Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the potential impact of the cost of student visas on the finances of UK universities; and what steps her Department is taking to support higher education institutions facing financial pressures.

The department has not made an assessment of the potential impact of the cost of student visas on the finances of UK universities. However, the government continues to monitor the financial sustainability of the higher education (HE) sector and works closely with the Office for Students (OfS), to understand risks and pressures facing providers.

The OfS, as independent regulator of English HE providers, has statutory duties in relation to the financial sustainability of the sector. The government has a clear interest in understanding the level of risk across the sector and continues to work closely with the OfS to understand the sector’s changing financial landscape.

We increased tuition fee caps in line with inflation in 2025/26 and are also increasing tuition fee caps in line with forecast inflation in 2026/27 and 2027/28 and will legislate to increase tuition fee caps automatically for future academic years. Over the next five years, these uplifts could generate around £6 billion extra income for the sector.

HE providers are independent from government and as such must continue to make the necessary and appropriate decisions to ensure their long-term sustainability.

More broadly, the Post-16 Education and Skills White Paper sets out the government’s commitment to placing the sector on a more sustainable footing, supporting providers to drive efficiency, strengthen financial resilience, and adopt more effective operating models.

This government has taken a different stand on international students and we have spoken clearly about it. My right hon. Friend, the Secretary of State for Education has set out that we welcome international students who make a positive impact on the UK’s HE sector and our economy and society as a whole. The UK has a world class higher education sector with 4 universities in the top 10 and 17 in the top 100, alongside a wide array of high-quality institutions which can offer a fulfilling and enjoyable experience to international students from around the world.

The Immigration White Paper confirmed that we will retain the graduate visa but reduce its duration from 2 years to 18 months. This will maintain our competitive post-study offer whilst ensuring individuals on this route obtain employment in graduate level roles and contribute to the country’s skills needs more quickly.