Khaberni - The higher education sector in Britain is facing one of its most critical financial crises in decades, with official warnings that 50 universities could face the risk of bankruptcy within one to two years.
This was reported in an article published by the Telegraph, prepared by its education editor Bobby Wood, clarifying that Susan Labworth, the CEO of the Office for Students (OfS), announced in front of the Education Committee in the House of Commons that 24 educational institutions were listed in "the highest risk category".
The report indicates that this classification means these institutions could collapse in the next 12 months, while another 26 institutions are threatened over the next few years.
20 Big Universities
Wood mentioned that although most of the struggling institutions are small, around 20 major universities - including 7 listed in "the highest risk category" - face real financial threats, though their names were not disclosed.
Despite the seriousness of the numbers - the author says - Labworth emphasized that the Office does not expect chaotic collapses, confirming that the risk assessment adopted a conservative approach to ensure precise monitoring and early intervention.
However, the chair of the parliamentary committee, Helen Hayes, described the situation as serious even by the government's own standards.
The report views the current financial crisis as directly linked to the long-term freezing of higher education fees, in addition to a sharp decline in the number of foreign students, who many universities rely on to compensate for local funding shortfalls.
Financial Deficit for Many Universities
Last week, the Office for Students warned that 45% of educational institutions will record a financial deficit this year, and this situation has pushed many major universities to adopt extensive austerity measures, including layoffs of thousands of employees and mergers of institutions to avoid bankruptcy.
According to the report, prominent universities such as Nottingham have announced the cancellation of entire specialties, including modern languages, music, and theology, while Cardiff University reconsidered closing its nursing program fearing a shortage of health personnel.
Overall, the Universities and Colleges Union estimated that more than 15,000 jobs were eliminated in a single year.
Impact of the Decline in Foreign Students
Moreover, the British government announced a gradual increase in tuition fees, which may reach up to £12,000 for a bachelor's degree by the end of the decade. However, this increase will be affected by a new 6% tax on foreign students, which will be used to fund maintenance grants for local students.
The Minister for Universities anticipated a limited impact on the flow of international students but emphasized the necessity of sharing resources among universities to reduce costs.
Amid these challenges - the author adds - the Office for Students has called on universities to adopt a collaborative approach rather than competition, pointing out that the merger of the universities of Kent and Greenwich is an example of possible solutions.
For its part, the Ministry of Education affirmed that it is working to restore stability to the sector through reforms that include redirecting the role of the Office for Students and raising fee limits to ensure greater financial sustainability for universities.
