A proposed 6% levy on international student tuition fees could cost English universities over £600 million annually, according to a study by the Higher Education Policy Institute (Hepi). The surcharge, suggested in the Home Office’s immigration white paper, has triggered concern among vice-chancellors who fear it will damage budgets and global competitiveness.
Top institutions like University College London (UCL), the University of Manchester, and Imperial College London would be hit hardest, with UCL alone facing a £43 million charge. The policy forces universities to choose between passing the cost to students or absorbing it—potentially slashing their income.
Nick Hillman, Hepi’s director, warned the levy is “a shadow looming large” over the sector, with uncertainty around how the funds will be used. Though the government claims the money will support higher education and skills, details remain vague.
The Home Office predicts a drop of 14,000 international students annually, though universities argue the real impact could be greater—especially following recent visa restrictions. Vivienne Stern of Universities UK urged ministers to reconsider, saying the levy risks undermining the UK’s appeal as a study destination and weakening one of its most successful export sectors.
