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Labour’s recent announcements on higher education and skills point to some of the most significant sector changes in years. For universities, spotting the direction of travel now and moving quickly will be key to protecting recruitment, reputation and relevance. Whilst the timelines remain unclear, it will be important for those supporting marketing teams to be ready & prepared. Cubed has analysed several of the announcements and their potential impact.

1. Maintenance Grants Return

Labour plans to reintroduce means-tested maintenance grants for “priority courses” – likely STEM, health, teaching and digital. The intention is to open access for students from low-income backgrounds, but specialist universities outside this scope risk losing out.

There’s also the question of definition: which courses qualify, and how tightly will they be tied to skills gaps? If poorly defined, we could see an overabundance of students funnelled into a small number of courses, creating oversupply in the job market and leaving non-priority disciplines under pressure.

What this means for universities:

But these grants will be part-funded by a 6% levy on international students, which could squeeze recruitment budgets. Universities will need to manage the balance between widening domestic access and staying competitive internationally.

2. The International Student Levy

Labour plans to fund its new maintenance grants through a 6% levy on international student fees. This is a significant move. Universities have already turned to international students to plug funding gaps created by the home tuition fee freeze. Increasing levys adds pressure to a revenue stream many institutions rely on.

The UK is already seen by many as a costly destination in price-sensitive markets like Nigeria, Ghana, Pakistan, and Bangladesh. This levy could make the UK less competitive compared to Europe, SEA, MENA and East Asian alternatives. Russell Group universities may weather the storm thanks to their brand strength, but for many others the risk is sharper, especially if more international students are needed just to stand still.

Implications for universities:

• Non-RG institutions may struggle most in the international marketplace.
• Competition will intensify, with lower tariffs likely used to hit targets.
• Domestic places could be squeezed if more spots go to international students.

Opportunities:

• Invest in reputation and rankings marketing to appeal to international audiences.
• Diversify markets beyond the “usual” territories.
• Explore TNE, overseas campuses, and partnerships to capture growth elsewhere.

3. A New Post-18 Skills Target

The old 50% university participation benchmark is out. Labour’s goal is for two-thirds of young people to reach higher-level skills by 25 – via university, FE, or apprenticeships.

For universities, this means:

4. FE and Technical Routes Gain Ground

Labour is committed to putting academic and technical routes on equal footing, with more funding for technical colleges, new FE-HE partnerships and flexible pathways through modular courses and foundation apprenticeships.

This could divert some traditional undergraduate demand, but it also creates space for universities to develop stronger FE links, new entry routes and offers for adult learners and career changers.

5. Lifelong Learning Entitlement (LLE)

The LLE remains on the table, opening up modular and flexible post-18 study. It may take time to fully embed, but early movers will have the best chance of capturing this high-value audience.

So – What to do?

At Education Cubed, we see these policy shifts as an opportunity to get ahead. Practical next steps include:

• Targeted recruitment campaigns for priority courses, with clear messaging on grants and career outcomes.
• The exploration of joined up campaign work with universities and their closest FE institutions – reducing cannibalisation.
• Marketing strategies to support FE partnerships and foundation routes.
• Clarity of positioning that focuses on skills, employability and pathways – university success stories.
• Digital-first campaigns for adult and lifelong learners.
• Stronger storytelling around impact, from civic engagement to teaching excellence.
• Data-driven campaign planning to stretch budgets further in a financially pressured market.

The Bottom Line

Alongside these reforms sits an uncomfortable reality: the tuition fee freeze remains, and universities face rising costs, pension pressures, and now the international levy. That means a widening financial black hole, with institutions under pressure to do more with less.

Labour has also signalled a new “compact” with HE, expecting universities to demonstrate civic impact, teaching quality, and efficiency. The sector is being asked to deliver more, while finances tighten further.

These aren’t just policy headlines, they signal long-term shifts that will shape recruitment, funding and reputation. Universities that act now, communicate clearly and align campaigns with the new priorities will be the ones that thrive.

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