25 February 2026 
Joni Rhodes, Projects and Development Manager
SECTOR
Student loans have continued to dominate the national headlines since the Chancellor labelled Plan 2 arrangements “fair and reasonable” last month. The Times (£) wages a campaign against the Plan 2 loan conditions, with the backing of five former Education Secretaries, and a claim that “Downing Street has begun drawing up plans to help graduates saddled with spiralling debts”. The Guardian thinks it’s all rather unfair too, labelling it a “generational injustice” that “[squeezes] graduates harder than the super-rich". Those looking for an explainer may find this IFS deep dive an interesting listen.
In the sector press Wonkhe takes a look at the “bleak” numbers of the “doomed” system, the ”fresh hell” for UK graduates living overseas, and the continued need for a wholesale review of higher education funding. In this straight talking HEPI blog, Trinity College Oxford’s Head of Access advocates for a graduate tax, and argues that the loan system places the biggest burden on the least advantaged as “the real subsidy in higher education flows upward toward those who need it least.”
In the political sphere, ex-Education Secretary, David Willetts, has proposed some changes to student loans on Conservative Home, including implementing some Augar recommendations. The Education Minister has provided some DfE modelling of the impact on repayments of freezing the threshold in response to a written question, and has since doubled down on the changes coming into effect in April while confirming ministers would look at the issue again, on the same day that answers to a parliamentary question regarding plans for a review of student loans offered little clarity. A further debate on student repayment plans was underway at the time of writing – watch this space!
A YouGov poll of almost 7,000 adults asked whether they would choose an apprenticeship or university degree if they were 18 again – 51% would choose apprenticeship, 33% would choose university. Though for 18-24 year-olds in the poll those figures were almost reversed – with 52% saying they would choose a university degree and 36% an apprenticeship (and in general, the older the participant group, the less likely they would be to choose a university degree if they had their time again).
Elsewhere, FE Week reports on scrutiny on apprenticeships that “resemble continuing professional development instead of discrete occupations, and are mostly taken by older workers” and the potential funding implications for Level 5 and 6 management apprenticeships. Wonkhe thinks cutting them would be a bad idea, and wonders why there aren’t more accelerated apprenticeship options.
The 2024-25 HESA staff data has been published, capturing details of employment at UK higher education providers on 1 December 2024. The data breakdowns show a slight decline in academic staff headcount, breaking a long‑running growth trend, and highlights small shifts in workforce composition, including declines in UK nationals. Wonkhe’s analysis notes that limitations in non‑academic staff reporting, especially in England and Northern Ireland, mean the data only captures part of the staffing landscape and that a lag between redundancy announcements and job losses will likely show up next year.
UUK has published analysis on the financial impact of government policy decisions on university finances, finding that current policies result in “a worsening of universities’ aggregate financial position in every year to 2028-29". Meanwhile the Office of the Independent Adjudicator confirmed that student complaints are up, and Home Office data shows that study related visa applications are down.
Wonkhe’s analysis of 2024-25 financial data has been updated, with 155 institutions now included, and THE reports on those universities that have not filed yet to file accounts.
UCL has reached a confidential settlement, admitting no liability, in relation to compensation for students impacted by teaching restrictions in the pandemic and during industrial action. There’s coverage on the BBC, which confirms that “a further 36 universities face legal action from more than 170,000 current and former students”, and the Guardian. The BBC and Money Saving Expert have posted explainers. We can’t know what the High Court would have held had the UCL case gone ahead, but Jim Dickinson at Wonkhe lays out some useful elements of the contracts and the relevant legislation here.
UCAS has opened a consultation on the operation of the undergraduate admissions cycle in response to changing student behaviour and extensive student and sector engagement. The recommendations included cover dates, deadlines, and choices, and the deadline for responses is 22 April 2026. Wonkhe unpicks the recommendations, and “why so many of the recommendations are against making changes to existing approaches”.
A new Organisational Efficiency Maturity Assessment (OEMA) tool, commissioned by Universities UK following the 2025 Transformation Taskforce report, is the first higher education specific framework for assessing organisational efficiency and maturity. OEMA has been co-developed with the Association of Heads of University Administration, SUMS consulting, and a reference group of 12 universities, along with input from CUC, BUFDG, HESPA, UHR, Advance HE, and DfE. It provides a framework to assess organisational efficiency against sector benchmarks, a baseline to measure from, and actionable insights and recommendations for improvement. It’s free to use, and you can find more information and guidance on the SUMS website.
A HEPI report titled “We believe this is the way to do it’: Exploring the City St George’s Merger” includes in-depth interviews, real-world guidance, and a potential blueprint for strategic mergers which those involved consider “a route to greater resilience at a time of sustained pressure on the higher education system”.
MI5 and the National Cyber Security Centre delivered high-level security briefings to over 70 Vice-Chancellors, warning that “world-class universities and democratic processes are being targeted by states who want to undermine our way of life.” The extraordinary announcement included the launch of a new Academic Interference Reporting Route, enabling university leaders to report threats directly to government and the security services, alongside new guidance to help Higher Education Providers "recognise, prevent and report foreign interference and protect people, research and academic freedom”.
FUNDING
The OfS released more details on the previously announced Ministry of Defence £80m funding scheme to support approximately 2,400 student places and new teaching facilities on computing and engineering courses over the next three academic years. The announcement included bidding guidance and a template for institutions intending to submit by the 20 March deadline. On Wonkhe, DK wants to know more about the Defence Universities Alliance.
ENGLAND
OfS published guidance and requirements for a further in-year financial return for the 2025-26 financial year to “understand any material movements in some core financial information” in light of ongoing financial sustainability challenges. The OfS portal will open on 5 March, and the deadline for submission is 2 April.
An updated TEF and student outcomes data dashboard has also been published, as well as Higher Education Students Early Statistics (HESES) data.
The BUFDG submission to the DfE consultation on the International Student Levy can be read here, and focuses on the financial impact, use of FTE for student calculations, mitigations for specialist providers, and exemptions for PhD students. Huge thanks to all who contributed, and Andrea for coordinating. See also responses from the Russell Group, UUK, University Alliance, and Million+.
SCOTLAND
The Scottish Universities Finance Conference is a free, one-day, in-person conference and will take place on 28 May at the University of Glasgow this year. It is for all finance staff in Scottish universities and is now open for booking – places are going fast so book your free place here!
The Minister for Higher and Further Education has confirmed that, like Wales, Scotland will not apply the levy on international student fees. Speaking at the Scottish Universities International Group (SUIG) conference, Ben Macpherson said the decision has been taken to “help international students and graduates see Scotland as an even more attractive place to come and study”.
Universities Scotland has announced the 15 people that make up the steering group established to secure a ‘sustainable and successful future for Scotland’s universities’ through the Future Framework. Membership includes representation from universities, the civil service, student and staff trade unions, and industry, as well as authoritative voices from outside the sector, and experts in economic and public policy in Scotland and internationally.
An IFS report on recent changes and the future outlook for Scottish government funding finds it likely that in the future it will be “harder for the Scottish Government to continue to offer a more generous set of universal services (such as free university tuition…) than … elsewhere in the UK” due to the ‘Barnett-squeeze’ (“the tendency of the Barnett formula to deliver smaller percentage changes in funding for Scotland given Scotland’s baseline higher levels of funding”). The BBC and the Telegraph (£) covered the report.
The IFS has a specific page dedicated to the Scottish Parliament election, which takes place on 7 May.
The Scottish Government has published its first spinout report outlining public sector support and the work underway to strengthen Scotland’s research commercialisation ecosystem. "Ideas to Impact Public Sector Support for Research Commercialisation in Scotland Strengths, Ambition and Progress Report” provides a framework of metrics against which progress will be monitored over the next five years, confirms a £3 million R&I Shared Services Collaboration Fund provided by the Scottish Funding Council, and the establishment of a Scottish Innovation Fund in collaboration with The Scottish National Investment Bank and Scottish Universities. A £35 million Life Sciences Accommodation Programme from Scottish Enterprise was also announced as part of Scotland’s Innovation Strategy.
The University of Edinburgh-led Scottish Safe Haven Network (SSHN) has been confirmed as the latest recipient of the Research and Innovation Shared Services Collaboration Fund, awarded £230,000 by the Scottish Funding Council to create a shared services model for accessing data for research in line with the Scottish Government’s strategy for health and social care in collaboration with the University of Dundee and Research Data Scotland.
WALES
Whilst we don’t yet know who is on the Tertiary Education Ministerial Advisory Group (and it’s not yet listed with other education MAGs on the Education and Skills webpage), the Minister for Further and Higher Education issued a written statement on the purpose and remit of the group, and an update from the meeting on 12 February. The group next meets on 5 March.
Medr has published the outcome of its consultation on the Welsh Apprenticeship Programme, outlining plans for a redesigned programme launching on 1 August 2027. The report highlights a shift toward a more flexible, responsive system aligned with Welsh Government skills priorities, focused on improving employer engagement, strengthening Welsh‑language and inclusive opportunities, and ensuring apprenticeships support productivity and a future‑focused workforce.
Medr has also published a breakdown of the recent HESA data release, showing that the number of staff employed at Welsh institutions in 2024-2525 was 2.8% lower than in the previous year (21,995 from 22,635 in 2023-24), reflecting the national downward trend.
The Welsh Government’s Second Supplementary Budget for 2025–26 sets out updated allocations from reserves and adjustments to baselines following UK fiscal events ahead of a Senedd debate on 17 March.
An IFS report finds that Welsh Government funding has risen in real terms since 2020 but is expected to tighten significantly in coming years, with slowing resource growth and falling capital budgets creating tough tax and spending choices.
NORTHERN IRELAND
The Economy Minster has confirmed that the English proposal to freeze repayment thresholds will not apply to graduates in Northern Ireland, however an inflationary increase from £26,095 to £26,900 will apply from April 2026.
TAX AND PAYROLL
Planning for the BUFDG Tax Conference is underway, so a reminder that it will take place online from Tuesday 9 to Thursday 11 June this year and early-bird tickets will be available soon!
Julia has provided a high-level overview of the umbrella company legislation that comes into force on 6 April, and how it will impact universities and higher education providers. We’ve also published a technical paper, and further guidance on when the rules apply, including a flowchart to help you assess your arrangements, and signposting to useful resources. This is essential reading as the implications are “far-reaching” and providers “must implement rigorous supply‑chain checks to identify umbrella companies and ensure their payroll compliance”.
A Wonkhe opinion piece argues that inconsistent tax treatment of pathway and EAP external examiners makes some roles financially unviable and calls for clear HMRC guidance, PAYE‑reflective fees, and consistent sector practice.
The latest TaxHE includes links to all upcoming events including the recently confirmed Time to Talk: Navigating UK University Collaborations in India with KPMG, offering a deep dive into the corporate, income tax, and social security implications for UK universities establishing a campus in India.
PROCUREMENT
The Cabinet Office has published the final piece of official Procurement Act 2023 guidance; this guidance covers Contract Payment Information relating to implementation of section 70 of the Act.
The Cabinet Office has also released two useful guides – one for buyers covering PPON search, and one for suppliers covering below-threshold registration. BUFDG members can find out more about the requirement on the discussion board here.
On 1 April 2026, Crown Commercial Service (CCS) and several Cabinet Office Central Commercial teams (operating under the Government Commercial Function [GCF]) will join to form the Government Commercial Agency (GCA). More information is available on the CCS website.
COUNTER FRAUD
Many thanks to members who have already booked on to tomorrow’s Time to Talk covering Fraud Risk Assessments in the ECCTA era. It is not too late, should you also wish to join the session – please do feel free to book your place here!
FINANCIAL REPORTING
The Financial Reporting Council (FRC) has issued amendments to FRS 102 to provide companies with an updated framework when adapting the formats of their balance sheets and profit and loss accounts in their annual report and accounts, with an effective date of 1 January 2027. This follows consultation on draft amendments in 2025, related to the new standard IFRS 18 Presentation and Disclosure in Financial Statements. For clarity, the changes are relevant for entities that choose to use “adapted” Companies Act formats, however the Financial Reporting Group will assess whether there is any impact on the sector and consider whether any of the changes should be adopted as good practice.
The next BUFDG member SORP Implementation Forum is on 17 March, and will include impact assessment case studies and updates from recent regulator discussions.
RESEARCH AND INNOVATION
UKRI has announced an Artificial Intelligence Research and Innovation Strategic Framework aiming to inform strategic choices around investment, interventions, incentives and funding programmes and “turn AI’s promise into practical impact high‑value jobs, stronger resilience and improved lives”. Round two of the Metascience research grants is open to applications until 23 April, supporting cutting-edge research into more effective ways of conducting and supporting R&D, including the impact of AI.
UKRI CEO Sir Ian Chapman shared another open letter acknowledging anxiety and concerns among the research community and committing to ongoing engagement and consultation in the face of ongoing cost pressures, changes and pauses in research funding. Meanwhile the Royal Astronomical Society has written to Science Minister, Sir Patrick Vallance, urging him to reverse cuts to Science and Technology Facilities Council (STFC) funding as they will cause “catastrophic damage to astronomy and space science.” In Parliament, Sir Vallance acknowledged the concerns and confirmed that curiosity-driven research is his “[n]umber one priority” for UKRI.
A new commission (a collaboration between Wonkhe, UCL, Policy.Partners, and Counterculture) will investigate how the UK can better leverage university‑driven research and innovation to boost national economic growth, and “assess and develop the mechanisms needed to drive economic growth across the country through research, development, and innovation”.
The 2025 Postgraduate Research Experience Survey (PRES) results show the highest levels of PGR satisfaction in more than a decade. Wonkhe takes a deeper dive and highlights that “home students continue to be less likely to report satisfaction than their international peers.”
The first monthly Innovate UK drop-in surgery took place on 17 February, with nearly 50 attendees and lots of queries answered or taken away for further investigation. These sessions are hosted by IUK exclusively for BUFDG members in response to a high level of queries, and dates for the next few months can be found here along with a recording of the recent call, which IUK has kindly offered to record for those not able to attend.
SUSTAINABILITY
A report commissioned by the Concordat for the Environmental Sustainability of Research and Innovation Practice finds that “the sector shows strategic ambition on environmental sustainability, but there is significant opportunity for organisations to share specific ambitions and progress on sustainable [research and innovation] practice”. ‘Environmental sustainability and research and innovation practice’ provides the first comprehensive benchmark of environmental sustainability across the UK Research and Innovation sector, and is designed to establish a benchmark for assessing the concordat’s impact over time.
New research published by KCL’s Policy Institute finds that public support for net zero is shifting, with "a big decline in the public’s sense of urgency about achieving net zero – even if most still feel this should be a target for the UK.” For inspiration in Higher Education, join the Salix Decarbonisation Dialogue: informal knowledge-sharing event on 26 March and hear how the London School of Hygiene & Tropical Medicine is navigating the net zero journey and utilising funding from funding from the former Public Sector Decarbonisation Scheme.
PENSIONS
A reminder that we are holding a roundtable meeting on 2 March specifically for CFOs/FDs to discuss the possible options for the USS pension scheme after the 2026 valuation, and how institutions might respond to the UCEA consultation on this.
INVESTMENT
Cazenove Capital has launched a new Charity Investment Policy Framework to support well governed, mission aligned investment decisions. Two webinars covering Investment Policy Best Practice are also scheduled on 3 March and 12 March.
MISCELLANEOUS
If you're looking for some light relief about the sector's current woes, and aren't feeling too sensitive about it, you might enjoy Research Professional's highlights of this year’s Winter Olympics for universities and research.
JOB OF THE FORTNIGHT
This week’s highlighted role is Head of Finance and Planning (Directorates) at Oxford Brookes University. The post-holder will play a key leadership role in supporting the financial sustainability and strategic direction of the University’s Professional Service Directorates. Closing date 22 March.
As always, there’s a range of roles to be found on the BUFDG jobs page.
