Why are Unis underfunded?<\/strong><\/h4>\n\n\n\nIn September 2024 Newcastle Vice Chancellor Chris Day revealed a \u00a335 million shortfall in the University budget<\/span><\/a>, which they reportedly aim to correct with \u201cdifficult choices and prioritisation\u201d.<\/p>\n\n\n\nSimilar stories are unfolding in universities like Cardiff<\/span> <\/a>and Durham<\/a><\/span>, where staff cuts and rising accommodation fees are being stretched to cover financial deficits and loans. There are three main reasons why universities across England are having to increase profits and cut costs:<\/p>\n\n\n\n1: Tuition fee cap<\/strong><\/p>\n\n\n\nDubbed by news sites a \u2018cost of living crisis\u2019<\/span><\/a>, England is currently facing an inflated 3.7% Retail Price Index<\/span><\/a>, meaning that the prices of food and energy are steadily rising. As a result, the costs of other goods and minimum wage are also being boosted, making employing large numbers of staff and affording resources costly for once prosperous universities.<\/p>\n\n\n\nAdditionally, since the 2017 rise of tuition fees to \u00a39,250 per year, the cap on tuition prices has meant that universities\u2019 income was kept artificially low in the face of inflating costs. New legislature has now increased tuition fees by \u00a3285<\/span><\/a> for the 2025 academic year. However, if fees had risen in line with inflation, The Week<\/em> reports that they should have reached highs of \u00a315,000 today<\/a><\/span>.<\/p>\n\n\n\n2: Loss of international student<\/strong>s<\/p>\n\n\n\nEmeritus Professor Sir Peter Scott – who was previously the Pro-Vice Chancellor of the University of Leeds, and a board member of the Higher Education Funding Council for England \u2013 told us that ” international students have, in effect, been treated as a \u2018cash cow\u2019 by universities for years\u201d.<\/p>\n\n\n\n
Unlike capped domestic tuition, universities have always charged international students much higher prices. For example, for a Journalism, Media and Culture BA at Newcastle, an international student would pay \u00a323,800 annually<\/span><\/a>, around 2.5x more than a domestic pupil.<\/p>\n\n\n\nNew barriers to entry like Brexit changes to visa requirements<\/span><\/a>, the loss of the Erasmus+ international student funding programme<\/span><\/a>, and the \u201ctoxic debate around immigration\u201d \u2013 said Scott – have deterred international students from studying in England, slashing their \u00a341.9 million contribution to English higher education<\/a>.<\/span> To learn more about the barriers putting international students off studying in England, watch our TikTok here<\/a>.<\/span><\/p>\n\n\n\n3: Inaccurate projections?<\/strong><\/p>\n\n\n\nWhilst the gradual loss of governmental funding is the face of budgeting issues, Scott said that behind the scenes universities may have overestimated international student numbers<\/a> <\/span>– \u201cmany had made unrealistic assumptions that the number of international students would just go on increasing\u201d.<\/p>\n\n\n\nSigns sporting slogans like “CHRIS DAY ATE MY CAREER” on the Newcastle University and College Union (UCU) picket lines point to overboiling anger at higher management; figures like the Vice Chancellor are being blamed for not predicting “the impact of a shortfall in international student recruitment this year”<\/span><\/a>, which Day said were the cause of the staff cuts. On 27th April, the UCU announced 21 extra strike days and a prospective marking boycott to further protest against these Executive Board decisions.<\/p>\n\n\n\n![\"\"](\"https:\/\/journalists.org.uk\/keira-gratton\/wp-content\/uploads\/sites\/24116\/2025\/04\/IMG_5372-Small.png\")
“CHRIS DAY ATE MY CAREER” picket on Newcastle UCU picket line
Image credit: Keira Gratton<\/figcaption><\/figure>\n\n\n\nHow does this affect everyone?<\/strong><\/h2>\n\n\n\nTo account for \u00a320 million of financial deficit<\/a>,<\/span> Newcastle University has been raising its internal student costs<\/span><\/a>, as well as announcing around 300 staff cuts to lower wage expenses<\/span><\/a>.<\/p>\n\n\n\n
Similar stories are unfolding in universities like Cardiff<\/span> <\/a>and Durham<\/a><\/span>, where staff cuts and rising accommodation fees are being stretched to cover financial deficits and loans. There are three main reasons why universities across England are having to increase profits and cut costs:<\/p>\n\n\n\n 1: Tuition fee cap<\/strong><\/p>\n\n\n\n Dubbed by news sites a \u2018cost of living crisis\u2019<\/span><\/a>, England is currently facing an inflated 3.7% Retail Price Index<\/span><\/a>, meaning that the prices of food and energy are steadily rising. As a result, the costs of other goods and minimum wage are also being boosted, making employing large numbers of staff and affording resources costly for once prosperous universities.<\/p>\n\n\n\n Additionally, since the 2017 rise of tuition fees to \u00a39,250 per year, the cap on tuition prices has meant that universities\u2019 income was kept artificially low in the face of inflating costs. New legislature has now increased tuition fees by \u00a3285<\/span><\/a> for the 2025 academic year. However, if fees had risen in line with inflation, The Week<\/em> reports that they should have reached highs of \u00a315,000 today<\/a><\/span>.<\/p>\n\n\n\n 2: Loss of international student<\/strong>s<\/p>\n\n\n\n Emeritus Professor Sir Peter Scott – who was previously the Pro-Vice Chancellor of the University of Leeds, and a board member of the Higher Education Funding Council for England \u2013 told us that ” international students have, in effect, been treated as a \u2018cash cow\u2019 by universities for years\u201d.<\/p>\n\n\n\n Unlike capped domestic tuition, universities have always charged international students much higher prices. For example, for a Journalism, Media and Culture BA at Newcastle, an international student would pay \u00a323,800 annually<\/span><\/a>, around 2.5x more than a domestic pupil.<\/p>\n\n\n\n New barriers to entry like Brexit changes to visa requirements<\/span><\/a>, the loss of the Erasmus+ international student funding programme<\/span><\/a>, and the \u201ctoxic debate around immigration\u201d \u2013 said Scott – have deterred international students from studying in England, slashing their \u00a341.9 million contribution to English higher education<\/a>.<\/span> To learn more about the barriers putting international students off studying in England, watch our TikTok here<\/a>.<\/span><\/p>\n\n\n\n 3: Inaccurate projections?<\/strong><\/p>\n\n\n\n Whilst the gradual loss of governmental funding is the face of budgeting issues, Scott said that behind the scenes universities may have overestimated international student numbers<\/a> <\/span>– \u201cmany had made unrealistic assumptions that the number of international students would just go on increasing\u201d.<\/p>\n\n\n\n Signs sporting slogans like “CHRIS DAY ATE MY CAREER” on the Newcastle University and College Union (UCU) picket lines point to overboiling anger at higher management; figures like the Vice Chancellor are being blamed for not predicting “the impact of a shortfall in international student recruitment this year”<\/span><\/a>, which Day said were the cause of the staff cuts. On 27th April, the UCU announced 21 extra strike days and a prospective marking boycott to further protest against these Executive Board decisions.<\/p>\n\n\n\n To account for \u00a320 million of financial deficit<\/a>,<\/span> Newcastle University has been raising its internal student costs<\/span><\/a>, as well as announcing around 300 staff cuts to lower wage expenses<\/span><\/a>.<\/p>\n\n\n\n
Image credit: Keira Gratton<\/figcaption><\/figure>\n\n\n\nHow does this affect everyone?<\/strong><\/h2>\n\n\n\n
![\"\"](\"https:\/\/journalists.org.uk\/keira-gratton\/wp-content\/uploads\/sites\/24116\/2025\/05\/Screenshot-2025-05-08-at-02.50.45-Large-1024x638.jpeg\")