UK student groups warn Labour of losing Indian talent if levy imposed on international students
UK student bodies and universities are raising concerns over Labour's plan to introduce a levy on international students, aimed at funding maintenance grants for domestic students. They warn this charge could deter global talent, significantly har...
By ET Online | Updated:
Agencies
Student bodies and university groups in the UK have raised concerns over Labour Party plans to introduce a levy on international students. According to a report by The Times of India, they said the proposed charge, intended to fund maintenance grants for domestic students from low-income families, could deter international students and harm university finances.
UK Education Secretary Bridget Phillipson announced the plan at the Labour Party conference on Monday. The maintenance grants would be means-tested and fully funded by a new levy on international student fees. Labour said the measure would “ensure revenue from international students is used to benefit working-class domestic students.” The immigration white paper had suggested a 6% levy.
Amit Tiwari, president of INSA UK, warned that a 6% levy could price Indian students out of the UK higher education market. In the year ending June 2025, Indian students were the second-largest group after Chinese students, with 98,014 study visas granted. Tiwari said, “Indian students alone contributed over £4 billion to the UK economy last year. Adding a new charge will push them towards Canada, Australia and the US.”
Research by consultancy Public First predicts that a 6% levy could reduce international student numbers by 16,100 in the first year, causing a £240 million loss in fee income. Over five years, the decline could reach 77,000 students, reducing revenue by £2.2 billion.
Jonathan Simons, partner at Public First, cautioned that around 40% of UK universities are already operating at a deficit. “A levy will lead to a further loss of jobs and places for UK students. There is a danger that the very students the government wishes to help won’t be able to access a course because the international students won’t be there to subsidise them,” he said.
Student groups and universities are urging the government to reconsider the levy, warning that it could weaken the UK’s appeal to global talent and affect the financial stability of higher education institutions.
(With TOI inputs)
UK Education Secretary Bridget Phillipson announced the plan at the Labour Party conference on Monday. The maintenance grants would be means-tested and fully funded by a new levy on international student fees. Labour said the measure would “ensure revenue from international students is used to benefit working-class domestic students.” The immigration white paper had suggested a 6% levy.
Amit Tiwari, president of INSA UK, warned that a 6% levy could price Indian students out of the UK higher education market. In the year ending June 2025, Indian students were the second-largest group after Chinese students, with 98,014 study visas granted. Tiwari said, “Indian students alone contributed over £4 billion to the UK economy last year. Adding a new charge will push them towards Canada, Australia and the US.”
Research by consultancy Public First predicts that a 6% levy could reduce international student numbers by 16,100 in the first year, causing a £240 million loss in fee income. Over five years, the decline could reach 77,000 students, reducing revenue by £2.2 billion.
Jonathan Simons, partner at Public First, cautioned that around 40% of UK universities are already operating at a deficit. “A levy will lead to a further loss of jobs and places for UK students. There is a danger that the very students the government wishes to help won’t be able to access a course because the international students won’t be there to subsidise them,” he said.
Student groups and universities are urging the government to reconsider the levy, warning that it could weaken the UK’s appeal to global talent and affect the financial stability of higher education institutions.
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(With TOI inputs)
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