Under political pressure over immigration issues, UK Prime Minister Keir Starmer announced a new visa and immigration policy, significantly increasing tuition fees for non-EU students and introducing a 6% tax, affecting the financial stability of universities.
On Monday, Prime Minister Keir Starmer revealed the UK’s new immigration policy, which has sparked concern among foreign students. The policy mandates that non-EU undergraduate students will now face tuition fees ranging from £20,000 to £41,000. For the first time, a 6% tax will be imposed on international students, adding further financial strain. Additionally, students will need to secure a graduate-level job or return to their home countries, marking a shift in the UK’s efforts to curb immigration.
As part of the policy, foreign students will be limited to 18 months of stay after completing their studies, a reduction from the previous two years. According to preliminary estimates by Universities UK, this new charge could result in a loss of £600 million for universities.
University leaders have raised concerns that the policy could threaten the financial sustainability of the higher education sector, as income from international students supports high-cost programs, such as medical courses. However, the government maintains that the funds raised from this tax will be reinvested into the higher education system to encourage British students to enroll, thus enhancing domestic workforce skills.
Vivienne Stern, CEO of Universities UK, highlighted the impact of international students on the funding of expensive courses. She questioned how British students would benefit if the cost of these programs is shifted further onto international students. Stern emphasized that the current financial challenges in the education sector, coupled with this new tax, will exacerbate difficulties for universities.
The Russell Group, which represents 24 of the UK’s leading public research universities, reported that in 2023-24, international students made up a significant portion of their income. The extra funds generated from high international student fees have helped bridge a £2,500 funding gap per British student for their courses.
As the UK navigates these changes, universities are calling for a more constructive approach to support them through the financial pressures they face.
LND/BG
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