Students at risk if universities go bust, say MPs

Students at risk if universities go bust, say MPsJust nowShareSaveAdd as preferred on GoogleJulia BrysonandBranwen Jeffreys,Education editorGetty ImagesStudents need better government protection if a university in England goes bust and cannot pay its debts, according to MPs.In a report, the Education Select Committee said 24 institutions are now said to be at risk of insolvency within the next 12 months - with many already making job cuts, closing courses and selling off buildings or land. Helen Hayes MP, who chairs the committee, said the priority was to protect students "who have invested time, money and energy" into their studies.A Department for Education (DfE) spokesperson said the government was committed to creating a secure future for universities so they can deliver for students, taxpayers and the economy.Hayes said: "Developing an early warning system is essential. The government and the Office for Students should be ready to step in when the lights are turning amber, not when they are already flashing red."The Labour MP for Dulwich and West Norwood said the possibility of a major UK university becoming insolvent was a "real possibility, not a theoretical warning".The report said a protocol should be developed with costed plans for protecting students and staff, by offering options such as merging with another institution, restructuring or an orderly exit, where the university effectively closes but with arrangements in place for students, staff and courses.'Ambitious reforms'The report said the higher education regulator, the Office for Students, fears 24 providers - including seven with over 3,000 students - are at risk of insolvency and "market exit" in the next 12 months.A further 26 institutions are at risk of exit within the next two to three years, it said, but some of these are smaller, as only about half of them have more than 3,000 students.The DfE said it had "taken action to put the sector...