Coronavirus: 13 UK universities 'could go bust without bailout'
In addition, universities which are running pension scheme deficits will see them widen during the pandemic as investments stagnate.Universities with many international students which also have substantial pension obligations are often also higher-ranking institutions, with"large financial buffers" and the option of alleviating losses by admitting more UK-based students.
Without significant redundancies, which would impact on teaching quality, universities are unlikely to be able to claw back much of the losses through cost savings, the researchers warn."Our analysis shows it is not the universities with the greatest losses, but the institutions in the weakest financial positions before the crisis, that are at the greatest risk of insolvency," they conclude.
The analysis, which was funded by the Nuffield Foundation, suggests a targeted bailout aimed at"keeping these institutions afloat could cost just £140m"."However, rescuing failing institutions may weaken incentives for others to manage their finances prudently in future," she warned. "When funding is so unstable, it's no wonder that our universities and the jobs of thousands of academic and support staff are now at risk," said a spokesperson.The University and College Union's general secretary, Jo Grady, called on the government"to step in and guarantee lost funding for universities so they can weather this crisis and lead our recovery on the other side".
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Coronavirus UK: are Covid-19 cases rising or falling near you?Latest updates: how has Covid-19 progressed where you live?
Read more »
Coronavirus UK map: the latest deaths and confirmed Covid-19 casesLatest figures from public health authorities on the spread of Covid-19 in England, Scotland, Wales and Northern Ireland. Find out how many confirmed cases have been reported in each local authority
Read more »
Sunak considers £500 vouchers for all UK adults to spend in Covid-hit firmsChancellor urged to introduce a scheme that has jump-started other countries’ blighted hospitality and retail sectors
Read more »
Coronavirus UK map: the latest deaths and confirmed Covid-19 casesLatest figures from public health authorities on the spread of Covid-19 in England, Scotland, Wales and Northern Ireland. Find out how many confirmed cases have been reported in each local authority
Read more »
Covid-19 could lead to 27,000 more excess UK deaths by next April, expert warnsSir David King, a former Government chief scientific adviser, says it appears the current Government policy was to 'maintain' the current level of about 3,000 new coronavirus infections per day across England
Read more »