English universities are facing a financial crisis and are proposing a deal to the government: allow them to raise tuition fees in exchange for reducing the number of international students. This plan, set to be detailed by Universities UK (UUK), aims to stabilize the financial situation of universities struggling with rising costs.
Currently, domestic undergraduate tuition fees in England are capped at £9,250, a limit that has remained since 2017. However, inflation has significantly eroded the value of this amount, forcing universities to rely heavily on higher fees from international students. Analysis suggests that universities need to charge around £12,500 per domestic student just to break even.
Vivienne Stern, UUK’s chief executive, emphasized the need for a balanced approach to international student numbers, particularly in areas where local services and housing are strained. “We don’t want to restrain growth in international student numbers, but we need to find sustainable solutions,” she said.
The proposed blueprint will call for tuition fees to increase in line with inflation and for more government financial support. It also suggests that universities voluntarily manage the growth of international students, especially in regions facing accommodation shortages.
Prime Minister Keir Starmer has committed to reducing net immigration in the UK, which adds a layer of complexity to the universities’ proposal. Recently, the Australian government introduced caps on international students, leading to a significant drop in their numbers, which could serve as a model for the UK.
Bridget Phillipson, the education secretary, indicated that she is exploring all options for university funding but acknowledged that there are no quick fixes. Meanwhile, the National Union of Students (NUS) has voiced concerns that increasing tuition fees would burden students, particularly those from disadvantaged backgrounds. Alex Stanley, the NUS vice-president for higher education, stated, “Students must not be expected to foot the bill for the university funding crisis.”
The UUK blueprint also advocates for the reinstatement of maintenance grants for disadvantaged students and an increase in maintenance loans in line with inflation. These measures aim to support students who are also experiencing financial stress.
The blueprint will further recommend that the government maintain a stable visa regime for international students, contrasting the previous Conservative government’s restrictions that led to declines in overseas student recruitment. Stern highlighted that international students should be removed from UK immigration statistics, as most return to their home countries after graduation.
In addition to these proposals, the blueprint will address the need for reforms in research funding and innovation. Labour peer Peter Mandelson will argue that the UK must improve its funding for cutting-edge science to remain competitive globally. Currently, universities are experiencing significant deficits in their research activities, with a reported £5.3 billion shortfall in 2022-23.
The Department for Education has acknowledged the challenges in higher education and is working towards ensuring financial sustainability for universities. A spokesperson said, “By bringing economic stability and growth, we can strengthen our higher education system and rebuild Britain.”
English universities are proposing to raise tuition fees while managing international student numbers to address their financial difficulties. This plan aims to create a more sustainable future for higher education in the UK.
