Higher education liquidity remains a key issue in 2026 as further squeeze to visa applications expected
The government has published its monthly visa data which shows that Sponsored study visa applications were up by 5% for the year ending December 2025, compared to December 2024. However, applications remain 10% lower than the year ending December 2023.
Lisa Randall, partner and National Head of Higher Education at RSM UK, comments: “Another steady uptick in visa application in December, but we expect more movement next month as January 2026 enrolments land which will hopefully deliver a small boost to UK universities.
“However, changes to the visa restrictions on dependents continues to drag on levels of international students coming to the UK to study, which will remain a huge financial headache of many universities as the fiscal shortfall could widen further with an incoming levy on international students.
“This will place a £925 cost per overseas students for the university to cover which will be put back into the higher education provision and skills. However, at a time when budgets are already constrained with small increases in domestic fees, lower number of UCAS applications, higher staff costs and the projection for 18-year-old demographic to start to fall back in 2030.”
She added: “Policy changes, student behaviour, increased costs and future demographic changes make it increasingly difficult for universities to model future student numbers, forecast income streams and budget effectively. With more than a third of the sector in a projected deficit position, liquidity will be a key challenge throughout 2026.”