Legal News

Office for Students intensifies financial monitoring of UK higher education institutions

Published on: 17 January 2025
Published by LNB News

LNB News 17/01/2025

Document Information

Issue Date: 17 January 2025

Published Date: 17 January 2025

Jurisdiction(s): England, Northern Ireland, Scotland and Wales

Article summary

The Office for Students (OfS) has announced a shift in its regulatory approach to address growing financial pressures in the higher education sector. Until August 2025, the OfS will dedicate increased resources to monitoring and supporting the financial sustainability of universities and colleges. This includes more frequent engagement with institutions, collecting timelier financial information and potentially conducting in-depth reviews of financial management at some providers, utilising external financial consultants where necessary. The OfS is encouraging institutions to proactively stress-test their finances and develop robust contingency plans. This enhanced scrutiny comes in response to projections that, without intervention, 72% of higher education providers could be in deficit by 2025-2026. The OfS emphasises that this intensified monitoring aims to protect students' interests and ensure the sector's long-term financial stability.

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