Almost Three-quarters of universities could make a loss in the next year

University of Northampton projects a £19 million deficit without taking action

Author: Lauren WattPublished 15th Nov 2024

New research suggest a drop in student numbers is affecting finances at a number of Universities across the country.

The University of Northampton (UoN) also announced earlier this month that they could be looking to reduce or make cuts to its curriculum, amid ongoing redundancy talks in the face of financial pressures.

This follows an earlier voluntary redundancy scheme announced in June, which was in response to a projected £19.3 million deficit that the University would face without taking action.

The regulator also projected a deficit of 3-point-4 billion pounds across the sector in the 2025-26 academic year.

It comes just weeks after the Education Secretary announced uni fees in England would rise.

A University of Northampton spokesperson said:

“Universities are acutely aware that any Government proposals to increase fees will be an important factor in the decision-making process for someone considering a degree. Students should be assured that this week’s announcement is not going to increase the amount they pay each month after they graduate and are earning above £25,000, and the University’s financial guidance team is standing by to offer expert support.

“A University education is an investment, as people who learn more, earn more, with graduate salaries rapidly overtaking non-graduates and producing positive outcomes for students from less advantaged backgrounds.

“After seven years of no increases in England, the income from domestic tuition fees has not kept pace with inflation. This has drastically eroded the real value of tuition fees and maintenance loans by around a third, which is completely unsustainable for Universities and students. We welcome the Secretary of State’s pledge of wide-spread reform in higher education and the Government’s recognition of our vital contribution to the economy, society, industry and innovation.”

Hear all the latest news from across the UK on the hour, every hour, on Greatest Hits Radio on DAB, smartspeaker, at greatesthitsradio.co.uk, and on the Rayo app.