The Financial Struggles of UK Universities: A Bleak Outlook for Students

It is no secret that in recent years, UK universities have faced growing financial challenges, a situation exacerbated by the aftermath of the COVID-19 pandemic. One institution at the forefront of this discussion has been the University of Kent, which has made a series of significant financial decisions in a bid to maintain itself during this period of economic uncertainty.

In February of 2024, the University of Kent announced plans to cut 58 jobs in response to its “financial challenges”. Since then, the situation has only escalated, with plans to cut nine courses from its portfolio and the closure of the University of Kent Brussels School of International Studies (BSIS) in the Spring of 2024. These measures reflect a broader trend across the sector, as universities grapple with deficits and rising costs.

The response from Kent’s students has been understandably mixed, with many expressing concern about the long-term impact on their education. One student, speaking to The Brussels Times, described the closure of BSIS as “an absolute shock”, adding that the manner of the announcement had only heightened their anxiety during an already stressful period.

Despite these turbulent developments, Kent University has been relatively transparent about its financial situation. It revealed a £30 million deficit for the 2023-2024 academic year, which prompted the measures. However, while the university’s candour is notable, it is the students themselves who are bearing the brunt of these financial challenges.

In a bid to understand the situation from their perspective, I spoke to a third-year student at the university who wished to remain anonymous. This conversation provided a sobering account of life at Kent during the current climate, particularly in the aftermath of the 2022 UCU strikes, which took place during the students first year of university. 

The student recalled that during the strike action, “my department was clear and transparent about why they were striking”, adding that their lecturer even presented a PowerPoint to explain the reasons. Yet, the student noted a stark contrast in communication since then: “That PowerPoint was the last I heard. I do think, as students, they don’t want us to know because we’re paying so much money.”

This sentiment is not isolated, instead it reflects a broader sense of frustration at the lack of clarity regarding how tuition fees are spent. Many students feel in the dark about the financial workings of their institutions, with a recent BBC survey finding that 80% of students across the UK feel universities do not provide enough transparency about how their tuition fees are used. As the student put it: “There’s probably a good 20,000 students paying £9,000 each, but I don’t know where all that money goes”. 

Even with the widespread UCU strikes largely quelled for now, more concerns continue to pop up for students– such as the cost of living crisis, which adds to the financial strain students are already experiencing. Accommodation fees at Kent, for example, are seen as disproportionately high. “The cheapest accommodation is £160 a week, and it’s not even nice,” the student remarked, questioning how such high costs are justified, particularly during a period of economic instability.

However, discussion surrounding this financial strain is nearly redundant without the discussion of solutions too. When asked plainly: who will come to their aid? The student gave a candid response, reflecting on the stark differences in higher education between today and the 1990s, when their parents attended university. “We’re paying thousands of pounds a year to attend somewhere which is basically a sinkhole. Where’s all the money going?” they asked. 

The student went on to vocalise their personal theories, one which involved the role of universities as both educational institutions and businesses. As the student noted, “Universities are panicking… they are a business, and everything revolves around money, but there isn’t any.” A sobering reminder of how institutionalised the higher education crisis is. 

Kent is just one of 66 UK universities grappling with significant financial instability, with no doubt this number will rise significantly in coming years, only broadening the spectrum of financial turmoil in the UK. A recent study found that the rising cost of living, combined with declining support from the government, has created an environment in which students are left to shoulder an increasingly heavy financial burden– demonstrating the implications of these institutions’ economic failure on the individual student. 

Against this backdrop, the announcement on November 4th 2024 that the government will increase tuition fees for students came as a crushing blow for students struggling with the already astrinomical costs, as this news only further entrenches the financial hardship they face. 

As we move further into a decade marred by economic instability, the question remains: how much more can students bear? In an environment where higher education is becoming increasingly inaccessible, it seems that the very system designed to offer opportunity is itself at risk of collapse.

Words by Poppy Grainger

Cover Image Credit: Business Durham via Flickr

Sources: BBC News, Times Higher Education, Brussels Times