University Hall

Why are universities in financial trouble?

Published on 21 August 2024

Why are universities struggling, what happens if they go bust and what can government do to help? What other challenges do the HE and FE sectors face?

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Over recent months, we’ve heard lots of stories about the pressures on university finances, and concern that some universities may go bust. 

We’ll discuss why this is, what happens if a university goes bust and whether government can do anything to fix the problem. We’ll also discuss longer-term challenges facing the higher and further education sectors.

We're joined by Jack Britton and Christine Farquharson, IFS education experts.

Zooming In: discussion questions

Every week, we share a set of questions designed for A Level economics students to discuss, written by teacher Will Haines.

1. Why are universities facing financial challenges?

2. Are there any potential risks to the government if they were to offer financial support to universities?

3. Evaluate the potential economic benefits of a more educated society.