epoch Times in a statement that the university system 'is under extraordinary financial pressure,' with Monday's announcement 'making an already difficult situation worse.' Chief Executive of UUK Vivienne Stern said, 'Funding per student has declined by about a third in the last decade. International student recruitment has fallen, national insurance and pension contributions to the teachers' pension scheme have gone up, and research grants cover less than 70 percent of the actual costs.' Stern said that UUK is determined to ensure that universities continued to deliver high quality education and research and economic growth. 'But we need government to work with us to stabilise the ship and put it back on an even keel. That is the opposite of what happened [on Monday],' she added. 2 in 5 Facing Deficits Universities are under financial strain and many institutions have already undertaken action to cut costs, including staff redundancies, merging or closing programmes, and shuttering departments. Two weeks ago, the OfS The regulator's analysis had identified several factors affecting higher education institutions' income, including a lower than expected recruitment of overseas students, the declining real-terms value of tuition fees from UK undergraduates, rising maintenance and capital costs, and broader inflation-driven pressures on operating expenses. Phillipson said at the time, 'These concerning figures are further evidence demonstrating why the She continued: 'The dire situation we inherited has meant this government must take tough decisions to put universities on a firmer financial footing, so they can deliver more opportunity for students and growth for our economy through our Plan for Change. 'I asked the Office for Students to refocus their efforts on
Yahoo
23-05-2025
- Business
- Yahoo
University fined for franchised course monitoring
A university has been fined £115,000 by the higher education regulator for failing to effectively address risks associated with its franchised courses. The Office for Students (OfS) identified "serious failures" in the arrangements Leeds Trinity University (LTU) had in place to oversee its sub-contractual partnerships. The inquiry found an "overarching risk" that LTU was unable to "properly ensure quality" with the arrangements or respond to concerns when raised. The university's vice-chancellor said "rapid growth in our partnerships created pressures that our systems and oversight processes were not fully equipped to manage at the time". External organisations can operate in partnership with registered universities to deliver courses on their behalf. However, the watchdog previously warned it would intervene when the use of franchised providers placed the interests of students or taxpayers "at risk". The OfS investigation looked at franchised provision at LTU between 2022 and 2024. It found LTU's oversight arrangements were "not adequate" to ensure risks at partners relating to admissions practices and academic misconduct were identified. The watchdog's investigation concluded that LTU "did not properly consider" the impact of a decision it took to pilot lowering English language requirements for students who applied to study at its franchised partners between 2023 and 2024. "It did not ensure arrangements were in place to enable these students to succeed," the report said. The OfS said LTU accepted it breached the watchdog's regulatory requirements relating to management and governance, and had agreed to pay the monetary penalty of £115,000. The regulator reduced the penalty by 30% in recognition that LTU's ''co-operation with our investigation has been positive and constructive'', and it also reflected early settlement, and that the university proactively undertook its own inquiries into the concerns raised and took steps to address them. Philippa Pickford, director of regulation at the OfS, said: "The rapid expansion of courses delivered through sub-contractual partnerships further increased risks for students and taxpayers." The university said it "fully accepted" the investigation's conclusions. Prof Charles Egbu, LTU vice-chancellor, said: "We are unwavering in our long-held commitment to widening participation and increasing access to higher education. "We welcome the OfS's acknowledgment of the proactive steps we have taken and the significant progress that Leeds Trinity has made to strengthen the oversight of our sub-contractual arrangements." Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North. Office for Students Leeds Trinity University
Epoch Times
15-05-2025
- Business
- Epoch Times
2 in 5 Universities Face Deficits This Year, Higher Education Regular Says
The Office for Students (OfS) said that the financial performance of universities and colleges is forecast to decline in 2024/25 for the third consecutive year. Analysis by the regulator published on Thursday found that 43 percent of higher education (HE) institutions in England are facing a deficit in 2024/25. The OfS said that the reason for the continued deterioration is lower than anticipated levels of recruitment for international students, for whom universities can charge higher fees. The watchdog However, the OfS highlighted universities' 'overreliance on fee income from international students' as a financial risk, noting heightened vulnerability where recruitment is concentrated heavily in a single country. The regulator's analysis also identified several factors affecting higher education institutions' income, including the declining real-terms value of tuition fees from UK undergraduates, rising maintenance and capital costs, and broader inflation-driven pressures on operating expenses. 'Optimistic' Recruitment Projections Universities are under financial strain and many institutions have already undertaken action to cut costs, including staff redundancies, merging or closing programmes, and shuttering departments. Related Stories 10/25/2024 7/26/2024 The OfS's director of regulation, Philippa Pickford, said the watchdog does not expect to see multiple university closures in the short term, but the medium-term pressures are significant and complex. The regulator also suggested that universities cannot rely on recruitment alone to fix their financial situations. The annual report noted that universities' 'optimistic projections' predict student growth of 26 percent between 2023/24 and 2027/28, with an increase in overseas students of 19.5 percent. Pickford said: 'While institutions are working hard to navigate this challenging situation, we remain concerned that predictions of future growth are often based on ambitious student recruitment that cannot be achieved for every institution. 'Our analysis shows that if the number of student entrants is lower than forecast in the coming years, the sector's financial performance could continue to deteriorate, leaving more institutions facing significant financial challenges.' Responding, Education Secretary Bridget Phillipson said, 'These concerning figures are further evidence demonstrating why the A graduation ceremony at the University of Suffolk in Ipswich, England, on Oct. 19, 2015. Chris Radburn/PA Wire She continued: 'The dire situation we inherited has meant this government must take tough decisions to put universities on a firmer financial footing, so they can deliver more opportunity for students and growth for our economy through our Plan for Change. 'I asked the Office for Students to refocus their efforts on monitoring financial sustainability last year. Further reforms are needed to fix the foundations of higher education, and universities must do more to make their finances work.' 'Grave Risk' to Viability The OfS's report follows a group of cross-party MPs On Wednesday, the Education Committee sent a letter to Phillipson asking what work the government is doing to support HE, including in the event that a university faces closure. The committee said it had received a growing number of reports from universities experiencing 'intense financial pressure' with a significant number announcing redundancies and internal restructuring. They said they had heard during evidence sessions that the financial state of the sector was down to various factors, including the freezing of home tuition fees for most of the last 13 years, the recent reduction in international students as a result of the previous Conservative government's immigration policy, and increases in employers' national insurance. Committee Chairwoman Helen Hayes 'There are currently a number of very serious challenges facing the higher education sector which, if left unchecked, present a grave risk to the financial viability of some institutions and courses, to the breadth and diversity of opportunities available at UK universities, to the local economy in places where a university is an anchor institution and major employer, and ultimately to the international reputation and standing of the UK,' she said. Department Closures Earlier this week, Universities UK, the membership body for the nation's HE sector, Around half (49 percent) of university leaders said they have closed courses to reduce costs, more than double (24 percent) in the last year. More than half (55 percent) said they have had to consolidate courses (up from 23 percent last year), and 46 percent have cut optional modules (up from 29 percent). Nearly one in five (18 percent) of universities have closed entire departments, double on the number last year. PA Media contributed to this report.
Powys County Times
12-05-2025
- Business
- Powys County Times
Government plans could worsen financial challenges at universities, experts warn
The Government's plans for immigration could deter international students from coming to the UK and exacerbate the financial challenges faced by British universities, sector leaders have warned. Under the White Paper proposals, graduate visas will be reduced to 18 months, and a new levy on income that universities generate from international students could be introduced. It also proposes strengthening the requirements that sponsoring institutions must meet in order to recruit international students. The White Paper said there have been problems involving 'misuse and exploitation of student visas', and 'too many graduates' who stay in the UK after their studies are not moving into graduate level jobs. University leaders have been warning of significant financial concerns caused by a drop in the number of international students – who can be charged higher tuition fees – following restrictions introduced by the former Conservative government, as well as frozen tuition fees paid by domestic students. Last week, an analysis by the Office for Students (OfS), the higher education regulator, projected that more than two in five (43%) universities and colleges in England were expected to be in deficit this year. Vivienne Stern, chief executive of Universities UK (UUK), said: 'Following years of frozen fees, inadequate research funding and a rapid downturn in international students, the current operating environment is very challenging. 'We would urge Government to think carefully about the impact that a levy on international student fees will have on universities and the attractiveness of the UK as a study destination.' The White Paper noted that overseas students at UK universities generated around £20.65 billion in exports through living expenditure and tuition fees in 2021, and it said 'it is right that these benefits are shared'. The Government will explore introducing a levy on higher education provider income from international students to be reinvested into the higher education and skills system, it added. Under the proposals, the graduate visa route, which allows overseas students to live and work in the UK for up to two years after their studies, will remain in place but it will be reduced to 18 months. Jo Grady, general secretary of the University and College Union (UCU), said: 'This anti-growth white paper is straight out of the Reform playbook. 'With higher education already under severe financial pressure, any further restrictions which deter international students from coming to the UK could lead to universities going under.' She added: 'The Home Office needs to stop imposing arbitrary restrictions that prevent international students and staff from coming to the UK, driving economic growth and enriching local communities. 'Its failure to do so will harm universities, the country and our global standing.' Vanessa Wilson, chief executive of University Alliance, said: 'The proposals to introduce a levy on international student fee income are underbaked. 'It is not clear how this levy would be used, or how it would be protected for skills, and there are serious risks inherent in deliberately cutting into the main source of income for universities – some of the UK's largest employers – when there are very few other levers they can pull to remain financially sustainable.' Current proposals are understood to be looking at a 6% levy on universities' income on international students. Nick Hillman, director of the Higher Education Policy Institute (Hepi) think tank, called the proposed levy on international students 'deeply controversial'. He said: 'A levy will be seen by many as a tax on a very successful UK export sector. 'There will also be concerns that some of the money raised will be siphoned off by the Treasury – just as has happened with the Apprenticeship Levy.' Mr Hillman added: 'Some of the other ideas on students and graduates included in the white paper are also problematic. 'Reducing the Graduate Route visa from two years to 18 months is, admittedly, not as bad as abolishing it. 'But employers who recruit international students using the Graduate Route wanted to see an increase to three or four years, rather than a reduction, as new employees take months to become productive members of the workforce.' Rosalind Gill, head of policy at the National Centre for Universities and Business (NCUB), said: 'To drive long-term economic growth, the UK must foster a robust, diverse, and globally connected university sector, alongside creating an environment for innovative companies to flourish. 'The Immigration Bill poses major risks to this vision. 'Its further restrictions on Graduate Visas, and a new international student levy, will jeopardise the sustainability and global connectivity of UK universities.' Rain Newton-Smith, chief executive of the Confederation of British Industry (CBI), said: 'Policy changes that risk making the UK a less attractive place to study or increase costs confronting universities will have knock-on impacts for the competitive strength of UK higher education as a growth export, and young people's ability to access degree-level education at home. 'These trade-offs need to be considered if the Government is serious about developing domestic talent and driving growth.'
South Wales Argus
12-05-2025
- Business
- South Wales Argus
Government plans could worsen financial challenges at universities, experts warn
Under the White Paper proposals, graduate visas will be reduced to 18 months, and a new levy on income that universities generate from international students could be introduced. It also proposes strengthening the requirements that sponsoring institutions must meet in order to recruit international students. The White Paper said there have been problems involving 'misuse and exploitation of student visas', and 'too many graduates' who stay in the UK after their studies are not moving into graduate level jobs. University leaders have been warning of significant financial concerns caused by a drop in the number of international students – who can be charged higher tuition fees – following restrictions introduced by the former Conservative government, as well as frozen tuition fees paid by domestic students. Last week, an analysis by the Office for Students (OfS), the higher education regulator, projected that more than two in five (43%) universities and colleges in England were expected to be in deficit this year. Vivienne Stern, chief executive of Universities UK (UUK), said: 'Following years of frozen fees, inadequate research funding and a rapid downturn in international students, the current operating environment is very challenging. 'We would urge Government to think carefully about the impact that a levy on international student fees will have on universities and the attractiveness of the UK as a study destination.' The White Paper noted that overseas students at UK universities generated around £20.65 billion in exports through living expenditure and tuition fees in 2021, and it said 'it is right that these benefits are shared'. The Government will explore introducing a levy on higher education provider income from international students to be reinvested into the higher education and skills system, it added. Under the proposals, the graduate visa route, which allows overseas students to live and work in the UK for up to two years after their studies, will remain in place but it will be reduced to 18 months. Jo Grady, general secretary of the University and College Union (UCU), said: 'This anti-growth white paper is straight out of the Reform playbook. 'With higher education already under severe financial pressure, any further restrictions which deter international students from coming to the UK could lead to universities going under.' She added: 'The Home Office needs to stop imposing arbitrary restrictions that prevent international students and staff from coming to the UK, driving economic growth and enriching local communities. 'Its failure to do so will harm universities, the country and our global standing.' Vanessa Wilson, chief executive of University Alliance, said: 'The proposals to introduce a levy on international student fee income are underbaked. 'It is not clear how this levy would be used, or how it would be protected for skills, and there are serious risks inherent in deliberately cutting into the main source of income for universities – some of the UK's largest employers – when there are very few other levers they can pull to remain financially sustainable.' Nick Hillman, director of the Higher Education Policy Institute (Hepi) think tank, called the proposed levy on international students 'deeply controversial'. He said: 'A levy will be seen by many as a tax on a very successful UK export sector. 'There will also be concerns that some of the money raised will be siphoned off by the Treasury – just as has happened with the Apprenticeship Levy.' Mr Hillman added: 'Some of the other ideas on students and graduates included in the white paper are also problematic. 'Reducing the Graduate Route visa from two years to 18 months is, admittedly, not as bad as abolishing it. 'But employers who recruit international students using the Graduate Route wanted to see an increase to three or four years, rather than a reduction, as new employees take months to become productive members of the workforce.' Rosalind Gill, head of policy at the National Centre for Universities and Business (NCUB), said: 'To drive long-term economic growth, the UK must foster a robust, diverse, and globally connected university sector, alongside creating an environment for innovative companies to flourish. 'The Immigration Bill poses major risks to this vision. 'Its further restrictions on Graduate Visas, and a new international student levy, will jeopardise the sustainability and global connectivity of UK universities.' Rain Newton-Smith, chief executive of the Confederation of British Industry (CBI), said: 'Policy changes that risk making the UK a less attractive place to study or increase costs confronting universities will have knock-on impacts for the competitive strength of UK higher education as a growth export, and young people's ability to access degree-level education at home. 'These trade-offs need to be considered if the Government is serious about developing domestic talent and driving growth.'
