LONDON: Bodies representing Indian students , UK academics and UK universities have slammed plans by Labour to impose a levy on international students to pay for maintenance grants for domestic students from low-income families at university or college, saying it will put off international students and hit university finances hard.
UK education secretary Bridget Phillipson pledged to introduce the new means-tested maintenance grants by the end of this parliament in her speech at the Labour Party conference on Monday.
The grants will be fully funded by a new international student levy, the Labour Party confirmed, saying this would “ensure revenue from international students is used to benefit working-class domestic students”.
The immigration white paper published in May had proposed a 6% levy on international student fees.
INSA UK president Amit Tiwari said a 6% levy risked pricing Indian students out of Britain’s higher education market.
In the year ending June 2025 Indian students were the second-largest cohort, after Chinese students, to study in the UK, with 98,014 study visas granted.
“Indian students alone contributed over £4 billion to the UK economy last year,” Tiwari said. “Adding a new charge will push them towards Canada, Australia and the US.”
Policy consultancy Public First predicts a 6% levy will lead to a loss of 16,100 international students in the first year, leading to a £240 million loss of fee income to the sector, and a loss of 77,000 international students in the first five years, leading to a loss of £2.2 billion.
The shortfall of funds could lead to 33,000 fewer places for British students in the first year, and 135,000 fewer places in five years.
Vivienne Stern, chief executive of Universities UK, said a levy would mean universities have even less of their scant resources to invest into expanding access.
Jonathan Simons, partner at Public First, said: “Around 40% of our universities are currently in deficit; a levy will lead to a further loss of jobs and places for UK students. There is a real danger that the very students govt wishes to help won’t be able to access a course at all because the international students won’t be there to subsidise them.”
“Treating international students as cash cows to fund maintenance grants amounts to robbing Peter to pay Paul,” said Jo Grade, general secretary of University and College Union. “This country is already charging international students through the roof.
UK education secretary Bridget Phillipson pledged to introduce the new means-tested maintenance grants by the end of this parliament in her speech at the Labour Party conference on Monday.
The grants will be fully funded by a new international student levy, the Labour Party confirmed, saying this would “ensure revenue from international students is used to benefit working-class domestic students”.
The immigration white paper published in May had proposed a 6% levy on international student fees.
INSA UK president Amit Tiwari said a 6% levy risked pricing Indian students out of Britain’s higher education market.
In the year ending June 2025 Indian students were the second-largest cohort, after Chinese students, to study in the UK, with 98,014 study visas granted.
“Indian students alone contributed over £4 billion to the UK economy last year,” Tiwari said. “Adding a new charge will push them towards Canada, Australia and the US.”
Policy consultancy Public First predicts a 6% levy will lead to a loss of 16,100 international students in the first year, leading to a £240 million loss of fee income to the sector, and a loss of 77,000 international students in the first five years, leading to a loss of £2.2 billion.
The shortfall of funds could lead to 33,000 fewer places for British students in the first year, and 135,000 fewer places in five years.
Vivienne Stern, chief executive of Universities UK, said a levy would mean universities have even less of their scant resources to invest into expanding access.
Jonathan Simons, partner at Public First, said: “Around 40% of our universities are currently in deficit; a levy will lead to a further loss of jobs and places for UK students. There is a real danger that the very students govt wishes to help won’t be able to access a course at all because the international students won’t be there to subsidise them.”
“Treating international students as cash cows to fund maintenance grants amounts to robbing Peter to pay Paul,” said Jo Grade, general secretary of University and College Union. “This country is already charging international students through the roof.
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