UK Universities Face Third Consecutive Year of Income Decline
UNITED KINGDOM — May 31, 2025 Universities in England are grappling with a worsening financial crisis as income falls for the third consecutive year. A report from the Office for Students (OfS) highlights that nearly half of institutions are expected to be in deficit next year, with many cutting costs by reducing staff, academic programs, and infrastructure spending.
The decline is largely attributed to a sharp drop in international student recruitment, which has historically helped offset financial shortfalls caused by capped domestic tuition fees. New figures show that overseas student enrollment for 2024–25 is projected to be 21% lower than previous estimates, driven by post-Brexit visa restrictions and tighter immigration policies.
To mitigate losses, universities are selling off assets, with more than £400 million worth of land and property expected to be liquidated this year. The University and College Union (UCU) warns that the financial strain has already led to 10,000 job losses across the sector.
Despite the bleak outlook, regulators insist that widespread university closures are unlikely in the short term. However, they urge institutions to take further action to stabilize their finances and adapt to the changing higher education landscape.