Khaberni - The higher education sector in Britain is experiencing one of its most severe financial crises in decades, with official warnings that 50 universities may face the risk of bankruptcy over a period extending between one and two years.
This was reported in an article published by the Telegraph, written by its education editor Bobby Wood, explaining that Susan Laborth, the CEO of the Office for Students (OfS), announced before the Commons Education Committee that 24 educational institutions have been listed in the "highest risk category".
The report states that this classification means that these institutions could potentially collapse within the next 12 months, while another 26 institutions are at risk over the next few years.
20 major universities
Wood mentioned that while most of the struggling institutions are small, about 20 large universities - including 7 placed in the "highest risk category" - face serious financial threats, though their names have not been disclosed.
Despite the seriousness of these figures - the author says - Laborth emphasized that the Office does not expect chaotic collapses, asserting that the risk assessment adopted a conservative approach to ensure meticulous 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 prolonged freezing of higher education fees, along with a sharp decline in the number of foreign students who many universities rely on to supplement local funding shortfalls.
Financial deficit for many universities
The Office for Students warned last week that 45% of educational institutions will record a financial deficit this year, and that this situation has led many major universities to implement significant austerity measures, including laying off thousands of employees and merging institutions to avoid bankruptcy.
According to the report, prominent universities like Nottingham have announced the cancellation of entire specialties, including modern languages, music, and theology, while Cardiff University backed down from closing its nursing program fearing a shortage of healthcare staff.
Overall, the Association of Universities and Colleges has estimated that more than 15,000 jobs were eliminated in one year.
Impact of Declining Foreign Student Numbers
Furthermore, the British government has announced a gradual increase in tuition fees that could reach up to 12,000 pounds sterling for a bachelor's degree by the end of the decade, but this increase will be affected by a new 6% tax imposed on foreign students, which will be used to fund maintenance grants for local students.
The Minister for Universities predicted that the impact on the influx of international students would be limited, but emphasized the need for sharing resources among universities to reduce costs.
In the face of these challenges - the author adds - the Office for Students has urged universities to adopt a collaborative approach instead of competing, citing the merger of the University of Kent and the University of Greenwich as an example of possible solutions.
For its part, the Ministry of Education confirmed that it is working on stabilizing the sector through reforms that include redirecting the role of the Office for Students and raising the maximum fee limits to ensure greater financial sustainability for universities.
