A new survey by Universities UK shares the steps UK universities are taking to respond to funding pressures.
With many universities having to make ‘significant cuts’ due to financial pressures, Universities UK surveyed universities to find out where they were cutting costs and what transformative actions they are taking to improve efficiencies and long-term sustainability.
“Many universities had to make significant cuts, but the survey also shows how the sector is finding creative, collaborative solutions to become more efficient and ensure it can continue to deliver the world-class education the UK is known for.” – Vivienne Stern MBE, Chief Executive of Universities UK
Where are universities cutting costs?
Cost-cutting occurs most commonly in staffing, with 79% of universities putting in hiring freezes/pauses in recruitment and 79% considering voluntary redundancies. Students are also being impacted, with 27% of universities cutting student bursaries and scholarships (a 12% increase on 2025) and 13% cutting hardship funding. Students also have fewer courses to choose from, with 46% of universities consolidating courses and 44% closing courses (over the last three years.) Another area where universities are cutting costs is in academic research activity, with 31% reporting they have done just this in the last three years (an increase on 2024 of 17%).
Concerningly, 13% of universities have closed campuses over the last three years and 29% said they would consider doing so in future. Additionally, 54% of universities have cut back on repairs and maintenance.
What creative solutions are universities considering?
A few popular options include:
- digital transformation (81%)
- shared procurement options (71%)
- collaborative structures such as federations and alliances (65%)
- multi-academy trust style models or mergers (40%).
There are, however, barriers to universities in ‘how much progress they can make alone’ and so the sector is calling for a government-backed Transformation Fund.
Learn more from Universities UK.
References
- Universities UK (2026) ‘Two in five universities consider joining forces through ‘multi academy trust’ style models or mergers, new survey shows’. Available at: https://www.universitiesuk.ac.uk/what-we-do/creating-voice-our-members/media-releases/two-five-universities-consider-joining (Accessed: 8 June 2026)
