Background: Teacher education has been the subject of a seven-year review culminating with the issuing of a consultation document Teacher education in a climate of change: The way forward (Department for Employment and Learning and Department for Education 2010). Issues of rationalisation, demographic trends, the over-provision of teachers and the cost of initial teacher education inter alia dominated the agenda. Purpose: The paper seeks to assess the ways in which the current economic climate, student tuition fees, reduced income from government and the declining demographic situation will affect recruitment, on the profile of applicants to teacher education, on widening access and participation, and on models of teacher education. As the environment becomes increasingly globally competitive, issues surrounding the nature, quality, cost and content of programmes will be analysed. Sources of evidence: Data that informs the paper derive from multiple sources including education policy documents, review and strategy documents, research reports and relevant research literature. It will be complemented by the author's knowledge and experience as a teacher, teacher educator and international researcher, and sustained contributor to the formulation, implementation and evaluation of teacher education policy in NI. Main argument: With the predicted reduction in expenditure for higher education in NI likely to be considerable over the next four years, substantial cuts in teacher education are inevitable. At a time when participation rates for under-represented groups are being encouraged, higher student fees and reduced quotas will impede the goal of achieving a more equitable teaching workforce. Rather than concentrating on the uncertainties that characterise the current economic climate, it will be important not to focus exclusively on survival and sustainability but on longer-term opportunities for transforming and re-conceptualising teacher education. Conclusions: All of the current national teacher education review documents in England, Republic of Ireland, Northern Ireland and Scotland highlight the need to improve teacher education. Irrespective of the constraining global financial situation, a career-long model for teachers' professional learning is overdue. It is possible, even in financially challenging circumstances, to realise the opportunities for creative change to ensure that teacher education maintains its high standards and reputation. Enhanced resourcing by itself does not necessarily guarantee enhanced provision.