Select committee: Education Committee
Conclusion 52
9th Report - Higher Education and Funding: Threat of Insolvency and International Students
Published 12 May 2026
Addressed to Department for Education
Education Committee Higher Education and Funding: Threat of Insolvency and International Students All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We heard strong opposition from the higher education sector to the International Student Levy. They are concerned they may not be able to pass on the extra cost to students through higher fees and will struggle to absorb the additional financial cost given the sector’s wider financial difficulties. We were told by the Chair of the Migration Advisory Committee that he expects in the long run the cost will be passed on to international students. The Government told us that the funding of maintenance grants through the levy would tangibly demonstrate the benefits that international students bring to the UK higher education system, particularly through benefiting disadvantaged students in England. (Conclusion, Paragraph 275)
From: Education Committee, 9th Report - Higher Education and Funding: Threat of Insolvency and International Students (HC 807), 12 May 2026
Government response
The government responded to the whole report on 22 July 2026 (deadline 12 July 2026).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government welcomes the report and sets out its position on each recommendation, accepting a few, partially accepting several, rejecting others and stating that many are covered by "plans already in place".
- On insolvency, the government rejects a bespoke special administration regime, saying it is "not currently persuaded" the case has been "sufficiently demonstrated", and that intervention is not the default response.
- On teachers' pensions, it rejects the recommendation and does not consider additional financial support for higher education providers in England "appropriate", but says HM Treasury has confirmed the employer contribution rate will fall from 28.68% to 17.5% from April 2027, fixed for four years.
- It declines to commit to a timeline for reaching 80% cost recovery across all research funders, because the main drivers are "the decisions of independent and autonomous institutions".
- On international students, it says the levy will not start until 2028/29, with an allowance for the first 220 international students per year, and that maintenance grants of up to £1,000 will return from 2028/2029.