Unfortunately, it's not crap, though it is a little strangely expressed. The person doing a second degree of the same level (in this case, a bachelor's degree) or a lower level will not be counted as an overseas (ie, non-EU) student, but, like an overseas student, the person will have to pay full-cost fees. The government decided fairly recently (a year or two ago?) that the taxpayer should not subsidise people who decide to do another degree at the same or lower level. I think this current academic year may be the first year of this policy being implemented.
It is, of course, very easy to understand the government's motive, whether you agree with the policy or not. People lucky enough to go into higher education (appox 45% of young people now, I believe) get their big dollop of subsidy, which amounts to about two thirds of the full cost, I think, but having had it, they can't in general now come back for a second helping. The government wants the money spent on other people.