LABOUR was urged to provide long-term public funding for higher education yesterday after the sector’s regulator warned that nearly three-quarters of providers could soon be in the red.

The Office for Students (OfS) said up to 72 per cent of higher education providers could fall into deficit by 2025-26.

In its report, it put a decrease in student numbers as a significant factor and estimated that British and international entrants were 10 and 23 per cent lower than sector forecasts this academic year. 

There was an 11.8 per cent decline in sponsor acceptances, with the largest decreases affecting Nigerian students, which fell by 44 per cent and Indian students which dropped by 20 per cent. 

It found that recruitment decreased particularly across medium, smaller and specialist institutions, and that it decreased by nearly a quarter in institutions offering Level 4 and 5 qualifications such as diplomas and foundation degrees. 

It estimated that the sector will suffer a £3.4 billion reduction of net annual income. 

Last week, Labour announced that tuition fees would rise yet again in England to £9,535 from next year, which OfS estimates could bring in an additional £371 million.

But the UCU warned that the government has already hit the sector with the employer national insurance hike.

According to OfS this would result in a £430m increase each year from 2025-26

UCU general secretary Jo Grady said: “The tuition fee increase announced last week will not stop the rot; Labour now urgently needs to set out how it will put the sector on a sustainable footing by providing long-term public funding.”