Fifty higher education providers in England are at risk of exiting the market within the next two to three years, the House of Commons education committee has been told. The warning came during an inquiry into university funding and the threat of insolvency.
The Office for Students (OfS) identified 24 institutions at more immediate risk, potentially forced to stop offering degree-awarding courses within 12 months. Of these, 17 are small providers and seven have over 3,000 students.
OfS chief executive Susan Lapworth sought to reassure MPs, stating the risk assessment was conservative and not necessarily indicative of disorderly exits. She noted smaller institutions are of greater concern.
The committee chair, Helen Hayes, revealed that during a confidential roundtable, MPs were told an unnamed provider could collapse before the end of the year. However, universities minister Jacqui Smith said she did not believe an imminent collapse was expected.
Smith defended the government's actions, including raising tuition fees in line with inflation and introducing a levy on international student fees to fund maintenance grants. A Department for Education spokesperson said the government is taking steps to put the sector on a secure financial footing.
