“A hard rain is going to fall on universities"
UK universities have warned that fresh restrictions on international student visas could worsen an already dire financial crisis across the sector.
A government white paper on immigration is expected soon. It will reportedly target students from countries deemed at risk of overstaying or claiming asylum.
Vivienne Stern, head of Universities UK (UUK), said institutions faced “a critical moment” and warned any new rules would hurt recruitment and reduce income.
She said: “The immigration white paper is likely to restrict universities’ ability to recruit international students, and make a difficult financial situation facing the sector considerably worse.”
Earlier restrictions, including a ban on most dependents joining students, have already triggered a drop in enrolments from abroad.
The latest proposals suggest students from Nigeria, Pakistan and Sri Lanka could face extra scrutiny.
The government is said to be working with the National Crime Agency to profile applicants it believes may later claim asylum.
In 2024, nearly 10,000 asylum seekers had originally entered the UK legally on student or work visas. Many ended up living in hotels and other publicly funded accommodation.
Sector under pressure
Stern said universities are being used to deflect attention from immigration policy, pointing to government briefings about vice-chancellors’ salaries.
She said: “It is a bit frustrating that the government has chosen to throw out this story as a distraction, when there are some really serious challenges to deal with.”
A report suggested universities would be “named and shamed” if top executives received large pay rises while delivering poor outcomes for students.
A Whitehall source said: “A hard rain is going to fall on universities that continue to be so blasé about executive pay increases while letting down students… The days of the unaccountable ivory tower are over.”
Stern defended sector leaders, arguing their pay is in line with the demands of their roles.
She said:
“We need government on the pitch and helping to stabilise universities, not engaging in distraction techniques.”
Stern also highlighted the sharp fall in income due to flat domestic tuition fees and fewer international students, who pay much higher rates.
Redundancies, closures and cuts
A new survey by UUK of 60 institutions reveals the scale of the financial damage already underway.
A quarter of universities have made compulsory redundancies. Nearly half (49%) have closed courses, and one in five (18%) have shut entire departments. Around 19% have reduced research funding.
Six in ten (60%) have cut maintenance work.
Half have slashed catering budgets, and nearly as many (46%) have reduced IT spending.
The Department for Education said it remained focused on long-term reform and value for money.
A spokesperson said: “The secretary of state has been clear that, as part of wider reform of the system, there must be a renewed drive for efficiency in the sector, including much less wasteful spending.
“This government inherited a sector facing serious financial risk and remains committed to fixing the foundations of higher education to secure the sector’s long-term financial sustainability and deliver change for students.”
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