Beautiful Virgin Islands

Thursday, Feb 26, 2026

UK: Universities warn of going bust without emergency funds

Universities across the UK are calling for emergency funding of at least £2bn, warning some institutions will go bust without it.

Universities UK says the coronavirus pandemic is threatening to sharply cut overseas student numbers and put universities in financial danger.

They are asking for controls on student numbers in each university, to keep fee income at similar levels to last year.

Universities are promising to honour any offers already made to students.

"Without government support, some universities would face financial failure, others would come close to financial failure and be forced to reduce provision," says a letter from higher education leaders to ministers across the UK.

Alistair Jarvis, chief executive of Universities UK, says the proposals would help universities to "weather the very serious financial challenges posed by Covid-19".

He says academic researchers have made a "huge contribution" to tackling the coronavirus pandemic - and their expertise will be needed in the "recovery of the economy and communities following the crisis".

They are calling for an extra £2bn in research funding and on top of that to provide emergency loans for universities that faced "significant income losses".

"Targeted support" should be available to protect strategically important subjects such as science and medicine, say the industry leaders.


This would be in response to cash pressures from the pandemic:

Universities receive almost £7bn in fees from overseas students - and there are fears that their numbers could be much reduced this autumn
The university sector says it has already lost £790m in cancelled business activities, such as conferences, catering and student accommodation
There is also uncertainty about whether campuses will be able to re-open in the autumn and whether many UK students will defer entry this year
There have been warnings of unprecedented "volatility" in this year's admissions - which, if left unchecked, could see some universities expanding but others left with too few students to be financially viable.

This is a particular risk for universities in England and Wales, which are highly dependent on tuition fee income.

In response, Universities UK is asking for controls on the number of students each university in England and Wales can recruit this year, keeping them to levels expected before the coronavirus outbreak, to stop financially unsustainable swings in numbers.

The scale of concern was suggested in an internal email from a Russell Group university seen by the BBC this week, which warned the university could lose a quarter of its income next year.

The letter from Universities UK to ministers says that to provide "stability" for students currently applying, all offers already made would have to be honoured if students made the required grade.

There is also a call to push back by a year the point at which European Union students are categorised as overseas students, when they will face higher fees and visa restrictions.

Jo Grady of the UCU lecturers' union said the plan was a "piecemeal approach that fails to recognise the size of the problem, or the damage we risk doing to our academic capacity".

Eva Crossan Jory, vice president of the National Union of Students, said any extra funding must support students, "especially considering the mounting discontent that courses are not being delivered as promised and demands for refunds".

She backed calls for the government to "step in" to protect higher education, but said it should include "refunding or all or part of the fees".

"The scale of the financial challenges facing higher education institutions are clearly very serious", said Scotland's Deputy First Minister John Swinney.

He promised to work closely with universities to help them "emerge from this crisis".

A Welsh government spokesman said universities had been "at the forefront of the battle against the coronavirus" and ministers would work to ensure they had the "necessary investment".

In England, a Department for Education spokeswoman said: "The outbreak poses significant challenges to the sector and the government is working closely with universities to understand the financial risks and implications they might face at this uncertain time."

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
US Lawmakers Seek Briefing from UK Over Reported Encryption Order Directed at Apple
UK Business Secretary Calls on EU to Remove Trade Barriers Hindering Growth
Legal Pathways for Removing Prince Andrew from Britain’s Line of Succession Examined
PM Netanyahu welcome India PM Narendra Modi to Israel
Shadow Diplomacy: How Harry and Meghan’s Jordan Trip Undermines the Monarchy
Britain’s Channel Crisis: Paying Billions While the Boats Keep Coming
Downing Street’s Veteran Deception Scandal
UK HealthCare Expands ‘Food as Health’ Initiative Statewide to Tackle Chronic Illness in Kentucky
Leonardo Chief Says UK Set to Decide on New Medium Helicopter Programme
UK Slows Chagos Islands Agreement After Concerns Raised in Washington
European and UK Stock Markets Reach Fresh Highs as Banks and Miners Lead Rally
UK Government Insists Chagos Islands Negotiations Continue After Minister’s ‘Pause’ Remark
No Confirmed Deal for Engie to Acquire UK Power Networks Amid Market Speculation
UK Reaffirms Updated Entry Requirements for Travellers as of February 25, 2026
Lord Mandelson Condemns Arrest as Driven by ‘Baseless Suggestion’ He Would Flee Abroad
Former UK Ambassador Released on Bail Following Arrest in Epstein-Linked Investigation
UK Parliament Orders Release of Former Prince Andrew’s Government Vetting Files
Reddit Fined £14 Million by UK Regulator Over Failures in Age Verification Controls
UK Moves to Tighten Regulation of Netflix, Disney+ and Prime Video Under New Media Rules
British Woman Who Reported Rape in Hong Kong Faces Possible Prosecution
UK Sanctions New Zealand Insurer Maritime Mutual Following Allegations Over Russian Oil Cover
Reform MP Danny Kruger Condemns UK’s ‘Unregulated Sexual Economy’ in Call for Tougher Controls
UK Sanctions Russian ‘Illicit Oil Traders’ After Email Blunder Exposes Sanctions Evasion Network
Russia Amplifies Baseless Claims That UK and France Plan to Arm Ukraine with Nuclear Weapons
UK Imposes Sanctions on Two Georgian Television Channels Over Alleged Russian Disinformation
United States National Parks See Noticeable Drop in Visitors from Canada, U.K. and Australia
UK, Australia, Canada and New Zealand Escalate Sanctions on Russia as Ukraine War Marks Four Years
UK Economy Faces Acute Strain as Trump’s Global Tariff Reshapes Trade Landscape
UK Signals Retaliation Is Possible as New US Tariff Policy Threatens Trade Stability
British Police Arrest Former Ambassador Peter Mandelson in Epstein-Related Misconduct Probe
Australia Officially Supports Proposal to Remove Andrew Mountbatten-Windsor from Royal Succession
Diverging Polls Show Mixed Signals on UK Economic Revival as Confidence Remains Fragile
Spotify Expands AI-Driven ‘Prompted Playlists’ Feature to the United Kingdom and Other Markets
Greens and Reform UK Surge in Manchester By-Election, Threatening Labour’s Historic Stronghold
UK Businesses Push for Closer European Trade Links Amid Renewed US Tariff Uncertainty
Deloitte Global Overhaul Sparks Leadership Contest in the United Kingdom
University of Kentucky and Microsoft to Showcase Campus-Wide AI Innovation
UK Food System Faces Acute Vulnerability to Shocks, Experts Warn
Reform UK’s Proposed ICE-Style Deportation Scheme Triggers Sharp Backlash
U.S. Global Tariff Push Leaves Britain, Australia and Others Facing Higher Costs and Trade Strain
UK Police Officers Guarded 2010 Epstein Dinner Attended by Prince Andrew, Reports Say
US Trade Representative Affirms Commitment to Existing Tariff Agreements with UK and Other Partners
Activists at the Louvre hung a framed Reuters photograph of Andrew Mountbatten-Windsor slumped in the back of a car leaving a police station on the day of his arrest
Metropolitan Police Deploys Palantir-Powered AI to Flag Potential Officer Misconduct
UK Parliament Rebukes Police Over Ban on Israeli Football Fans
Britain Emerges Among a Small Group of Nations Without a Religious Majority
UK’s Manufacturing Base at Risk as Soaring Energy Costs Weigh on Industry
Matt Goodwin’s Unconventional Campaign for Reform UK in the Gorton and Denton By-Election
US Military Movements in the UK Spark Speculation Over Preparations Related to Iran Tensions
UK Faces Significant Economic Risk From Trump’s New Global Tariff Regime
×