New visa charge 'will threaten £10bn income' for universities

Ministers are being urged to abandon plans to double the fee for visa extensions for overseas students - which would jeopardise up to £10.4bn of income for overstretched university budgets.

Ministers are being urged to abandon plans to double the fee for visa extensions for overseas students - which would jeopardise up to £10.4bn of income for overstretched university budgets.

The Home Office is expected to announce soon that the fee for applying for visa extensions will increase from £250 to nearly £500. Sources say the decision is "imminent" and likely to be "at the top end" of a consultation exercise recommendation that it should be increased to around £500.

Barry Sheerman, Labour chairman of the Commons Education Select Committee, is writing to the Home Secretary, Charles Clarke, urging him to abandon the plan.

Mr Sheerman said students would be put off continuing their studies in the UK. Up until 2003, visa extension applications to study for post-graduate courses were free. He is also worried that the growing number of overseas students - particularly from China - is leading to delays in processing their applications.

He said most universities had cases where students were unable to take up places because of delays in handling visa applications. "We should not be penalising students who come here to study," he said.

Oxford University has announced that it is to cut the number of British students it recruits and expand its overseas intake at a time when it is losing £20m a year.

Universities UK, the bodywhich represents university vice-chancellors, estimates that income from overseas students is now £10.4bn a year.