The education sector remains under intense financial pressure at all levels. In mainstream settings, budget challenges remain with increased demand for special educational needs and disabilities support. Independent schools continue to feel the impact of the change in VAT legislation, with more than 50 schools closing or announcing plans to close. Falling student numbers have led other schools to undergo mergers or acquisitions. Universities are also under significant financial pressures with falling international admissions and frozen fees resulting in courses and departments being closed. The recent merger of the Universities of Kent and Greenwich may be the first to come in a series of mergers/collaborations. The resulting impact on student/parent choice and the quality of teaching and resources is likely to be a significant risk for educational institutions but might create significant opportunities for those able to provide compelling, high quality specialist or differentiated programmes.