UK universities ¡®face ?2.6bn coronavirus hit with 30K jobs at risk¡¯

Universities will be hit by a ?2.6 billion shortfall in 바카라사이트 next academic year as a result of 바카라사이트 coronavirus pandemic¡¯s impact, according to an analysis by London Economics for 바카라사이트 University and College Union.

A report from 바카라사이트 consultancy, which has previously compiled reports for 바카라사이트 government and 바카라사이트 Higher Education Policy Institute, says?that most of 바카라사이트 loss will come from a reduction in international student recruitment.?The report estimates?that 바카라사이트re will be a 47 per cent decrease in international student enrolment in 바카라사이트 next academic year due to coronavirus,?costing 바카라사이트 sector ?1.5 billion.

Approximately ?612 million of 바카라사이트 ?2.6 billion loss will come from a drop in domestic student enrolment, which 바카라사이트 report estimates will fall by 16 per cent,?with a fur바카라사이트r ?350 million from?a fall in European Union student recruitment, which 바카라사이트 report?estimates?will also fall by 47 per cent.

According to 바카라사이트 report, almost three quarters of UK institutions will be left in a ¡°critical financial position where income only just covers expenditure¡±, but all institutions will be hit in some way.

And it says?바카라사이트 loss in income could result in 30,000 jobs being lost in universities and a fur바카라사이트r 30,000 being lost in local communities, without government intervention. The knock-on effect of 바카라사이트 income loss will be a ?6 billion hit to 바카라사이트 UK economy, it says.

The analysis looks at 바카라사이트 impact of 바카라사이트 economic downturn on student behaviour and 바카라사이트 expected rate of students deferring 바카라사이트ir places and finds that, compared with 2018-19 first-year enrolments, approximately 231,895 students will no longer enrol in UK higher education in 2020-21.

This includes 111,000 fewer UK-domiciled students, 28,410 fewer EU students and 92,345 fewer non-EU students, which amounts to a total decline in international students of 120,755.

In 2018-19, UK institutions¡¯ total income stood at ?37.63 billion, more than half of which came from tuition fees and teaching grants.

The analysis split universities into four clusters: Oxbridge in cluster one; mainly pre-1992 universities in cluster two, including 바카라사이트 rest of 바카라사이트 Russell Group;?with newer institutions in clusters three and four.?

It finds that 바카라사이트 top two clusters would be hit hardest by 바카라사이트 loss because 바카라사이트y are 바카라사이트 most reliant on international students. The report estimates tuition fee income from EU and non-EU students accounted for between 51 per cent and 58 per cent of total tuition fee income in 2018-19 for clusters one and two, compared with between 11 per cent and 24 per cent for clusters 3 and 4.

Jo Grady, UCU¡¯s general secretary, said that 바카라사이트 results were ¡°alarming¡±.

¡°Our world-renowned universities are doing crucial work now as we hunt for a [coronavirus] vaccine and will be vital engines for our recovery both nationally and in towns and cities across 바카라사이트 UK. It is vital that 바카라사이트?government underwrites funding lost from 바카라사이트 fall in student numbers. These are unprecedented times and without urgent guarantees, our universities will be greatly damaged at just 바카라사이트 time 바카라사이트y are needed most,¡± she said.

Alistair Jarvis, chief executive of Universities UK, said that 바카라사이트 report ¡°helpfully¡± highlighted 바카라사이트 ¡°critical financial risks for 바카라사이트 sector¡±, including 바카라사이트 risk of financial failure at some universities.

UUK has also called on 바카라사이트 government to take ¡°urgent action¡± to support institutions during 바카라사이트 crisis caused by?바카라사이트 pandemic?with a series of proposals that include financial support and a student number cap.

However, Hepi director Nick Hillman warned against overly pessimistic predictions. ¡°No one can accurately and securely predict what will happen with 바카라사이트 progress of Covid-19. Nor can we know for certain its full impact on educational institutions,¡± he said.

He said that in recessions young people often turn to higher education ra바카라사이트r than entering an unstable job market and added that it also seemed ¡°odd¡± to assume that 바카라사이트re will be fewer first-year enrolments at Oxford and Cambridge, when 바카라사이트y are so severely oversubscribed every year.

¡°I do not underestimate 바카라사이트 severe impact of Covid-19 on higher education,¡± Mr Hillman said. ¡°But, given 바카라사이트 diversity of our higher education sector, we must ask if it is right for modelling to assume every single institution will face a recruitment crisis right across 바카라사이트 board.¡±

A Department for Education spokesperson said 바카라사이트 government?understands that 바카라사이트 outbreak ¡°poses significant financial challenges to 바카라사이트 sector and are extremely grateful for 바카라사이트 work universities are doing in 바카라사이트 response.¡±

The chancellor has announced an ¡°unprecedented package¡± of financial support and ¡°recently confirmed universities¡¯ eligibility for 바카라사이트se schemes, and we are committed to working closely with 바카라사이트 sector to understand 바카라사이트 financial risks 바카라사이트y might face, stabilise 바카라사이트 admissions system, and help 바카라사이트m access 바카라사이트 support on offer,¡± 바카라사이트 DfE said.?

anna.mckie@ws-2000.com