Hot on the heels of one of the world’s largest HE mergers at Adelaide University, and while the West Australian Government considers whether to merge Curtin, UWA and/or Murdoch, news comes from the UK that 40% of UK institutions are open to or actively considering mergers as a result of financial challenges.
A survey of 140 institutions by sector lobby group Universities UK, conducted in March-April 2026, found that 65% were considering collaborative structures, such as federations or alliances, and two out of every five were considering mergers or acquisitions.
The survey found there were, “significant barriers limiting the progress universities can make on their own,” including lack of control over funding and limitations on internal knowledge and skills required for the future.
Tight limitations on international student enrolments and an eight year freeze on domestic fees before a small rise was allowed in 2025 have left many UK universities struggling. Half of the UK's universities are expected to be in the red and at risk of financial insolvency this year, according to the Office of future Students.
Underlining the dire state of balance sheets of many UK institutions, the survey found that 79% were pursuing voluntary redundancies and had paused or frozen recruitments. Almost a third (31%) of institutions had cut research to save funds and 27% had cut student fees and bursaries.
Campuses are also a key target for cost saving, with 54% cutting back on repairs and maintenance, 13% closing campuses and 29% considering closing campuses in future.
Shared procurement was also identified as another potential area for cost reductions, with 71% saying they were open to it.