Category: UK Government

  • New UK government video targets international students

    New UK government video targets international students

    Secretary of state for education, Bridget Phillipson, addressed students considering studying abroad, highlighting the benefits of a UK education and promoting the country’s post-study work opportunities.

    “In the new academic year, we will welcome thousands of international students who will be starting courses in our universities and I hope to see many more in the future,” Phillipson said in the video shared by the UK Council for International Student Affairs (UKCISA).

    “The UK is a wonderful and safe place to study. Our country is home to some of the very best universities in the world – four of the world’s top 10 can be found right here in the UK.

    “An education from a British university has been the springboard for success for so many global trailblazers, from politics to business, from the arts to the sciences, in fact dozens of current and recent world leaders studied here in the UK and our universities have driven some of the most exciting and valuable research anywhere in the world.

    “You could be part of the next groundbreaking wave of research and join a new generation of inspiring leaders,” she told prospective students.

    Phillipson went on to describe some of the ways in which UK universities support their international students through pastoral support, work experience, scholarships and bursaries.

    “You’ll also get have the chance to join Alumni UK – a global group of people from around the world who have studied here. It’s a fantastic professional network that you can tap into to get great advice and guidance.”

    Phillipson went on to promote the UK’s Graduate Route, describing the opportunity which lets graduates “work, live and contribute” in the UK.

    International students forge international friendships so by studying abroad, you can help build bridges between our countries, and these connections help make the world a better, brighter place.

    Bridget Phillipson, UK secretary of state for education

    “Studying in the UK sets you up for success in your career, but it’s more than that. International students forge international friendships so by studying abroad, you can help build bridges between our countries, and these connections help make the world a better, brighter place.”

    Phillipson previously addressed international students in a video not long after stepping into the role in July 2024.

    On the release of the latest video, Anne Marie Graham, UKCISA chief executive, said she was “encouraged” to see the continuing messages of welcome and support from the UK’s education secretary.

    “Current and prospective students will also welcome the secretary of state’s ongoing support for the graduate visa and her reflections on the mutual benefits of a UK education – not just the contributions that international students make to the UK, but the positive impact on their own careers and ambitions,” she told The PIE.

    “We look forward to continuing to work with the UK government to ensure international students are welcomed and supported, from pre-arrival visas to post-graduation work opportunities, so that all international students have a positive experience studying here.”

    Pedram Bani Asadi, chair of the UKCISA’s Student Advisory Group commented: “I welcome the support from this government for international students’ hopes and dreams, and recognition of all the contributions we make to both UK culture and the economy.

    “Having access to the Graduate Route has been absolutely essential for me to be able to reinforce the skills I learnt in my studies and contribute to the UK. I appreciate all the friends and experiences I’ve had here and look forward to continuing my role as a #WeAreInternational student ambassador, and working with the UK government to support my fellow international students to have a positive experience.”

    Since Labour took came into power, sector stakeholders have noted the government’s more welcoming tone toward international students, a marked contrast to the rhetoric of the previous Conservative government.

    Despite a change in rhetoric, the Labour government has shown no intention of reversing the Conservative’s decision to ban international students on UK taught master’s courses from bringing dependants with them to the UK.

    “While the new government has said many positive things about international students, the focus on immigration remains acute,” said Jamie Arrowsmith, director of Universities UK International in an update to sector earlier this month.

    The UK’s international educations strategy is currently under review, and the rollout of the new approach is set for April.

    Sector leaders gathered at the QS Reimagine Education summit in London late last year to discuss priorities for the UK’s international education sector going forward, giving suggestions for a refreshed strategy, which included improved post-study work rights.

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  • Higher education in England needs a special administration regime

    Higher education in England needs a special administration regime

    Extra government funding for the higher education sector in England means the debate about the prospect of an HE provider facing insolvency and a special administration regime has gone away, right?

    Unfortunately not. There is no additional government funding; in fact the additional financial support facilitated by the new Labour government so far is an increase to tuition fees for the next academic year for those students that universities can apply this to. It is estimated that the tuition cost per student is in excess of £14K per year, so the funding gap has not been closed. Add in increased National Insurance contributions and many HE providers will find themselves back where they are right now.

    It is a problem that there is no viable insolvency process for universities. But a special administration regime is not solely about “universities going bust.” In fact, such a regime, based on the existing FE special administration legislation, is much more about providing legal clarity for providers, stakeholders and students, than it is about an insolvency process for universities.

    Managing insolvency and market exit

    The vast majority of HE providers are not companies. This means that there is a lack of clarity as to whether current Companies and Insolvency legislation applies to those providers. For providers, that means that they cannot avail themselves of many insolvency processes that companies can, namely administration, company voluntary arrangements and voluntary liquidation. It is debatable whether they can propose a restructuring plan or be wound up by the court, but a fixed charge holder can appoint receivers over assets.

    Of these processes, the one most likely to assist a provider is administration, as it allows insolvency practitioners to trade an entity to maximise recoveries from creditors, usually through a business and asset sale.

    At best therefore, an HE provider might be able to be wound up by the court or have receivers appointed over its buildings. Neither of these two processes allows continued trading. Unlike administration, neither of these processes provides moratorium protection against creditor enforcement either. They are not therefore conducive to a distressed merger, teach out or transfer of students on an orderly basis.

    Whilst it is unlikely that special administration would enable survival of an institution, due to adverse PR in the market, it would provide a structure for a more orderly market exit, that does not currently exist for most providers.

    Protections for lenders

    In addition to there being no viable insolvency process for the majority of HE providers, there is also no viable enforcement route for secured lenders. That is a bad thing because if secured lenders have no route to recovering their money, then they are not going to be incentivised to lend more into the sector.

    If government funding is insufficient to plug funding gaps, providers will need alternative sources of finance. The most logical starting point is to ask their existing lenders. Yes, giving lenders more enforcement rights could lead to more enforcements, but those high street lenders in the sector are broadly supportive of the sector, and giving lenders the right to do something is empowering and does not necessarily mean that they will action this right.

    Lenders are not courting the negative press that would be generated by enforcing against a provider and most probably forcing a disorderly market exit. They are however looking for a clearer line to recovery, which, in turn, will hopefully result in a clearer line to funding for providers.

    Protections for students

    Students are obviously what HE providers are all about, but, if you are short of sleep and scour the Companies and Insolvency legislation, you will find no mention of them. If an HE provider gets into financial distress, then our advice is that the trustees should act in the best interest of all creditors. Students may well be creditors in respect of claims relating to potential termination of courses and/or having to move to another provider, potentially missing a year and waiting longer to enter the job market.

    However, the duty is to all creditors, not just some, and under the insolvency legislation, students have no better protection than any other creditor. Special administration would change that. The regime in the FE sector specifically provides for a predominant duty to act in the best interest of students and would enable the trustees to put students at the forefront of their minds in a time of financial distress.

    A special administration regime would therefore help trustees focus on the interest of students in a financially distressed situation, aligning them with the purposes of the OfS and charitable objects, where relevant.

    Protections for trustees

    Lastly, and probably most forcefully, a special administration regime would assist trustees of an HE provider in navigating a path for their institution in financial distress. As touched on above, it is not clear, for the vast majority of HE providers, whether the Companies and Insolvency legislation applies.

    It is possible that a university could be wound up by the court as an unregistered company. If it were, then the Companies and Insolvency legislation would apply. In those circumstances, the trustees could be personally liable if they fail to act in the best interest of creditors and/or do not have a reasonable belief that the HE provider could avoid an insolvency process.

    Joining a meeting of trustees to tell them that they could be personally liable, but it is not legally clear, is a very unsatisfactory experience; trust me, this is not a message they want to hear from their advisors.

    A special administration regime, applying the Companies and Insolvency legislation to all HE providers, regardless of their constitution or whether they are incorporated, would allow trustees to have a much clearer idea of the risks that they are taking and the approach that they should follow to protect stakeholders.

    In the event a special administration was to be brought in, we would hope it would not need to be applied to a market exit situation. Its real value, however, is in bringing greater legal clarity for lenders and trustees and more protection for students, in the current financial circumstances that HE providers find themselves in.

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