The UK-EU Youth Experience Scheme

It is likely that the EU demand for EU students being eligible for home fees in the UK is borne from both the uncapped nature of international tuition fees in the UK, and the significantly higher tuition fees in the UK compared to EU member states, where higher education is subsidised. In France for example, domestic undergraduate tuition fees at a public university are around €170/year and €2,770/year for international students (tuition is however comparable for some of France’s grand écoles, which can charge around £9,000). In Germany, tuition is free for both domestic and international undergraduates with the exception of the Baden-Wuttenberg area.

Furthermore, on 20 October 2025 the UK Government announced its “Post-16 Education and Skills White Paper”, confirming that university tuition fees in England will now rise annually in line with inflation, meaning the current cap of £9,535 will increase each year, from 2026 onwards. The policy is intended to provide long-term certainty over future funding for the higher education sector, and the UK Government also intends to “legislate when parliamentary time allows to increase tuition fee caps automatically for future academic years”.

The proposed increase in tuition fees for England does not affect fees in Scotland and Northern Ireland, where fees are already significantly lower than in England and Wales. The Welsh Government is yet to make an announcement on tuition in Wales. This poses an additional complication in the interpretation of the EU’s demand for ‘equal treatment to nationals’. Taken at face value, and based on 2025 tuition fees, this could result in future EU undergraduate students being charged the lower £1,820 home fees for Scottish citizens in Scottish universities43 and £4,855 in universities in Northern Ireland, with English and Welsh citizens paying the higher ‘Rest of the UK’ fees, currently capped at £9,535/year, rising in line with inflation in future.

In its April 2025 policy position paper, Youth Mobility Agreement with the EU, the Scottish Government notes that previous EU proposals in this area have addressed the fee-paying status of EU students who might come to the UK under such an agreement. The paper further emphasises that any approach must carefully consider Scotland’s distinct funding arrangements, the perspectives of higher education institutions, and the need to avoid creating a “funding gap” that could negatively impact Scottish universities”.

In 2021, when the Trade and Cooperation Agreement (TCA) came into effect, applications from EU students to UK universities dropped by 40%. Although the TCA’s implementation coincided with the lockdowns and travel restrictions resulting from the Covid-19 pandemic, in 2024, the number of EU students on full-time undergraduate courses had fallen by 68% compared to 2020 - its “lowest level since 1994”. Despite the compounding effects of Covid-19 pandemic, it is clear that higher tuition fees caused the number of EU students in the UK to crash, and they have so far not recovered.

In September 2024, the Chief Executive of Universities UK, Vivienne Stern called on the new UK Government to seek to increase the flow of EU students to the UK, saying: “We really, really regret the fact that we have lost a flow of really good European students into the UK”. She also recognised the “toxic” domestic politics surrounding the prospect of EU citizens returning at scale to education in the UK.

When it comes to the type of degree EU students are obtaining in the UK, EU students are outliers compared to non-EU international students. For the 2023/2024 academic year, 63% of EU students at UK universities were in first-time undergraduate courses, compared to only 35% of non-EU international students who were doing the same.

It is therefore possible that a reversion to charging EU students UK home fees, as was the case before the TCA was implemented, could help the number of applications from EU students in the UK to recover. However, before the UK Government announced that tuition fees in England would rise in line with inflation from 2026 onwards, universities were concerned that charging EU students domestic tuition fees could accelerate the financial crisis of UK universities or result in EU students “displacing British students”.

“The main thing to be aware of here is just that we're in a very precarious situation in terms of Higher Education funding at the moment. [...] I think expanding home fee status to include European students would really greatly exacerbate this problem.”
- Charley Robinson, Head of Global Mobility Policy at Universities UK

The first consideration for the UK Government is whether to set a new precedent by allowing EU citizens to pay home fees, and how such a precedent may impact both on all other current international students in the UK and ongoing and future trade negotiations.

“A very real question for us is about parity with international students and on what basis we could grant preferential access and how that would go down with other international students, who are really the lifeblood of the existing Higher Education funding system.”
- Charley Robinson, Head of Global Mobility Policy at Universities UK

The UK Government currently has open trade negotiations with the US, Gulf Cooperation Council, Switzerland, Turkey, South Korea, and China. The UK Government trade strategy further outlines the UK Government’s ambition to negotiate Digital Trade Agreements with Brazil, Thailand, Kenya and Malaysia.

Continuing to charge EU students international fees, as is the case now and the case with students from all other countries across the globe, will not set new precedents and not add to the financial woes of UK universities. At the same time however, it would likely continue to drive the downward trend in the number of EU students coming to the UK to obtain a degree, and further reduce the UK’s soft power and standing on the world stage.

“There is a big soft power dimension to this for us, which is if there are people who are the future business leaders of multinational corporations overseas who have come and had a positive experience of the UK, there is a soft power element to that.”
- Matthew Percival, Director, Future of Work and Skills, Confederation of British Industry

A UK-EU YES which agrees to allow EU students to be charged home or reduced international fees would bring the welcome benefit of reversing the downward trend in the number of EU students choosing to come to study in the UK.

The UK Government will have to balance these competing priorities, ensuring that any YES agreement supports youth mobility and cultural exchange without undermining the financial resilience of UK universities or compromising the UK’s broader trade policy objectives.

Both the UK’s existing Youth Mobility Schemes, and EU member state Working Holiday Visa schemes include a ‘once in lifetime’ limitation, meaning that participants can only use this visa route once.

Tuition fees for EU students remain a sensitive element of Youth Experience Scheme negotiations. Continuing to charge EU students international fees would avoid setting a new precedent and keep the UK-EU YES scheme in line with UK Government policy for students from the rest of the world. Maintaining international fees is also unlikely to impact on the financial situation of UK Universities, many of which rely on this income to sustain teaching and research.

The UK Government should, however, engage closely with higher education providers, particularly universities facing financial pressure, to explore the implications of allowing EU students to pay ‘home fees’ or reduced international fees. In the event that home fees are introduced for EU students, they should be set at the highest level applied in England and Wales, to prevent EU students from taking advantage of lower tuition in Scotland or Northern Ireland. This ensures consistency and fairness across the UK’s higher education system.

The UK Government should conduct a comprehensive impact assessment to evaluate the financial and operational consequences of charging EU students home fees or reduced international fees, ensuring that any policy decisions are informed by the potential effects on universities and other education providers across the UK.

This level of financial commitment risks making the scheme prohibitively expensive for many young people, particularly those from lower income backgrounds.

If agreed, the combined burden of a £319 visa fee, annual £776 health surcharge and a £2,530 savings requirement may deter applicants and reduce participation. The Scottish Government reiterates this position in its policy paper, stating that “any fees and charges should be proportionate and reflect the actual costs associated with the immigration route”.

“I think on the financial side, there's a cost attached to the visa. I think the current ones are about £331 for the visa application fee, and then there's the immigration health survey charge at, I think, £776. That's not an insubstantial upfront visa cost that students would have to navigate.”
- Charley Robinson, Head of Global Mobility Policy at Universities UK

While these measures are designed to ensure fiscal neutrality and prevent additional pressure on public services, they may unintentionally reduce the inclusivity and accessibility of the programme. Coupled with the “no recourse to public funds” condition and the IHS, the scheme may appear less attractive to those without substantial financial means.

As negotiations progress, careful consideration should be given to balancing financial disincentives with accessibility. Ensuring that the scheme remains equitable, affordable, and reflective of its broader cultural and economic objectives will be essential to its long-term success.

For the UK-EU Youth Experience Scheme to succeed, it must be genuinely accessible to young people across the UK and Europe. While the scheme’s overall participation will be managed through a strict cap on numbers, financial barriers remain one of the most significant hurdles for applicants. Young people from modest backgrounds, eager to study or work abroad, should not be deterred by fees or overly restrictive savings requirements.

In evidence given to the UK Trade and Business Commission, stakeholders repeatedly emphasised the importance of making youth mobility schemes financially accessible. To achieve this, the UK Government should seek to minimise the scheme’s financial requirements, while overall participation numbers should be controlled through the agreed cap in numbers.

Application fees, for example, should be reduced to as close to a nominal level as possible, signalling that the UK Government prioritises participation.

Health coverage should also be simplified. The UK Government should manage access to health services through the European Health Insurance Card (EHIC) for entrants to the UK, removing the need for the standard health surcharge. Conversely, UK citizens participating in the scheme in EU member states should be able to access the host country’s health services through the UK Global Health Insurance Card. This approach ensures simplicity for participants on both sides of the Channel.

Savings and proof of income requirements are likely to be the main barrier to young UK citizens from modest backgrounds seeking to participate in the UK-EU Youth Experience Scheme. Evidence submitted to the UK Trade and Business Commission highlighted that young people from less affluent backgrounds might be deterred if the scheme demanded high levels of savings upfront

To address this, the UK Government should explore the possibility of setting up a scheme for young UK applicants who are unable to meet any agreed savings requirements.

Keeping costs low, simplifying access to healthcare, and offering targeted support would make the scheme more inclusive, maximise participation.