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Government Estimates Universities Will Lose £1bn From International Student Levy

The updated analysis says the fee will cut university income and could reduce research cross-subsidies as institutions weigh higher tuition charges.

  • On Wednesday, the Department of Education published an updated analysis revealing the International Student Levy will cost English universities up to £1bn over three years, superseding previous estimates.
  • The Andy Burnham government reaffirmed the policy to reduce net migration, imposing a £925 annual fee per international student beyond a 220-student exemption threshold, targeting £445 million in first-year public revenue.
  • Government analysis anticipates the levy will decrease international student income, reducing cross-subsidies available for research; less prestigious providers face greater vulnerability than institutions like Oxbridge and Imperial College London.
  • Vivienne Stern, chief executive of Universities UK, called the levy a "daft policy" with unrealistic projections, while Helen Hayes, chair of the education select committee, said figures "bring little comfort" to the sector.
  • Chancellor John Healey's Budget also revealed plans to restore the two-year graduate visa for international students, though Nigerian officials warn rising tuition threatens long-standing educational ties between Britain and Nigeria.
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La Razón broke the news in Madrid, Spain on Monday, October 26, 2026.
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