Beautiful Virgin Islands

Monday, Jul 14, 2025

The coronavirus crisis is pushing 13 UK universities towards insolvency, study says

The coronavirus crisis is pushing 13 UK universities towards insolvency, study says

Social distancing measures, travel restrictions and lockdowns have tested the ability of universities to survive without students.. The institutions at higher risk of collapse are those with a large share of international students and those with significant pension obligations, the IFS said.
Thirteen universities, or colleges, in the U.K. are at risk of going bankrupt as the coronavirus pandemic hits their finances and challenges the entire sector, a study by Institute for Fiscal Studies warned Monday.

Social distancing measures, travel restrictions and lockdowns have tested the ability of universities to survive without students. In the wake of the pandemic, many moved their teaching online and some do not have plans to return to their facilities until the summer of 2021.

There’s also uncertainty as to whether non-U.K. resident students will still be looking to learn abroad and if colleges will be able to organize conferences and get a steady income from student accommodation.

“The total income of the U.K. university sector is around £40 billion ($50 billion) per year, or around 1.8% of national income,” the IFS said in a study Monday. “Much of this income is now at risk due to the Covid-19 outbreak.”

As a result, the institute forecast under its main scenario that 13 colleges could go bankrupt without a government bailout or debt restructuring.

The institutions at higher risk of collapse are those with a large share of international students and those with significant pension obligations, the IFS said.

“These tend to be higher-ranking institutions as well as postgraduate and music and arts institutions,” the report said.

However, the U.K. government has signaled that there will not be a bailout for the sector, and instead gave universities the green light to charge student their full fees for the current academic year even if their lectures were taking place online. The government also said it would bring forward research funding.

Under its main scenario, the IFS assumed that only half of the usual number EU and international students would join U.K. universities this Fall and that there would be 10% fewer UK-based students, with some postponing their entry to higher education. It also assumed that revenues from accommodation, catering and conferences was lost for the rest of the academic year.

“Our central estimate of total long-run losses is £11 billion or more than a quarter of income in one year,” the institute said.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
×