Universities UK has raised alarms about the financial stability of institutions, suggesting an increase in tuition fees to £12,500 annually to cover teaching costs. With rising inflation and a decline in international student numbers, many universities are facing staffing cuts and reduced course offerings. The Office for Students reports that 40% of universities anticipate deficits this academic year. Education Secretary Bridget Phillipson acknowledged the severe financial challenges, emphasizing the adverse impact of frozen tuition fees on university income.