University Funding Crisis Deepens as Student Support Drops by Over a Third
Students in England are now paying £9,535 in tuition fees for the current academic year following the first fee increase in over a decade, while universities face a deepening financial crisis according to new analysis.
The Shrinking Funding Landscape
Universities UK (UUK), representing higher education leaders, has revealed that funding for each student in England has plummeted to just two-thirds of the level available a decade ago. After accounting for inflation, the analysis shows that today's undergraduates receive a combined £6.4 billion less in real terms than students pursuing the same degrees in the 2015-16 academic year.
The dramatic reduction explains why many English universities are now struggling with significant budget deficits. With income from domestic tuition fees failing to keep pace with rising costs, institutions have become increasingly dependent on revenue from international students to maintain operations.
Government Measures and Institutional Concerns
Education Secretary Bridget Phillipson authorised the tuition fee increase to £9,535 for the current academic year and announced that fees would continue to rise with inflation for the next two years. This adjustment is projected to push undergraduate fees to approximately £9,900 per year by autumn 2026.
However, university leaders argue that these increases will be effectively cancelled out by government plans to introduce a new levy on international student fees. While the inflation-linked fee rise is expected to generate an additional £440 million annually, the proposed international student tax is projected to remove £780 million in yearly revenue from university budgets.
Vivienne Stern, UUK's chief executive, described the situation as "beyond disappointing," stating: "The decision to increase fees in England in line with inflation was brave, and the right thing to do. It is the opposite of helpful that the government plans to remove more than this brings in through a new tax on international students."
Concrete Consequences for Universities and Courses
The financial pressure has already forced institutions to make difficult decisions about their academic offerings. UUK's survey of member institutions found that:
- 49% have closed courses
- 18% have closed departments entirely
- 80% are considering cuts to research spending
- One in three universities forecast financial deficits this academic year
Recent announcements include the Universities of Nottingham and Leicester considering closure of multiple courses, including modern foreign language degrees. Bradford University is shutting its chemistry, biomedical sciences, and highly regarded film and television courses.
Joanna Burton, head of higher education policy at the Russell Group, echoed concerns, urging the government to "rethink the proposed international student levy, a tax on universities that would add further burdens and restrict investment in students, research and communities."
A Department for Education spokesperson defended the government's approach, stating: "We have taken action to put the sector on a secure financial footing, including committing to raise the maximum cap on tuition fees annually and refocusing the Office for Students to support universities to face the challenges of the future."
