Policy update – June 2025

Ed Bridges, Head of Policy and Public Affairs, Academy of Social Sciences 

Immigration white paper

The UK Government’s long-heralded white paper on immigration was released in May, and included proposals to reduce graduate visas to just 18 months, as well as to impose a new levy on income from international student fees. Whilst the white paper notes that international students generate an estimated £20.65 billion in exports through tuition fees and living expenses and have a “significant positive impact to the UK economy”, the document argues that these benefits should be shared, and that the new levy will be reinvested into the higher education and skills system. Further details of the scheme will come in the autumn budget.

The news was met with much concern from the sector, with Research Professional being particularly excoriating in their newsletter, arguing that “the UK is deliberately making itself less competitive as a destination for international students – at a time when it should be benefiting from the damage Trump has wrought upon American universities. In turn, this will make the already catastrophic financial situation in British universities even worse… The white paper’s proposals are, in short, a kick in the teeth to the higher education sector.”

That conclusion is hardly refuted by the Home Office’s own analysis which stated: “student visa demand could fall by up to 7,000 main applicants per year…with a 6% levy”.

Perhaps more positively, the white paper did set out plans to make the UK’s global talent visa route more straightforward, as a means to encourage a greater number of global scientists to come to the UK. The UK Government says it is seeking to ensure that highly skilled people can access its targeted routes for the “brightest and best” global talent. Visa routes open to scientists include the High Potential Individual (HPI) and Global Talent routes, as well as the Skilled Worker route. While the UK Government promises in the white paper to review, expand and improve the former two routes, the latter is set to be curbed.

Other news in brief

  • OfSE financial sustainability report: 43% of universities in England are expecting to be in a financial deficit by this summer, according to the Office for Students in England. Their annual financial sustainability report found that 117 of 270 higher education institutions (43%) expected to be in deficit by July – despite course closures, job losses and selling off assets. This third consecutive year of worsening finances was mainly driven by a fall in international student numbers, it said, particularly following visa changes in January 2024. Meanwhile, the number of international students was almost 16% lower last year than previously expected. The report went on to say that universities are closing courses and selling buildings to cut costs, but “significant reform and efficiencies” are needed to turn the tide.
  • Ten-year budgets for R&D: The UK Government’s science minister, Patrick Vallance, announced plans to set ten-year budgets for R&D, with the aim of giving certainty for research organisations and unlocking more business investment, with the hope of providing longer-term funding for infrastructure, such as large-scale research facilities and equipment. The plans do not just apply to DSIT and its agencies, including UKRI, and will be used by all departments and public bodies funding R&D. DSIT also laid out the criteria for when long-term budgets would be set, having developed the principles for ten-year funding with the Treasury. Specific funding will be determined in the coming weeks ahead of June’s spending review. WonkHE has a good overview of the story.
  • Strategic Priorities Grant cut: University budgets have just got even tighter as the Office for Students in England published the guidance on the Strategic Priorities Grant for 2025-26. Next year’s allocation of £1.3 billion for high-cost subjects in English institutions represents a cut of £108m on the grant for the current academic year. In her letter to interim OfS chair David Behan, Bridget Phillipson said she wants to see the Strategic Priorities Grant focus on “nursing, midwifery and allied health; and very high-cost [science, technology, engineering and maths] subjects” – setting out cuts in funding for media studies, journalism, publishing and information services courses.
  • REF sub-panel chairs unveiled: In late May, the four UK higher education funding bodies, working with the REF Main Panel Chairs and Advisory Panel members, appointed chairs and deputy chairs for the 34 expert sub-panels that will assess research in REF 2029, 13 of which are Fellows of the Academy.
  • HE and science disconnect in UK Government?: Digging by Research Professional (£) found that only four meetings had taken place since the UK General Election last July between the government’s science and higher education ministers. It revives the issue of whether the portfolios should be split between two departments at a time when the UK’s university sector is facing its biggest financial crisis in recent history. Patrick Vallance, science minister in the Department for Science, Innovation & Technology, and Jacqui Smith, skills minister with responsibility for higher education in the Department for Education in England, met formally on 23 July and 17 September last year and on 9 January and 1 April this year. The disconnect between the two portfolios was criticised by Jo Johnson, twice a Conservative minister for both universities and science when the briefs were combined, and by Nick Hillman, director of the Higher Education Policy Institute, who said: “Would it sound facetious to say they should be meeting at least every week? Such a high proportion of UK R&D is done in our universities that this issue is different here to in other countries”.
  • REF reforms resistance: An open letter from the London Universities’ Council for Academic Freedom (Lucaf) identified multiple concerns about planned reforms to the 2029 Research Excellence Framework. Amongst other things, the letter highlighted the potential “mountain of new bureaucracy” which it might herald, as well as a potential threat to institutional autonomy, and concerns about planned changes to the new people, culture and environment section which is set to account for 25% of institutions’ overall REF score.
  • Northern Ireland tuition fees: With the higher education sector creaking across all four nations of the UK, politicians at Stormont have been exploring raising tuition fees for NI-domiciled students by £1,000 to ease financial pressures. It follows a call from Queen’s University Belfast, Ulster University and the Open University in NI for such a move, but has met with resistance from the executive’s economy minister.
  • UKRI criticism: UKRI “lacks any measurable objectives”, according to a report from the National Audit Office. The report went on to say that whilst UKRI has “helped to shape and support a successful and internationally renowned research and innovation system in the UK… there is a lack of coordination in how government expects UKRI to support the delivery of a range of objectives”.