Fears international student levy will hit Yorkshire's university cities
Students on courses deemed to support the industrial strategy will receive maintenance grants, however the funding - via an extra levy on the international students - could have a major impact on Yorkshire’s universities.
The Education Secretary Bridget Phillipson made the announcement at Labour’s annual conference in Liverpool, criticising the Conservatives for treating universities “as a political battleground, not a public good”.
The grants are intended to support students studying “priority courses” in levels four to six, which include the certificate of higher education and higher national diploma qualifications, and undergraduate degrees.
They will be funded by a new levy on international students, which will apply to English higher education providers only, with more information to come in this autumn’s Budget.
The move was welcomed by Northern leaders, however concerns were raised on the impact the levy could have on international students, which provide significant revenue to regional universities.
Henri Murison and John Dickie, the chief executives of the Northern Powerhouse Partnership and BusinessLDN said: “We welcome the return of maintenance grants, which will make a real impact on students from lower-income backgrounds and help more young people access higher education, both in London where notable progress has been made on getting children from deprived backgrounds into university and in the north where despite the progress to date there unquestionably remains more to do.”
They added that they were “concerned that funding this commitment through a levy on international student fees risks undermining the financial sustainability of universities”.
They also warned that domestic students could lose out on the subsidy which international students effectively provide.
Research from Public First found that if universities raise fees to cover the full cost of the 6 per cent levy, the UK could lose more than 77,000 international students in the first five years.
This will have a particular impact on regional economies, like York, Leeds and Sheffield.
In fact, Leeds Central and Headingley and Sheffield Central will be the two constituencies worst affected in the entire country.
Leeds will be particularly badly hit, according to the research, with four major institutions in the city.
They will each lose more than £30m to the economy, as international students use local shops, hospitality and infrastructure, as well as the lower investment by universities and accommodation providers.
The research finds this would lead to difficult decisions for universities, around 40 per cent of whom are currently in deficit, including the potential further job losses, which would also impact local economies.
Public First’s Jonathan Simons said: “Our research shows the impact of a levy on international students will be devastating, especially for regional economies.
“Around 40 per cent of our universities are currently in deficit. A levy will lead to a further loss of jobs and places for UK students, and a damaging cut to vital world leading research and investment.”
Mr Simons added: “There is a real danger that the very students the Government wishes to help won’t be able to access a course at all – because the international students won’t be there to subsidise them.”
Dr Tim Bradshaw, chief executive of the Russell Group, said: “The proposed levy on international students will damage the sector and the economy, depleting the resources universities have to spend on vital teaching, research and student support.
“Universities like those in Yorkshire spend millions each year on widening access, including bursaries and hardship funds for students who need them most. They also invest in their cities through the local skilled workforce, ground-breaking R&D and regional infrastructures. If the proposed levy goes ahead, it will add greater pressure on an already financially precarious sector to the detriment of the very students and communities that government is looking to support.
“Reinstating maintenance grants has been a long-standing campaign for us because financial barriers are a huge challenge for students – especially those from the most under-represented backgrounds.
“But government needs to make sure any new policy on grants truly helps students meet day-to-day costs, and is not at the expense of the wider funding universities are already investing in teaching, access and regional growth.”