The Effect of the U.K. Government’s Immigration White Paper on Universities and International Students

In May 2025, the U.K. government announced the Immigration White Paper(“Restoring Control over the Immigration System”), covering perceived issues of the current system and proposed solutions. The stated purpose of the government is to reduce overall immigration to the United Kingdom, including foreign students. 

Among the changes were a revision to the international student policy, imposing a new 6% levy on international student tuition fees with the stated aim to funnel funds back into the UK’s higher education and skills sector. In addition, the government plans on tightening regulations on schools that sponsor international students. Sponsors must meet the BCA(Basic Compliance Assessment) thresholds; a visa refusal rate of less than 10%, a course enrollment rate of at least 90% and a course completion rate of at least 90%. Finally, the UK Government plans on reducing the stay period of graduates to 18 months from the original two years. 

The UK government reasoning for such changes is to reduce international student numbers mainly because rapid growth in study visas (especially master’s courses and dependents) has contributed significantly to net migration, and many Graduate route visa holders are working in lower-skilled jobs than intended, meaning their economic contribution is lower than expected.

The Higher Education Policy Institute says the U.K. government’s proposed 6% levy on international student tuition fees could significantly affect university finances. In a June 30, 2025, commentary, University of Manchester President and Vice-Chancellor Duncan Ivison wrote that while the Labour government aims to use universities to support economic growth through research, innovation and skills development, the levy would reduce revenue that helps offset longstanding funding gaps in teaching and research. At Manchester, the policy could remove about £43 million a year by 2029–30, he said, limiting the university’s ability to invest in academic programs, research and regional development.

An Aug. 8, 2025, HEPI analysis estimated the levy would cost English universities a combined £621 million annually. The institutions projected to face the largest losses include University College London at £42 million, Manchester at £27 million and King’s College London at £22 million. The analysis noted the sector currently generates £10.3 billion a year from international student fees. HEPI said the levy could force universities to cut spending on teaching and research or increase costs for students, which might reduce the United Kingdom’s competitiveness in attracting international applicants.

The group also said it is unclear whether revenue from the levy would be returned to higher education. Combined with other policy changes, such as shorter post-study work rights and stricter compliance rules, the measure could contribute to financial pressures and affect international enrollment.

It is yet to be seen whether the U.K. government will follow through with these plans.