The University of Greater Manchester: Epicenter of Allegations

The University of Greater Manchester (UGM), formerly known as the University of Bolton which sought a name change, has become a focal point for serious allegations of fraud, bullying, racism, and profound mismanagement. Whistleblowers first raised concerns through the Manchester Mill news site in February 2025, prompting investigations by Greater Manchester Police (GMP) into suspected fraud and bribery by May 2025. Police searches targeted properties in Greater Manchester and southern England, uncovering financial irregularities tied to external contractors.

The university's governing body commissioned a PricewaterhouseCoopers (PwC) inquiry, suspending Vice-Chancellor Professor George Holmes—after two decades in the role—and two senior staff as a precaution. Despite these developments, the Office for Students (OfS), the higher education regulator, delayed announcing its formal investigation until December 2025, over six months after police action began. This lag drew sharp criticism from MP Phil Brickell, who labeled the OfS 'asleep at the wheel' in letters to the regulator and Education Secretary Bridget Phillipson, highlighting risks to 11,000 students, staff, alumni, and the local economy.

By early 2026, the scandal escalated with the chair of governors resigning amid ongoing OfS governance probes, underscoring governance failures and lack of transparency. This case exemplifies deeper systemic issues in UK higher education, where poor oversight amplifies financial and ethical lapses.

Sector-Wide Financial Turmoil: Deficits and Liquidity Crunches

UGM's troubles reflect a broader crisis gripping UK universities. The OfS's November 2025 financial sustainability update revealed that 45% of providers (124 institutions) forecast deficits for 2025-26, up from 34% earlier projections, with nearly one in six facing liquidity below 30 days without action. Causes include stagnant domestic tuition fees, declining international enrollments due to visa restrictions, and rising operational costs post-inflation and energy spikes.

Seven universities remained overdue on accounts by February 2026, signaling ongoing instability. Half of providers still operate at a loss, prompting radical measures like mergers or restructurings. For context, the Office for Students (OfS)—established in 2018 to ensure financial viability—now monitors risks closely, urging prudent planning and collaboration.OfS financial update

Management Consultants: Fueling the Fire?

A contentious factor is universities' heavy reliance on external management consultants amid cost pressures. Critics, including a prominent Financial Times exposé, argue firms like the 'Big Four' (PwC, Deloitte, EY, KPMG) charge exorbitant fees for advice leading to aggressive staff cuts and course closures, exacerbating crises rather than resolving them. De Montfort University, for instance, spent over £5 million on consultants in five years, with nearly £1 million to Big Four firms across eight contracts.

Such spending—often opaque—draws fire for prioritizing short-term fixes over sustainable strategies. Universities UK (UUK) notes government policies have slashed funding by £3.7 billion cumulatively, pushing institutions to consultants for 'transformation' plans that prioritize redundancies. Experts like Gregor Gall from the University of Glasgow decry this as knee-jerk reactivity, questioning if reserves rebuilt through cuts address root funding flaws.

Mass Redundancies and Staff Unrest

The human cost is stark: UK universities shed 13,300 jobs in 2024-25 via severance, totaling nearly 30,000 over three years, with payouts soaring 71% to £303.3 million. Queen's University Belfast led with £25.4 million for 300 staff, followed by the Open University (£17.5 million for 664). Russell Group unis accounted for 41% of payouts.

Projections warn of 10,000 annual cuts into 2026, fueling strikes. The University and College Union (UCU) balloted at Sheffield Hallam (130 jobs at risk), London Met (120), and Scottish unis, protesting vice-chancellors' £300k+ salaries amid 15,000+ losses since 2024. This precarity erodes teaching quality and research output.

Student Fallout: Complaints Surge to Record Levels

Financial strains ripple to students: The Office of the Independent Adjudicator (OIA) logged 4,234 complaints in 2025—a 17% rise from 2024 and 179% since 2016—driven by resource cuts, staff shortages, and procedural lapses. One in five upheld, costing unis dearly while highlighting support failures for vulnerable groups like internationals and disabled students.

Impacts include disrupted courses, delayed graduations, and eroded trust, as seen in UGM's uncertainty affecting 11,000 learners.

Regulatory Lapses: OfS in the Spotlight

The OfS faces backlash for reactive oversight. In UGM, its six-month delay undermined confidence; MP Brickell demanded accountability. Broader critiques note insufficient proactive intervention amid deficits, prompting calls for a universities commissioner to orchestrate mergers, cuts, and governance upgrades—mirroring further education's model.THE on commissioner proposal

Diverse Voices: Stakeholders Weigh In

• Unions (UCU): Blame mismanagement and austerity; demand pay rises, fair redundancies.
• Vice-Chancellors: Cite funding model broken by fee caps, visa curbs; seek inflation-linked hikes.
• Experts (Phil McNaull, ex-Edinburgh CFO): Revenue must match costs long-term; cuts alone insufficient.
• Students: Frustrated by service declines; OIA notes rising expectations for fairness.

MPs and think tanks like HEPI urge systemic review to avert 'creeping death' of institutions.

Growing Demands for Government Inquiry

Amid scandals, voices amplify for a national inquiry. Brickell's OfS critique signals parliamentary scrutiny; UUK models £3.7bn policy hit, while experts propose commissioner-led reforms. Twitter buzz echoes 'sheer scale of mismanagement & corruption,' trending as dry rot analogy. A probe could expose consultant excesses, regulatory gaps, and chart recovery.

Beyond UGM: Other Distress Signals

Brunel University posted £56m deficit from fee falls; Sheffield Hallam eyes £27m savings via 130 jobs; Essex plans 200 academic redundancies. Late accounts at seven unis underscore opacity.

Charting a Sustainable Path Forward

Solutions demand nuance: realistic recruitment tempered by diversification (e.g., apprenticeships, overseas hubs); governance bolstering via commissioner; consultant curbs for in-house expertise; policy shifts like fee uplifts, levy reallocations. Collaborative mergers could consolidate strengths, protecting students.

Photo by Marty Sakin on Unsplash

Horizon for UK Higher Education

Without intervention, 2026 risks more closures, strikes, quality erosion—threatening global standing. Yet, proactive reform could forge resilience, balancing fiscal prudence with mission integrity. Stakeholders eye government action amid mounting calls.