Since the start of the coronavirus pandemic there have been concerns about the financial impact on universities. Much of this has focussed on the potential loss of international students, but there could also be losses in income from lower home student numbers, a drop in research work and less revenue from accommodation, catering and conferencing. What are the size of these impacts and what has the Government done to support the sector?
Download the full report
- This excludes 4.9 billion of costs due to a pension accounting adjustment.
- The latest (April 2019) assessment of the sector in England by the Office for Students (OfS) found that overall the financial health was reasonable.
- There was, however, considerable variation between providers and some had ambitious assumptions about growth in student numbers.
- Much of the focus of the financial impact of the pandemic on university finances has been on the loss of international (non-EU) students.
- International students fees provide a large and increasing share of providers total income and universities gain a surplus or profit on teaching international students.
- In recent years home student numbers have remained static and the only growth in overall student numbers has been driven by international students.
- The UK higher education sector had almost 350,000 international students in 2018/19 or 14% of the 2.4 million students at UK universities.
- On 4 May the Government responded to the sectors calls for a bailout and announced a support packagefor universities and students.
- A recent report from the Institute for Fiscal Studies (IFS) modelled the overall long-run losses from all aspects of the pandemic at 11 billion.