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Policy 24 Sep 2026
Russell Group urges chancellor to scrap international student levy
By Chris Parr
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Image: Russell Group
Mission group chief Libby Hackett writes to John Healey ahead of autumn budget
The government should abandon plans to introduce a £925 levy on every international student recruited by universities, the head of the Russell Group has said in a letter to the chancellor.
Ahead of the autumn budget next month, chief executive Libby Hackett (pictured) said the proposed levy would cost the university sector nearly £500 million a year and urged John Healey to discard the proposals.
Universities are viewing the Burnham government’s first budget as a chance to push against the international student levy, which was introduced by Starmer’s government.
“It is…a concern that 43 per cent of providers in England are forecast to be in deficit in 2025-26 with many reducing their investment in research and closing courses, impacting on jobs, student choice and the UK’s R&I pipeline,” Hackett wrote. “Given this context, we would urge government to abandon plans proposed under the previous leadership to introduce an international student levy.”
Maintenance grant funding alternatives
The government has said it intends to use money raised through the levy to reintroduce maintenance grants for disadvantaged students on some courses.
“We support the principle of reintroducing maintenance grants and increasing support for students facing financial barriers,” Hackett said. “However, funding grants through the [international student levy]—a revenue stream that is inherently sensitive to changes in global demand and migration policy—is the wrong approach, and risks creating uncertainty for students, government and universities.”
Applications for visas to study in the UK slumped in August —the most important month for international student recruitment—heaping further pressure on university finances.
Hackett said the government could “consider alternative ways of funding these grants, alongside a wider review of student finance and maintenance to ensure this is effectively supporting the most disadvantaged students”.
Earlier this month, Department for Education junior minister Josh MacAlister insisted the levy would be introduced in the 2028-29 academic year, although he suggested there could be further exemptions. Currently, the first 220 students recruited are not subject to the £925 fee. Nor are students educated by UK providers overseas.
“The department is considering the merits of exempting any additional groups of international students and will update on this in due course,” MacAlister said.
Innovation and growth
Elsewhere in her letter, published today, Hackett called on the chancellor to make investment in research and innovation “work harder for growth” and supporting “high-quality higher education and the skills pipeline”.
“An immediate measure, which would help provide some stability and confidence in the sector, would be for government to introduce the legislation needed to ensure that student fees continue to increase in line with inflation,” she said.
“Longer-term, there is an opportunity to consider how public funding and fees can support a better alignment between resource, delivery cost and outcomes, including greater per-student investment in high-cost, high-value and strategically important subjects.”
The full Russell Group budget submission has been published online .
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