Roula Khalaf, the Editor of the Financial Times, curates a selection of noteworthy stories in a weekly newsletter titled the Editor’s Digest.
In England, the proportion of postgraduate research positions filled by domestic students is on the decline, amid warnings from university leaders about “catastrophic” funding cuts affecting the sector. According to data from the Office for Students, UK students represented only 43% of the 24,865 enrollments for full-time postgraduate research degrees this academic year. This figure is a decrease from 47% in 2023-24 and 51% in 2017-18, marking a downward trend identified in the regulator’s survey of grant-funded higher education institutions.
University administrators attribute the decline in domestic student enrollments to reductions in research funding, which they believe threatens the UK’s capability to develop the skilled workforce necessary for the government’s industrial strategy. Stephanie Smith, Deputy Director of Policy at the Russell Group of leading universities, emphasized the need for graduates with high-level qualifications to support innovation-driven growth.
Typically, domestic research degrees are funded by grants or contributions from research councils, government bodies, and charitable organizations, whereas international students bear a greater portion of their educational expenses. Simon Green, Pro Vice-Chancellor for Research at Salford University and a former official at Aston University, indicated that tuition fees do not adequately cover the costs of these programs and that universities have historically managed to offer PhDs at a reduced cost due to external funding. However, financial constraints affecting partners like charities have led to a reduction in funding for research roles.
Current estimates illustrate that only 44% of the expenses for delivering research courses are met through tuition fees and external sponsorship. Green noted that the higher education sector is increasingly reliant on the expansion of international student numbers in lucrative programs, such as business master’s degrees. However, this revenue stream is under pressure due to visa restrictions enacted by the previous Conservative government.
Although the intake of international students for these profitable master’s programs has significantly dropped following these policy changes, enrollments for research programs by international students continue to rise. Nonetheless, this increase has not compensated for the decrease in other tuition income, as research courses comprise just 3% of the total international student intake.
The Office for Students has cautioned that unrealistic expectations regarding the growth of international enrollments have exacerbated a financial crisis within the higher education sector, raising the risk that a significant educational provider might face bankruptcy.
Deborah Prentice, Vice-Chancellor of Cambridge University, referred to a “catastrophic fall” in state funding allocated by certain research councils. She mentioned that Cambridge has taken steps to mitigate the impact, although the institution has experienced a 20% reduction in its postgraduate research intake since 2017-18.
The UK government has allocated £8.8 billion for this year to UK Research and Innovation (UKRI), which supports a fifth of research students. Although this funding level matches the previous year, universities express concerns that rising costs to support students will limit the number of placements available. Data obtained via a Freedom of Information request by the Financial Times indicates that the number of new postdoctoral students sponsored by UKRI has decreased by more than 20% over the past eight years.
UKRI has stated it does not plan to cut the number of placements projected for 2025 and will increase the minimum student stipend by 8% starting in October, reaffirming that postgraduates remain a foundational element of its portfolio.
Additional reporting was contributed by Michael Peel.
