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Covid compensation claims leave universities ‘very exposed’

UCL settlement opens door to more ‘risk-averse’ institutions having to pay up over disrupted pandemic-era teaching, say lawyers

Published on
February 18, 2026
Last updated
February 18, 2026
Source: Matthew Horwood/Getty Images

Universities have been warned to brace themselves for more students demanding compensation for disruption to their teaching after a landmark case was settled by UCL.

With legal action now starting against 36 universities, representing 170,000 students, lawyers warned that the final bill for the sector could be higher still as questions continue to be asked about whether changes made to teaching during the pandemic and industrial action breached contracts.

UCL accepted no liability when agreeing to settle with its current and former students and it has not revealed how much compensation it has agreed to give each of the 6,000 involved in the claim. The  reported the total cost of the settlement to the university was £21 million. 

UCL has argued this will still cost less than the legal fees required to contest the case in court and Robert Slade, a solicitor in the education department at law firm HCB Group, said “risk-averse” universities now facing action may also try to settle cases in a bid to resolve matters quickly. 

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“I think we’ll see a lot more settlements before it gets to court, and I think that a lot of these universities will be looking at ways of addressing the sort of impact of this moving forward,” he said.

The outcome of the UCL case, which had previously been contested by the London-based university, will give “confidence” to other students now coming forward, according to Rhys Palmer, education law solicitor at Robertsons Solicitors.

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Institutions now facing action include some of those who have experienced the worst financial difficulties such as Cardiff University and the universities of Kent and Nottingham.

The group behind the action, Student Group Claim, has successfully harnessed social media and online advertising to get more students to sign up. 

Palmer said that while the “merit of each case must be weighed up” universities potentially risk “significant financial exposure”.

He said it was clear that “some students justly deserve” compensation for “the isolation, the lack of delivery of the courses that they expected and the campus experience generally that they were sold”. 

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“The fundamental principle is that students should receive the teaching and campus experience that they paid for. If they did not, then there is a credible legal means of seeking redress,” he said.

Priscilla Adu, head of education law at NBB Law, added that there will be “concern” from universities after UCL’s announcement. She said: “There is a high risk that a number of universities may have to pay up, because potentially you’re looking at breaches of contract in the way that some universities have delivered courses to students...Especially considering the public scrutiny and cost implications that come with litigation.”

However, Trish D’Souza, head of education (Cardiff) at Browne Jacobson, said whether the further claims are successful all comes down to the individual cases. 

“It may not necessarily be the case that other universities that have been targeted by the class action will follow UCL’s lead, since the claims all depend on their own facts. Whether or not this involves them joining forces as defendants will be interesting, as while a united front could strengthen their hand in court, it may be more difficult to achieve this if there are key differences in how they operated or engaged their students during the pandemic, for example.”

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She said “all universities, not just the 36 institutions that received legal letters” should prepare for any claims, noting they should consider compiling an audit trail of how they communicated with students, assess the terms of their student contracts and be able to explain “how they mitigated government-mandated closures with online teaching and provided an experience as close as possible to what would typically be expected without being able to attend campus”. 

juliette.rowsell@timeshighereducation.com

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Reader's comments (8)

Surely, Universities have already anticipated these costs in their forthcoming budgets? I also wondered if such eventualities are not covered by insurance, as I believe "notifiable disease" causing business interruption is included in some policies thoug maybe not standard.
I am of the opinion that students deserve compensation for such a diminished experience. However, there is some irony that it is the frontline staff (who worked around the clock to keep unis running) who may well foot the bill for these costs via further redundancies and further real-terms pay cuts, rather than the senior management who actually made the decisions leading to the claims.
One reason that such settlements will happen is that the UK HE Industry does not want the High Court exposing the vagueness of the U-S contract and also ruling on the application of the Consumer Rights Act - which is a pity because we need definitive case-law as well as a standardised fair contract. The similar cases in the US have settled at pretty small sums per S (100-500 USD each) but, of course, that adds up when looking at Xk SS. All this could cost the sector (?) £100m or so - on top of the compensation it should now be routinely paying out for disruption to teaching/examining caused by industrial action. See discussion within ‘The Student Contract’ chapter at ‘The Student as Consumer’ in Farrington & Palfreyman, ‘The Law of Higher Education’ (Oxford U Press, third edition, 2021) - as the book went to press we were trying to keep up with the likely legal implications of how Us were responding to COVID and subsequently at the online updating we monitored the US cases/settlements… So none of this latest should be a surprise - and all thanks to the no-win/no-fee lawyers getting some sort of fair deal for the student-consumer that is failed by both the HE industry and by its regulators (OfS, CMA, OIA - although the ASA can take some credit for calling-out shoddy advertising by some Us…).
"on top of the compensation it should now be routinely paying out for disruption to teaching/examining caused by industrial action." Indeed, this may be the real issue.
I find it interesting that UCL in this instance settled out of court on this one. I may be wrong but I have gained the impression that our VCs and Senior Management in the past were usually quite litigious, especially in relation to staffing issues. They were quite willing to use their expensive lawyers (in the manner of Trump) when the money was coming in. Now they maybe a little more cautious in going to court to avoid the high costs associated as in this case? If so this is a good thing on the whole. My own opinion, which may or may not have merit, is that at least some of the costs of this wretched business should come from the exorbitant salaries and annual bonus paid to senior management and not out of general expenditure.
Just a load of lawyers try to extort money. Many students got much higher degrees than they should have due to Covid. They got Firsts hand over fist because Universities made too many allowances and marking was way too generous.
Well yes and you know you are in trouble when the "No win-No fee" brigade pile on the bandwagon to make an easy buck!
Seems a bit of a cop out to "settle"

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