International student levy could cost English universities £600m a year | University funding

The government’s proposed levy on international student fees could cost universities in England more than £600m a year if it goes ahead, a study has found.

The 6% surcharge on tuition fees paid by overseas students, floated in the Home Office’s recent immigration white paper, would particularly hit leading universities such as University College London (UCL) and the University of Manchester, based on the figures compiled by the Higher Education Policy Institute (Hepi).

The policy would leave universities in a difficult decision over whether to pass on the cost of the levy to students or absorb some or all of it from the fees they charged, in effect cutting their income.

Nick Hillman, Hepi’s director, said: “The proposed levy on international students comes up in just about every…