This article is part of a two-part series exploring how UK higher education providers can better prepare for, manage, and respond to the risk of institutional closure.
In Part One, we introduce a new study and practical framework developed by SUMS Consulting and the Office of the Independent Adjudicator for Higher Education (OIA), and explain why urgent action is needed.
Part Two shares key findings and lessons from providers, partners, and students involved in real-world closures.
Jump to Part Two: Key findings and sector insights
As financial pressures mount across the UK higher education (HE) sector, a new report by SUMS Consulting and the Office of the Independent Adjudicator for Higher Education (OIA) calls for reforms to better protect students when institutions face closure.
Why now? Understanding the urgency of provider closure planning
In summer 2024, a conversation between SUMS and the OIA raised a critical question: how can higher education providers (HEPs) better prepare for potential closure – and ensure students are protected throughout the process? This study was launched to consider ways of helping institutions plan proactively, manage risk, and prioritise student interests.
The financial sustainability of the UK HE sector is under increasing scrutiny and there are risks of insolvency and institutional closures. These risks pose serious consequences for students, staff, and local communities.
Unlike commercial businesses, HEPs face unique challenges when exiting the market, such as the need to support students long-term, limited alternative providers in some regions, complex funding structures, and public pension obligations. Notably, the HE sector lacks a dedicated insolvency framework, making closures legally and operationally uncertain – especially for institutions like Royal Charter bodies and Higher Education Corporations. Recent cases show that students are often treated as unsecured creditors during closures, with limited protections. By contrast the further education sector has a special administration regime that enables a structured and orderly closure and sufficient time to protect students’ interests.
Although no major university has yet become insolvent, financial pressures are mounting. The Office for Students’ (OfS) 2025 financial sustainability report highlights growing deficits, liquidity issues, and declining international student numbers, particularly affecting smaller teaching-intensive and specialist institutions.
A collaborative cross-sector effort
Together with the OIA, SUMS launched a cross-sector study to identify lessons and effective practices, to develop a practical structured framework to support providers in mitigating the risk of market exit or planning for managed closures, and to identify any reforms which could strengthen student protection in the event of closures.
To do this, we spoke with over 40 experts from sector bodies and membership organisations, legal and restructuring advisors, student representatives, and those closely involved with market exit (from closing, receiving, and validating institutions). We also brought together an expert group to help shape and refine our findings and the outputs from the study.
Although the study focused on HE providers in England, the insights and tools are applicable across the UK. While we concentrated on full provider closures, many lessons also apply to course, campus, and subject-level closures.
Tools to prepare, respond and protect
The result are resources which we hope will help providers feel more prepared to face financial challenges, and most importantly to protect students if closures do happen.
- The report explores what happens during closure, brings together lessons collated from the study and includes case study examples. SUMS also makes recommendations for government, regulators, and providers to consider on potential changes needed to better support providers and protect students.
- The accompanying framework is a practical, Excel-based checklist of key actions providers may consider taking to help mitigate the risk of market exit and, if this is undesirable or unavoidable, to help manage closure.
We hope the report and framework will equip providers to navigate sustainability challenges more effectively and, ultimately, help reduce the impact of closures on students.
Continue reading Part Two: Key findings from the study – lessons for the sector
For more information about the study please contact consulting@sums.ac.uk.
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About SUMS
SUMS is a membership, not-for-profit organisation and registered charity, owned by our member universities. We work side-by-side with our members, clients and partners, to help them be better, more effective organisations. Our expert team can support providers with many of the areas discussed in the report, including the following:
- Reviewing and advising on approaches to governance effectiveness, efficiency
- Executive and governing body facilitation, bespoke training and ad hoc advice
- Risk management
- Scenario and contingency planning
- Development of institutional dashboards, including identification of warning signs (trigger points/stress testing)
- Portfolio mapping, to identify and understand complexities
- Portfolio and course Costing
- Student support and wellbeing in times of institutional uncertainty
- Strategic communications planning
- Ongoing mentoring and critical friend support and advice within our member and client institutions to help implement and successfully embed change.
Get in touch for more information about how we can support you at consulting@sums.ac.uk
