The future of higher education appears to be at a tipping point in Northern Ireland, with budgetary issues threatening places for local students and progress on a review of structural funding issues seemingly stalled. 

In the absence of a national budget, Queen’s University Belfast (QUB) has warned that the contingency budget proposed by the Department for the Economy (DfE) amounts to a £13.5 million reduction in funding. 

Reductions to the teaching grant specifically equate to approximately 720 fewer undergraduate places at QUB, the university said. 

Northern Ireland’s universities are already struggling financially, with both QUB and Ulster University reporting respective deficits of £22.8 million and £20.2 million in 2024-25. 

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“The higher education and further education sectors have been operating in financially constrained circumstances for a significant period of time and the contingency budget brings the sustainability of teaching, learning, research and innovation into sharp contrast with other jurisdictions,” said John D’Arcy, former principal of The Open University in Ireland.

Margaret Topping, pro vice-chancellor for global engagement at QUB, said the institution was weighing up its options, with little over two months to go until the start of the new academic year. 

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While politicians have confirmed talks will take place over the summer to try to agree a multi-year budget, Topping said the timing is “not ideal”. 

Amy Smith, the National Union of Students’ representative in Northern Ireland, added that students “need to hear reassurances” as they may be “worrying about what this means for them”. 

Even if politicians can agree on a long-term plan – something that has not happened in 10 years – the issues facing universities in Northern Ireland go beyond the latest contingency budget. 

Like many UK universities, institutions in Northern Ireland are experiencing a downturn in international student numbers, leading their income to decline. But in contrast to England and Wales, domestic number caps mean universities are unable to grow their local student numbers to make up for the shortfall. 

Currently, students from the Republic of Ireland (ROI) are included in the domestic cap. Topping said that while QUB is keen to welcome students from across the border, the university believes they should be removed from the cap – warning that including them means students from Northern Ireland are missing out on places. 

Because Leaving Certificate results are announced several weeks after A-level results, this creates a period where universities cannot confirm places for Northern Irish students who may have missed the grades needed to be guaranteed a place, as the university has to hold these places for ROI students who may have secured the necessary grades.

In the meantime, Topping said, those local students often receive and accept offers from universities in other parts of the UK.

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This creates a “built-in imbalance whereby Northern Irish students who want to stay and study in Queen’s – who want to stay here and study, work, contribute here – are basically being exported”. 

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Smith also called for changes to the capped system, arguing number controls “remain one of the clearest barriers to opportunity for young people in Northern Ireland”. 

“Every year, capable students are denied the chance to study here at home, not because they lack the ability or ambition, but because there are not enough funded places available.”

The DfE launched a review of higher education funding in 2025, but some in the university sector point to the lack of progress made over the past year. 

“Its pace has been disappointing with only one part completed to date,” said D’Arcy, adding that opposing political views on tuition fee levels “pose a real challenge for officials and the minister”. 

Caoimhe Archibald, minister for the economy, previously ruled out raising tuition fees after universities called for an increase, while students also remain opposed to fee increases. 

“The answer cannot be to ask students to pay more,” Smith said. “The executive must invest in expanding funded university places, so more people can access higher education in Northern Ireland and our universities can continue to support the students, communities and economy they serve.”

Ian Greer, vice-chancellor of QUB, has called for a fresh, independent review of higher education to be launched and “a renewed focus on a policy commitment to ambitious restructuring of the higher education sector in Northern Ireland”. 

D’Arcy said that “there needs to be a mindset change in Northern Ireland about how higher education and further education is funded within the wider educational journey experienced by people here,” adding that university places shouldn’t be seen as a “luxury”. 

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The DfE was contacted for comment.

helen.packer@timeshighereducation.com