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<p>This response assumes that the report referenced is PwC’s UK Higher Education (HE)
Financial Sustainability Report, which was commissioned by Universities UK. Departmental
officials have met with Universities UK to discuss the findings of this report.</p><p>The
PwC report cites similar risks to those identified by the Office for Students (OfS),
which is the independent regulator of HE in England responsible for monitoring the
financial sustainability of registered HE providers. The latest report by the OfS
on the financial health of the sector, which was published in May 2023, can be accessed
at: <a href="https://www.officeforstudents.org.uk/media/0b7d9daa-d6c7-477e-a0b2-b90985d0f935/financial-sustainability-report-2023-updated-june-2023.pdf"
target="_blank">https://www.officeforstudents.org.uk/media/0b7d9daa-d6c7-477e-a0b2-b90985d0f935/financial-sustainability-report-2023-updated-june-2023.pdf</a></p><p>The
department continues to work closely with the OfS, HE representative bodies and other
government departments, as appropriate, to understand the financial sustainability
of the sector.</p><p>In the aforementioned OfS report on the financial health of the
HE sector, the OfS stated that the overall aggregate financial position of the sector
is sound. However, there continues to be significant variation between individual
providers, both across the sector and within peer groups.</p><p>The department consistently
assesses the potential implications for any policies that could impact the HE sector,
including financially, and particularly with respect to the interests of students.</p><p>It
is important to note that HE providers are autonomous and, as such, it is for them
to decide effective business models in order to adapt to financial risks. All HE providers
should be stress testing their financial plans to ensure they are fit for purpose
and that they do not rely on optimism around student recruitment.</p>
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