UK Higher Education Sector Criticises Proposed International Student Fee Levy

By Vaidant May 15, 2025
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The UK higher education sector has voiced strong opposition to a newly proposed levy on income from international student tuition fees, branding the measure “deeply controversial.” Outlined in the government’s latest immigration white paper, the suggested levy would reclaim an estimated 6% of revenue generated from international students and channel it into the UK’s domestic skills and education system.

Although the proposal remains under consultation, with final details expected in the Autumn budget, education leaders across the UK have expressed grave concern. Many argue that the measure would place further financial pressure on universities already grappling with budget shortfalls. According to the Office for Students, 43% of English higher education institutions are forecasting deficits for the 2024–25 academic year.

Tim Bradshaw, Chief Executive of the Russell Group, described the proposed levy as a matter of “serious concern” and warned it could exacerbate funding inequalities across the sector. Vivienne Stern, Chief Executive of Universities UK, urged the government to “think carefully” about the long-term implications, cautioning that the move could undermine the UK’s global competitiveness as a study destination.

The white paper also confirms a reduction in the Graduate Route visa from two years to 18 months. While the decision to retain the post-study work route was welcomed in principle, key figures such as Nick Hillman of the Higher Education Policy Institute (HEPI) noted that the cut would still be seen as a “blow” to the UK’s attractiveness to international students.

The impact may be particularly significant for Indian students, who represent a substantial share of the UK’s international student population. NISAU UK (National Indian Students and Alumni Union) highlighted that post-study work opportunities are a critical factor in the decision-making process for 70% of Indian applicants.

As the UK government seeks to reshape immigration and education policy, the higher education sector is calling for clarity and caution. Universities are urging policymakers to ensure that the country remains an open, welcoming, and competitive destination for international talent.

With the Autumn budget expected to provide further details, the coming months will be pivotal in determining the direction of UK international education policy.

Source: THE PIE NEWS

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