Four-fifths of the University of Northampton’s income from tuition fees last year

Four-fifths of the University of Northampton’s income came from tuition fees last year, meaning it could be hard hit by a predicted drop in student numbers due to coronavirus.

The University and College Union has criticised a package of government support for the sector, after it warned of a £2.5 billion funding “black hole” caused by a collapse in student intake due to Covid-19.

Higher Education Statistics Agency data shows 79% of the University of Northampton’s revenue was from tuition fees in 2018-19 – equal to £99.6 million.

This was much higher than the average of 49% across all institutions.

A University of Northampton spokesperson said: “The University of Northampton is managing the impact of Covid-19 on our students, staff, teaching and research, while making significant contributions to our community and the effort to tackle the pandemic. We have also continued engaging with applicants, hosting online sessions for them to talk with staff and current students, with three to be held later this month.

“We are examining the details of Monday’s government announcement regarding support for the sector, and will add our voice to the national conversation with government to ensure that detailed measures are developed to meet both the scale and diversity of pressures that universities are facing," the spokesperson added.

A report for UCU, conducted by London Economics, warns an estimated 62,000 jobs are at risk at universities and throughout the wider economy, with a potential cost to the country of more than £6 billion.

The Government has pledged to bring forward £2.6 billion in tuition fees that universities would have received later in the year, and £100m of research funding.

But providers will face a cap on the number of full-time undergraduate UK and EU students they can recruit for 2020-21 – set at an extra 5% on top of the number they had already forecast they would admit – to prevent a race to the bottom among institutions looking to boost funding by swelling their ranks.

UCU general secretary Jo Grady said the sector needs “more than IOUs to solve the problems they face”.

She added: “The student number cap is a misnomer as it will enable the wealthiest universities to substantially grow their domestic student base at the expense of other more locally-focused institutions.

“We cannot afford to let this dog-eat-dog approach risk substantial damage both to our country’s academic capacity and local economies which universities are such an important part of.

“Instead of kicking the can down the road, the Government must underwrite funding lost from a fall in domestic and international student numbers and remove incentives for universities to compete against each other at a time when we need to be pulling together.”

The report predicts around 60% of the £2.5 billion loss for the 2020-21 academic year will come from a drop in numbers of international students, who can pay up to three times the £9,250 annual fees charged to those from the UK.

However, only 18% of the University of Northampton’s tuition fee income came from non-EU students in 2018-19, according to the HESA figures – well below the average of 29% across all institutions.

Universities UK president Julia Buckingham said the Government’s measures indicated a “welcome recognition” of the central role universities will play in the recovery of the economy and communities.

Education Secretary Gavin Williamson said: “We are committed to supporting our world-class universities and students through this unprecedented challenging time.

"So we are putting measures in place to help protect students and staff from the impact of coronavirus."