The financial outlook for England’s higher education sector has deteriorated since the start of the year, requiring universities to take “bold and transformative” action to avoid falling into bankruptcy, according to the sector regulator.
Almost three-quarters of such institutions are forecast to be in deficit in the academic year starting September 2025, following a £3.4bn decline in net income across the sector, according to a report published on Friday by the Office for Students.
The regulator blamed the squeeze on weaker than expected student recruitment, with admissions at some universities in line with the “more pessimistic” scenarios laid out in its last report into the sector’s finances published in May.
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