In response to the Office for Students’ update on the financial sustainability of the higher education sector, Vanessa Wilson, CEO of University Alliance said:
“This report is a stark illustration of what we already know: a decade of frozen tuition fees and rising costs, coupled with recent unhelpful changes in immigration policy have severely undermined the financial stability of universities.
Our universities will continue to reforecast, innovate and take all possible steps to protect the quality of their offer to students while ensuring their sustainability. Currently, however, they are operating with one hand tied behind their back. We need support from government to urgently address the issues that are holding us back.
There are clear steps government could take to help universities to navigate the financial storm without additional cost to the taxpayer. For example, adjusting the timelines when universities actually receive the tuition fee, or giving universities who are currently locked into highly costly pension schemes such as the Teachers’ Pension Scheme the flexibility to set their own pension arrangements.
Of course, it is not only universities that are struggling, our students are struggling too. Whilst the recently announced uplift in the student maintenance loan is welcome, for many students it will barely touch the sides. Government must urgently reintroduce means-tested maintenance grants for the students who need them most.”
