Britain will hand EU £570M to rejoin Erasmus student exchange scheme

Keir Starmer faced outrage today after handing the EU £570million to rejoin the Erasmus student exchange programme - and opening the door to a wave of arrivals from Turkey and North Africa.

Ministers have voiced jubilation at the 'fair and balanced' deal despite the eye-watering cost only covering 2027-29.

On an annual basis the sum is double what Boris Johnson rejected as too expensive in 2021. It is equivalent to roughly a fifth of the entire EU funding envelope for Erasmus+, although the government insists a chunk of the money will go on travel for British youngsters.

Worryingly, Brussels is already signalling that a 30 per cent 'discount' will not be repeated, meaning the cost could hit £810million a year in future. 

Students from Turkey will be eligible to come to the UK in 2027, as the country is an 'associate' member of the scheme. And Brussels has declared it wants to expand the arrangements to cover countries such as Egypt, Algeria and Morocco.

When the UK was in the scheme previously, far more students came here than went to Europe. Government aides played down the risk of people overstaying visas once they had made it to Britain for courses, which will range from two to 12 months. 

However, Tories accused the PM of 'exposing Britain to all sorts of risks' as he tries to 'suck up' to the EU.  

The dramatic deal will fuel alarm that Sir Keir is unwinding Brexit, after blaming cutting ties for the economy's poor performance. It is regarded as a first step towards a so-called 'youth free movement' deal being demanded by the EU. 

Before the Budget, Rachel Reeves pushed for an 'ambitious' youth migration deal with the EU.

The Chancellor said an exchange scheme for young workers would be 'good for the economy, good for growth and good for business'.

Today, she visited Grangemouth in Falkirk, Scotland, to announce a £150million support package to protect 500 jobs at the site.

Senior Labour figures have also been hinting at customs union membership, although so far that has been dismissed by Downing Street. 

Intensive negotiations have been happening on 'mutually agreed financial terms' for taking part in the scheme, which the UK left under Boris Johnson.

The UK is thought to have pushed for a 50 per cent discount on membership fees, which are calculated on the basis of a country's GDP.

However, Sir Keir caved after the EU only offered a 30 per cent reduction of fees in the first year. 

Extraordinarily, the government has been boasting about achieving this 'discount'. 

The arrangement will get back up and running in time for the 2027-28 academic year. 

The government said today: 'The UK contribution for 2027 will be approximately £570million. 

'This covers the 2027-28 academic year. Any participation in Erasmus+ into the next Multiannual Financial Framework will need to be agreed in the future and be based on a fair and balanced contribution.' 

During a visit to a London college, Cabinet Office minister Nick Thomas-Symonds said some of the money would 'come back' in funding for UK students to go abroad.

'I think it's really important that there is a fair balance. That's what I've been agreeing with the European Union,' he said.

'We've agreed that there will be a 30 per cent discount for the UK's participation. And that is of course money that is then as it were, coming back.

'It's making sure that there are students and young people, indeed people of other ages across the UK, who are benefiting from it.

'What I've also said is that after 10 months, we will have a review and look properly at the data, at the number that you're asking me about.

'We'll be able to see exactly what that number is, and be able to see in numbers what that fair balance is, and that is, of course, hugely important.

'I've always said as the lead negotiator that I would only sign up to programmes that offer value for money and are in the national interest. I think this squarely falls into that category.

'But I have to say too, this is about a lot more than money as well. This is about some really exciting opportunities for people that I'm really looking forward to promoting.'

Mr Thomas-Symonds said the UK could have 'expected' to pay £810million to join the scheme. EU sources have already been briefing that there will be no discount if the arrangements are continued in 2028-29.

Asked whether Britain had demanded a larger discount, a Downing Street spokesman said: 'We, as with every area of international engagement, pushed for the best deal for the British people.'

The spokesman said details on the fate of the Turing scheme will be shared 'in due course'.

He said: 'The Turing scheme is focused on international placements for students and schools, colleges and universities to study and work anywhere in the world.

'Erasmus has a much broader scope of activity. It includes staff, it includes youth and sports and supports a wide range of institutional partnerships and policy reform. So you'll have a wider range of opportunities through our association to Erasmus.'

But shadow foreign secretary Priti Patel said: 'Labour continue to betray Brexit. They've constantly undermined the 2016 Referendum result and are obsessed with dragging Britain back under the control of Brussels. 

'Now they're throwing away billions of pounds of hard-pressed British taxpayers' money rejoining Erasmus instead of taking advantage of our Brexit freedoms to support trade with the rest of the world, investment and economic growth.' 

She added: 'Labour are exposing Britain to all sorts on risks in their feeble attempt to suck up to the EU.' 

Shadow Cabinet minister Alex Burghart said: 'The UK re-joining Erasmus was a big Brussels demand, and Keir Starmer has seemingly caved in to the EU without getting anything in return for our £500million – just like he did over our fishing rights.

'The Erasmus scheme is drastically more expensive than the Turing Scheme introduced after Brexit, which benefitted more British people. Turing was a global programme rather than a scheme based on a blank cheque for Brussels.

'Rejoining Erasmus, reopening costly energy integration, and edging back into EU regulatory frameworks looks less like pragmatism and more like pro-EU ideology. 

'The British people voted in 2016 to take back control, and Labour's approach shows a worrying disregard for that democratic decision.'

Previously far more students came to the UK than went to the EU, meaning the net cost was higher than the contribution. But supporters insist there is a wider benefit to the economy. 

Under Mr Johnson, the UK pulled out of Erasmus, launching the Turing scheme as a domestic alternative. That only funded UK students to go abroad, costing £105million in 2024-25 for 43,200 placements.

Mr Johnson said in 2021 that remaining in the EU scheme would have meant a net cost of £2billion over seven years.

That gave a roughly annual cost of £285million - half what the government seems to have agreed now, although government sources insisted the scope is much wider. 

In 2020, the last year in which the UK participated in Erasmus, the scheme received £126million of EU funding for 55,700 people to take part in projects overall.

The UK sent 9,900 students and trainees to other countries in that academic year while 16,100 came here. 

The EU set a funding envelope of around £3.09billion annually for the scheme between 2021 and 2027. Britain's contribution in 2027-28 would amount to nearly a fifth of that figure.

The EU commission has declared that it wants to extend Erasmus+ to a host of Middle East and North African states as part of a wider partnership push.

The plans have not been finalised, and it is not yet clear whether they could be included in the arrangements later this decade. 

Turkey is a long-standing associate of the scheme, with around 52,000 students having used it last year. 

Mr Thomas-Symonds held talks with the European Commission's Maros Sefcovic in Brussels last week with the deadline looming for the UK to join in time for 2027.

More than 100,000 Britons could benefit from the scheme in the first year alone, according to the Government.

As well as university-based study exchanges, Erasmus+ will allow further education students and apprentices to take up work placements in European firms.

There will be exchange opportunities for adult learners, school groups and sports coaches – and job shadowing and training abroad will be available to education staff.

Ministers aim to maximise take-up, particularly among disadvantaged groups, by working with institutions and young people.

A UK national agency will be set up to run the programme.

The deal has been welcomed by the UK's universities.

Tim Bradshaw, chief executive of the Russell Group, said: 'We're delighted at the UK's association to Erasmus+.

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'With an even greater scope than previous programmes, Erasmus+ opens up fantastic opportunities for students, adult learners and young people to all benefit from new experiences and learning.

'It will also renew the huge contributions that EU students and staff make to life on our university campuses.'

Liberal Democrat universities spokesman Ian Sollom said: 'While this is a welcome breakthrough, it must be viewed as a crucial first step on a clear roadmap to a closer relationship with Europe. 

'Starting with negotiating a bespoke UK-EU customs union, and committing to a youth mobility scheme for benefit of the next generation.'