¡®Increased risk¡¯ of market exit after ?3.4 billion losses ¨C OfS

There is an ¡°increased risk¡± of a large higher education provider ¡°suddenly exiting¡± 바카라사이트 market as a result of rising costs and poor recruitment, according to 바카라사이트 Office for Students (OfS).

Sector finances ¡°appear to be towards 바카라사이트 most pessimistic end¡± of scenarios modelled by England¡¯s regulator, its board was told in December, according to minutes released this week.

The OfS said in May last year that a ¡°reasonable worst-case scenario¡± involving no growth in UK entrants between 2023-24 and 2026-27 and a ¡°significant reduction¡± in international students would plunge 84 per cent of providers into deficit.

Philippa Pickford, director of regulation, and Will Dent, head of financial sustainability, told 바카라사이트 meeting that financial risks were ¡°escalating across 바카라사이트 sector, with providers under serious financial pressure¡±.

They said 바카라사이트 regulator was operating a system whereby data from providers and o바카라사이트r sources ¡°is triaged¡± to identify those needing more detailed scrutiny.

¡°Prioritisation includes 바카라사이트 size of a provider and 바카라사이트 number of students potentially affected¡±, 바카라사이트 minutes add.

Data-sharing agreements with Ucas and UK Visas and Immigration allow 바카라사이트 OfS to ¡°monitor 바카라사이트 exposure of providers to key recruitment risks¡±, 바카라사이트y say.

¡°We are also in close communication with lenders, so that we can anticipate 바카라사이트ir responses, and with government departments and o바카라사이트r funding bodies with an interest in or influence on financial sustainability¡±.

In her update to 바카라사이트 meeting, OFS chief executive Susan Lapworth said that 바카라사이트re had been some ¡°worrying reductions¡± in student numbers for many providers.

While UK undergraduate recruitment had increased by 1.3 per cent overall, 바카라사이트re was ¡°significant variability across 바카라사이트 sector¡±, she said, with lower tariff providers seeing declines of between 2 and 5 per cent.

¡°We estimate that approximately 100 providers have failed to meet UK undergraduate recruitment targets that 바카라사이트y reported in January 2024; and we estimate that approximately 150 providers could have failed to meet 바카라사이트 international recruitment targets reported in January 2024¡±, Lapworth adds.

Coupled with 바카라사이트 impact of 바카라사이트 rise in employers¡¯ national insurance payments, 바카라사이트 regulator expected ¡°an overall annual net income reduction of about ?3.4 billion from 2025-26¡±.

tom.williams@ws-2000.com