Letting the worst universities collapse would be an act of kindness

Nobody said much about it before the election, but the new government inherits a ghastly financial problem with the higher education system. Rising costs, stagnant tuition fees, and a big drop in foreign student enrolments have left several universities tottering like ivory Jenga towers.

This week we got an inkling of what education secretary Bridget Phillipson and higher education minister Jacqui Smith are thinking of doing about this mess. Not surprisingly, big money bail-outs are out (chancellor Rachel Reeves won’t allow them), as are increases in student fees (which backbenchers wouldn’t stand for). Instead, apart from telling the institutions in trouble to tighten their belts, the government seems rather short on solutions. One idea being mooted apparently envisages hinting that foreign students are more welcome than they were under the Tories, changing the rules to allow more courses to be given online, and leaning on some top institutions which are in less trouble to take over those on the brink.