UK poised to spend up to £450m a year to equalise fees for EU students if granted access to Made in Europe scheme

Ministers have drawn up plans to let EU students pay the same tuition as UK nationals and would compensate universities for the difference, but officials say the offer is conditional on Brussels allowing the UK into the Made in Europe industrial programme.

Ministers in London have prepared proposals to allow students from European Union countries to be charged the same tuition fees as British students, officials told the Guardian. The government is reportedly willing to underwrite the cost to higher education institutions, at an estimated maximum of £450 million a year, but only if Brussels agrees to let the UK join the EU’s Made in Europe industrial programme.

Plan details

Under the plans, EU nationals arriving to study in the UK would be eligible for domestic fee rates rather than higher international fees. Government sources say Westminster would provide compensation to universities to cover the shortfall that would result from charging EU students the lower, domestic rate.

Conditional offer

Officials emphasised the proposal is contingent on the UK gaining access to the Made in Europe scheme, an industrial cooperation programme run by the EU. According to the account given to reporters, ministers view the fee concession as part of a package of arrangements to be discussed with Brussels, rather than a unilateral change in UK policy.

Political and financial implications

If implemented, the measure would involve substantial public expenditure and would alter the financial calculus for universities that rely on higher international tuition. It is also likely to figure in wider discussions about post-Brexit collaboration between the UK and the EU. It remains unclear what timeline ministers have for reaching agreement with EU counterparts or what conditions Brussels might seek in return.

Responses from universities and EU institutions have not been reported in the sources seen by this agency. The proposal, as described by officials, is subject to negotiation and would require formal approval before any change to fee status or funding arrangements could take effect.