Jobs Jeopardised and Courses Cut Across UK Universities
British universities are facing serious financial difficulties, leading to mass job cuts and course closures.
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Why are British higher education institutions failing financially?
On Wednesday, 29 January, Durham University announced plans to axe 200 jobs, affecting both professional and academic staff.
This comes as part of a cost-cutting campaign that aims to save the institution £10 million this academic year and a further £10 million in 2025/26.
The reason quoted for these cuts by Durham is that the university had reported “an underlying operational deficit” for the first time.
Vice-Chancellor Prof Karen O’Brien stated that “We cannot fulfil our aims of remaining a world-class centre of research and education without a firmly established and sustainable financial base.”
Cardiff University announced on 28 January that it has no other choice than to cut 400 jobs.
This totals nearly 10% of its entire staff base.
The operating deficit of Cardiff is reported to be over £31 million. It says that at the current rate it will run out of money in four years, with Vice-chancellor Prof Wendy Larner stating that “it is no longer an option for us to continue as we are.”
They also announced that several courses would be phased out, including nursing, modern languages, music and religion and theology. Plaid Cymru’s spokesperson for education, Cefin Campbell, described these cuts as “devastating”.
“Talks of ceasing some programmes within certain departments including nursing, when Wales is short of 2,000 nurses, is unthinkable.”
Official plans for the implementation of Cardiff University’s cuts will be published after a 90-day consultation.
Both universities have both refused to rule out compulsory redundancies, which the University and College Union (UCU) has described as “cruel”. They have already initiated formal dispute procedures with Durham.
Cardiff and Durham join UEA, the University of Kent, and Newcastle University, all of which have also announced cuts over the last week, blaming financial shortfalls.
Newcastle and Kent are planning to introduce voluntary severance schemes, although it is unclear what will happen if reduction targets are not met.
These cuts are currently projected to total more than 1000 jobs. According to the Trades Union Congress (TUC), “nearly three-quarters of higher education providers in England could be in deficit by 2025-26.” This shows that more universities are likely to announce cost-cutting measures in the coming months.
A University of Leeds spokesperson said: “The University of Leeds delivered a strong underlying operating surplus for the financial year 2023-24.
Like many Higher Education providers, we are developing a strategic response to the challenging financial environment facing the sector, including international student recruitment.”
According to the Annual Financial Report of the university, its underlying operating surplus had increased to £60 million at the close of the 2023/24 academic year. What this strategic response could entail is unclear.
Many universities are blaming lower income from domestic tuition fees as a major reason for the operational shortfall.
As outlined in the Financial Times, high inflation since 2020 is “driving up operating costs, including energy bills and salaries, while eroding the real-terms value of domestic tuition fees.”
Annual tuition fees for UK students have been frozen since 2017 at £9250, but Labour Chancellor Rachel Reeves announced in November 2024 that they would be raised to £9535 per year for 2025/26. This will affect both new and existing undergraduates. This is an increase of £285, equivalent to 3.1%, which is in line with RPIX.
RPIX is the percentage change of all goods and services in the British economy excluding interest on mortgage rates.
The Institute for Fiscal Studies warned that if the government continued to raise tuition fees in line with RPIX, then “the cap could reach £10,680 in 2029/30 [based] on current forecasts. If the government is planning to continue to raise the fee cap with inflation, it should say so.”
Universities across the UK are also quoting declining numbers of international students coming to the UK to study. Between September 2023 and September 2024 sponsored study visas fell by 19%, according to government data.
International students often pay double or triple that of their domestic counterparts, averaging £22,000 per annum. Studies show that overseas students’ tuition fees make up around 20% of the average income of UK universities.
The former Conservative government’s ban on dependents came into effect in January 2024, and is thought to be a major reason for the decline in international students. The ban prevents anyone except research-based postgraduates from bringing parents and/or children to the UK.
The University of Leeds experienced an almost 10% decrease in international students (including EU students) between 2021/22 and 2022/23, from 15,783 to 14,294, according to official figures in the Registered Students report. It currently states that there are “more than 14,400 international students from over 137 countries.”
Contrary to what many universities are suggesting, however, early figures from 2025 indicate that the number of overseas students in British universities is climbing again. Times Higher Education says acceptance rates are rising by 14% compared to last year. Data from UniQuest suggests acceptance rates are up 31%.
Universities across the UK will be carefully monitoring changes in government policy around higher education and in fluctuating interest from international candidates over the coming months.
Words by Joseph Quash
