International student levy worries universities as budget contains little new for research
Levy of £925 per overseas student would fund disadvantaged students but there are concerns it could have an unpredictable effect on student numbers
With most of the government’s commitments to research announced already, the autumn budget contained little new on this front, but it did announce several decisions that will affect higher education. Most controversial is a levy on income from international students which will go towards maintenance grants for disadvantaged students studying eligible courses.
Universities will have to pay £925 per international student per year starting in August 2028 if its intake passes 220 overseas students a year. This represents a 4.9% levy on the average annual fee of £19,000 for an international student; the government had originally proposed a 6% levy. Government models estimate the levy will generate £445 million in its first year.