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Hiking the cost of studying and working in the UK will make international recruitment even harder for the country’s universities, it has been warned.

Pay rises of up to 7 per cent for millions of public sector workers will be funded by a 20 per cent increase in the costs of study visas – currently £490 for those inside the UK, or £363 for applicants outside the country.

John Glen, the chief secretary to the Treasury, also said that costs for students inside and outside the UK would be “equalised”, suggesting that all applicants will pay £588 in future.

The price of work visas, which cost between £625 and £1,423, will climb by 15 per cent. Meanwhile, the annual healthcare surcharge – which has to be paid on top of visa costs – will rocket from £624 to £1,035 for workers, and from £470 to £776 for students.

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