UK universities are crumbling: Could your uni be at serious risk of closing?

And what actually happens when your uni runs out of money

4 months ago

Emily Smith | News

“I think what we’ve got to accept is that some universities may well go bust,” former Home Secretary Suella Braverman recently said. “They may well close. And I don’t think that’s necessarily a bad thing,” she added.

But with tuition fees frozen at the same rate for over a decade and a huge decrease in international students and their high fees amid visa restrictions, the majority of universities in the UK are in a “catastrophic” financial crisis, and some could be at risk of closure. But what actually happens when a uni goes bust? And could it happen to your uni?

Well, we don’t know for certain given that a UK university has never gone bust before. But, Dr Simon Boxley, a senior lecturer at the University of Winchester said: “Everybody is waiting with bated breath to see who will go under first, which institution it will be that will fall off the cliff edge.”

An investigation in the Sunday Times this weekend found that three UK universities are understood to be in “serious peril”, with a high risk of closure whilst others are suffering major funding crises. The Government is even considering merging universities together.

One of the main problems is that every single UK uni is making a loss on every single British student it takes in. This loss is £2,500 per student and is expected to rise to £5,000 by the end of the decade. With stricter visa restrictions in place, a smaller number of international students, who typically pay double in tuition fees, are applying to study in the UK. This means that nearly every single university is running at a loss.

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This week, new education secretary Bridget Phillipson is expected to speak out on the problem. A government insider revealed the university crisis is “at the top of a list of challenges inherited from the last government”. But last week she met with UCU’s General Secretary Jo Grady who warned that “anything short of an emergency rescue package for the sector will be insufficient to stave off catastrophe.”

The UCU has used an independent auditor to go through the accounts of UK universities and whilst three unis were found at risk of imminent closure, 66 unis were named to be in serious financial trouble. A former uni Vice-Chancellor revealed that this means students due to start uni in September could find courses unavailable.

Basically nearly all UK unis are in serious debt, with some more than others. But amidst all this, the education secretary revealed she hasn’t ruled out an increase in tuition fees.

So these are the universities facing cuts amidst the huge financial crisis:

Via Canva (before edits)

Goldsmiths, University of London

Goldsmiths, University of London is one of the universities highly affected. One in seven jobs has been threatened as a result, with Goldsmiths proposing redundancies of half of the history and sociology department and a third of all English and creative writing academics. As a result, lecturers at the university have been taking part in a marking and assessment boycott today, something severely affecting graduations, and plan to continue the action into September.

Goldsmiths told iNews: “Universities across the UK are having to make difficult decisions to navigate unprecedented financial challenges. This is a painful time for us all as we take steps to make our finances sustainable.”

Cardiff University

unis closing

Cardiff University is another university in a huge deficit and plans to scrap its ancient languages degree entirely, with a petition against the decision reaching 1,529 signatures. The university says it recognises its decision “to discontinue a number of low-recruiting optional modules”, “may be disappointing” but says it will have no impact on staffing levels, according to The i.

Kingston University

Having already axed over 70 courses including history and politics, Kingston University has also put its highly ranked philosophy department “under review”. A spokesperson from the uni said: “During the review, a range of data will be analysed to identify the current position and trends in Philosophy as a subject area. Once the review has been completed, findings and recommendations will be considered further by the University. All teaching and research is continuing to take place as usual.”

University of York

unis closing

According to The Times, at York, a university with a yearly income of £519 a year, a voluntary severance scheme has been set up for staff and there are reportedly 413 redundancies being planned for staff.

Oxford Brookes

At Oxford Brookes, there have already been 20 jobs cut but now the university has drawn up a “financial sustainability plan” where it plans to merge four departments into two in order to cut costs.

Middlesex University

Middlesex University is another university looking at course closures to cut costs. The uni has closed a postgrad course in its theatre department which will stop accepting new students in September. A uni spokesperson said: “Like many universities, Middlesex has to make difficult and responsible decisions to safeguard its future… In order to remain financially sustainable, adapt to an evolving educational environment, and support students, some courses may close. Where changes lead to course closures and potential job losses, we will consult with our staff and registered trade unions and ensure that support and guidance is available.”

But what actually happens if your uni shuts down?

So, the truth is we don’t really know. With some unis in talks for mergers, it could mean that a nearby uni swallows up the bankrupt uni’s campus and assets but it’s severely hard to tell. The closest a UK university has come to closure was in 1987 when the then University College Cardiff was plunged into financial crisis by the Thatcher government’s dramatic cuts to university funding. But despite the initial plan that Thatcher wanted to “make an example” of UCC and let it sink, the crisis actually prompted a major intervention from the Department of Education and Science, which injected about £20 million. But we assume the Government can’t do this for every single university in the UK.

Bob Rabone, a former finance director at the University of Sheffield told Times Higher Education that the Office for Students would most likely intervene, “because of the impact on students” and basically stop the “university’s activities”. It could essentially stop the university from accessing its student’s loans.

And yes, the question you most wanna know is would you get that loan, and all your money back? Well, technically all unis should have a “student protection plan” setting out what would happen if a uni does close. But people have pointed out that these plans “just do not work” and so students would actually be in the queue behind loan companies in getting money back. Peak! Other options include students transferring to neighbouring universities to pick up the slack.

Basically, the only options universities have to save themselves from financial ruin is for course and job cuts (something which will naturally be heavily protested against), the government to either bail them out by pumping lots of money into them, scrapping the cap on tuition fees and increasing them or allowing more international student fees.

UK universities are in serious crisis and severe action needs to be taken to stop them crumbling.