As many of you will have seen yesterday, the UK Government delivered its annual budget, known as the Autumn Statement. This sets out the country’s spending and taxing plans for the year ahead.
The Chancellor of the Exchequer (UK Finance Minister) Rachel Reeves didn't mention students much in their speech to Parliament but there are important changes in the budget that will affect university students, especially changes around a new international student levy and maintenance grants.
First, what is the Autumn Statement?
- It’s the Government’s annual update on the economy and public finances.
- Delivered by the Chancellor of the Exchequer ( the UK’s finance minister).
- It includes tax changes, spending plans, and this year features policies that impact education, research, and living costs.
Key Announcements for Students
International Student Levy
- From 1 August 2028, universities will pay a flat fee of £925 per international student per year.
- This is equivalent to around 3.72% of international fee income across English Russell Group universities.
- The levy will raise £445m, which the Government says will fund targeted maintenance grants and skills development.
Why does this matter?
- The original proposal was a 6% levy, our lobbying of politicians has helped reduce this to a flat fee.
- Across Russell Group universities, this change will save students around £124m per year compared to the initial plan.
Next steps:
A technical consultation on the levy is open until 18 February 2026 - you can submit a response to this now. We’ll keep pushing for fair implementation.
Maintenance Grants for Home Students
Grants will return in the 2028 to 2029 academic year, for English students studying in the UK from low-income households. These will be targeted, and means-tested. They are in addition to maintenance loans but students won't have to pay them back.
Years 1-2 students will get between £500–£1,000
Year 3 onwards this will be £375–£750
This is good news but works out at roughly £20 per week for those on the highest grant, which will have a minimal impact on the need for students to undertake extra paid work.
Student Loans
Repayment thresholds and interest rates frozen for three years from 2027–28, as previously announced.
Research Funding
Total funding from 2026-2030 for UK Research & Innovation is £38.6bn with £8bn for Research & Development in nationally strategic areas.
Other Measures Affecting Students
Personal Taxation: Income tax and National Insurance thresholds frozen until 2031, meaning future pay rises may feel smaller.
Welfare: Two-child benefit limit removed from April 2026, supporting student parents.
Wages: Minimum wage rises from April 2026 (8.5% for under 20s, 4.1% for over 21s) good news for student workers, though prices may rise too.
Our Work Behind the Scenes
We’ve been working hard with Russell Group Students’ Unions and Students’ Union UCL to influence these decisions:
- Pushed back against the original 6% international levy proposal.
- Advocated for targeted maintenance support for students.
- Engaged with policymakers to protect research funding and student welfare.
You can read more about our pre-budget work here:
- Explore the Russell Group Students’ Unions - a collective representing more than 750,000 students
- Find out how we've been working to influence the government and make changes on your behalf
What’s Next?
We’ll be working to ensure your the levy and grants are implemented fairly, reducing the impact on students as much as possible.
Want to have your say on the international levy? The Government’s consultation is open until 18 February 2026.