The UK government is prepared to spend up to £450 million a year so that students from the European Union can pay the same tuition fees as British students, if the EU lets the UK join its new “Made in Europe” industrial scheme, The Guardian reported on 1 November.
Nothing has been agreed. The offer is part of wider UK–EU negotiations ahead of a summit in Brussels on 20 November.
What is being offered
Since Brexit, EU students at UK universities have paid international fees, which can exceed £60,000 a year for some courses. The EU wants them to pay home fees instead, just over £9,000 a year in England. Under the plan reported by The Guardian, the government would compensate universities for the income they would lose.
The £450 million figure is the most expensive scenario, assuming a full cut to home fees and very high demand. Other scenarios would cost less, and one government official described the figure as speculative, according to reports of the story.
What the UK wants in return
“Made in Europe” is part of the European Commission’s proposed Industrial Accelerator Act, published in September. It would give European-made products preference in some public contracts and public support schemes. The UK currently falls outside the proposed definition of a European producer, which worries British industry, especially carmakers.
The UK’s minister for European relations, Hamish Falconer, has warned that leaving the UK out would mean “a weaker Europe”, Euronews reported. France, which had pushed for strict rules, has reportedly softened its position.
A change of position
The offer marks a clear shift. In March, UK government sources described home fees for EU students as a “non-starter”, EL Gazette reported at the time. EU diplomats have since discussed separating the fees question from the main deal and giving it six more months.
Fees are being negotiated alongside a youth mobility scheme. The UK could accept up to 80,000 young Europeans a year, according to reports, while some EU member states want 100,000 to 150,000 places.
Universities are wary
The Russell Group, which represents 24 leading UK universities, has opposed home-fee status for EU students. It warns of a cost to universities of around £570 million and more competition for British students, including those from disadvantaged backgrounds. It is not yet clear whether government compensation would meet those concerns.
EU student numbers have fallen sharply since Brexit. Nearly 120,000 EU students (excluding Irish students) studied in the UK in 2015–16. By 2024–25 the figure had dropped to 63,600, Times Higher Education reported.
Open questions for Scotland, Wales and Northern Ireland
Tuition fees are set separately in each part of the UK. Under the EU’s original demand, EU students in Scotland would pay the Scottish home rate of £1,820 a year, EL Gazette reported. Before 2021, EU students in Scotland paid the same as Scottish students, and many universities there, such as Glasgow and Edinburgh, attracted large numbers of Europeans as a result. How a new deal would work outside England has not been set out.
Part of a wider move towards Europe
The talks follow the UK’s decision to rejoin Erasmus+ from January 2027. The UK is not alone: Canada announced at its summit with the EU on 30 October that it will negotiate a bigger role in Erasmus+, CIC News reported.
What students should know
If you are an EU student planning to start in the UK in 2027, nothing has changed yet. You will pay international fees unless a deal is agreed and put into law. Watch for the outcome of the 20 November summit.
If you are from outside the EU, this proposal would not change your fees. If EU students do return to home fees, competition for places on some popular courses could increase.
Sources: The Guardian, 1 November 2026, as reported by The British Eye; Euronews, 8 October 2026; EL Gazette, 17 March 2026; Russell Group policy briefing, updated October 2026; Times Higher Education, 25 August 2026; CIC News, October 2026. Checked on 2 November 2026.