Question to the Department for Education:

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 higher education institutions in the context of the Office for Students' press release entitled Significant challenges continue to face higher education finances – with nearly half facing deficits in 2025-26, published on 20 November 2025.

The International Student Levy will require higher education (HE) providers to pay £925 per international student per year. This is broadly equivalent to a 4.5% fee, reduced from 6% proposed in the Immigration White Paper. Levy revenue will be fully reinvested into higher education and skills, including to reintroduce targeted maintenance grants.

To mitigate disproportionate impacts on smaller providers, a 220-student allowance will apply to each provider per year. The levy will be introduced in 2028/29 and paid one year in arrears to support financial planning.

An impact analysis published in November 2025 estimated that, in isolation, the levy would result in around £270 million in income losses to the sector in its first year. This impact analysis is accessible at: https://consult.education.gov.uk/international-student-levy-unit/international-student-levy/supporting_documents/international-student-levy-impact-analysispdf.

We have also announced a tuition fee cap increase in line with forecast inflation for the 2025/26, 2026/27 and 2027/28 academic years, and will legislate, when parliamentary time allows, to increase caps automatically for future years. Over the next five years, these uplifts could generate an additional £6 billion for HE providers, significantly outweighing the currently projected less than £1 billion levy cost.