Committee publication · Correspondence · 9 December 2025
Letter to Minister for Skills on Higher Education and Funding dated 09.12.25
From: Education Committee
Inquiry: Higher Education and Funding: Threat of Insolvency and International Students
Summary
The Education Committee asks the Minister for Skills to clarify the legal basis for the government's position that insolvent higher education providers can continue trading and teaching during compulsory liquidation. The Committee notes this interpretation conflicts sharply with evidence from legal experts, unions, and sector bodies, who argue such institutions would face immediate liquidation with no teach-out possible.
Key findings
- Government claims insolvent HE providers can continue trading and teaching during compulsory liquidation to support student teach-outs and protect achievements
- Multiple external sources (Mills & Reeve LLP, UNITE, Cathedrals Group, Office of the Independent Adjudicator) report significant legal uncertainty about insolvency outcomes for Royal Charter and Higher Education Corporation institutions
- Legal evidence suggests Royal Charter institutions would be treated as unregistered companies, triggering immediate liquidation with no further teaching possible
- Committee states government's position 'appears to be markedly and significantly at variance' with received evidence on insolvency procedures
Tone
CriticalTopics
Key actors
Baroness Smith of Malvern, Helen Hayes MP, Neil Smyth, Mills & Reeve LLP, UNITE, Office for Students, Cathedrals Group of Universities, Office of the Independent Adjudicator for Higher Education
Notable line
“The Department's position therefore appears to be markedly and significantly at variance with the evidence we have heard.”
Key Quotes
“… we believe that insolvency liquidation permits continued trading during that period of compulsory liquidation. It would mean, therefore, that we would be able .... to support students, to support research and the important capacity of that provider during the period of liquidation”
“… such providers would likely be treated as an unregistered company and therefore undergo immediate liquidation. Thus, no further teaching would be possible.”
“The Department's position therefore appears to be markedly and significantly at variance with the evidence we have heard.”
Source · parliament.uk record ↗