Overseas Students: Fees and Charges
The question
To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of the proposed international student levy on the financial sustainability of UK universities; and what estimate her Department has made of the number of universities at risk of closure as a result of the combined effect of frozen tuition fees, inflationary pressures, and the proposed levy on international students.
Answered by Josh MacAlister
Higher education (HE) providers are independent from government and as such are responsible for managing their own finances. Tuition fees are not frozen - the department has announced increases to tuition fee limits in line with forecast inflation for 2025/26, 2026/27, and 2027/28. We will also legislate, when parliamentary time allows, to increase tuition fee caps automatically for future academic years.
Over the next five years, tuition fee limit uplifts could generate an additional £6 billion for HE providers, significantly outweighing the currently projected less than £1 billion cost of the International Student Levy. This approach ensures the sector benefits from compounding annual increases, delivering growing resources to support quality education and innovation.
The Office for Students (OfS) is responsible for monitoring and reporting on the financial sustainability of registered HE providers. The department will continue to work closely with the OfS to understand the financial implications of policy changes on HE providers.
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