UK varsities to face £925 levy per international student from August 2028

The United Kingdom is planning to introduce an annual £925 levy on universities in England for each international student enrolled, with the measure expected to take effect in August 2028.

The proposed levy, which would affect students from countries including Nigeria, India and China, is intended to help fund maintenance grants for disadvantaged domestic students pursuing undergraduate degrees.

The levy according to UK Home Office statistics cited by PUNCH Online on Wednesday, under the proposed arrangement, the charge would apply to international students registered on eligible higher education courses during an academic year. Universities could also be required to pay the levy for continuing international students, meaning the financial obligation would not be limited to newly admitted students.

First announced in the government’s 2025 Budget, the International Student Levy has faced opposition from university leaders concerned about rising operating costs and declining overseas enrolment.

However, the government reaffirmed its plans on October 19, 2026, when Education Minister Josh MacAlister told Parliament that the revenue would support England’s higher education and skills system.

Responding to a parliamentary question about the policy’s economic justification, MacAlister said the government had already conducted consultations and published an impact assessment in 2025, with an updated analysis expected shortly.

He also maintained that planned increases in domestic tuition fee caps could generate around £6 billion for higher education providers over five years, compared with the levy’s projected cost to universities of less than £1 billion over the same period.

The provision states that the levy would be charged for an academic year for each international student registered at a higher education provider during any period of that year, at a rate of £925 per student.

The government has projected that the scheme could generate £445 million in 2028/29, £465 million in 2029/30 and £480 million in 2030/31.

However, the projected revenue depends partly on assumptions about international student recruitment and enrolment levels.

The proposed levy has reportedly raised concerns among higher education stakeholders, including the National Union of Students (NUS) and the Russell Group, over its potential impact on university finances and the UK’s international education sector.

Universities that enrol large numbers of overseas students could face substantial additional costs under the arrangement. While the levy would formally be paid by institutions rather than students, concerns remain that some universities could respond by reviewing tuition fees, recruitment strategies or other spending.

International student fees are an important source of income for many UK universities, helping institutions support teaching, research and other academic activities.

The levy comes at a time when universities are already facing changes in international recruitment and tighter immigration requirements for overseas students.

Under the proposed funding arrangement, eligible undergraduate students from households earning up to £30,000 annually would receive financial support throughout their studies.

The grants would provide up to £1,000 annually during students’ first two years, before reducing to £750 per year for subsequent years.

Eligibility would focus on courses aligned with the government’s industrial strategy, including engineering and healthcare.

The government intends for the levy to help disadvantaged domestic students access and complete higher education, particularly in fields considered important to the country’s economic development.

The proposed levy comes amid a reported decline in international student visa applications to the UK.

Figures cited in reports indicate that applications fell by 22 per cent over the past year and by more than 30 per cent compared with three years ago.

Home Office statistics for the year ending June 2026 reportedly showed that China, India and Nigeria were the three largest nationalities receiving sponsored study visas, accounting for approximately 54 per cent of visas granted to main applicants.

The trend has raised questions about the future of international student recruitment, particularly for universities that depend heavily on overseas enrolments.

The proposed levy could have implications for Nigerian students planning to study in the UK, particularly if universities adjust their recruitment strategies or tuition fees to accommodate the additional costs.

Nigeria remains one of the major sources of international students entering the UK through the sponsored study visa route. Changes to university funding arrangements and immigration requirements could therefore influence the options available to prospective Nigerian applicants.

However, the £925 levy would be payable by universities in England, not directly by international students. Whether institutions pass on any of the additional costs through higher tuition fees would depend on their individual decisions.

With implementation expected in August 2028, prospective students and universities will be watching for further details on the final arrangements and how the levy will be administered.

Under the proposed arrangement, the charge would apply to international students registered on eligible higher education courses during an academic year. Universities could also be required to pay the levy for continuing international students, meaning the financial obligation would not be limited to newly admitted students.

First announced in the government’s 2025 Budget, the International Student Levy has faced opposition from university leaders concerned about rising operating costs and declining overseas enrolment.

However, the government reaffirmed its plans on October 19, 2026, when Education Minister Josh MacAlister told Parliament that the revenue would support England’s higher education and skills system.

Responding to a parliamentary question about the policy’s economic justification, MacAlister said the government had already conducted consultations and published an impact assessment in 2025, with an updated analysis expected shortly.

He also maintained that planned increases in domestic tuition fee caps could generate around £6 billion for higher education providers over five years, compared with the levy’s projected cost to universities of less than £1 billion over the same period.

The provision states that the levy would be charged for an academic year for each international student registered at a higher education provider during any period of that year, at a rate of £925 per student.

The government has projected that the scheme could generate £445 million in 2028/29, £465 million in 2029/30 and £480 million in 2030/31.

However, the projected revenue depends partly on assumptions about international student recruitment and enrolment levels.

The proposed levy has reportedly raised concerns among higher education stakeholders, including the National Union of Students (NUS) and the Russell Group, over its potential impact on university finances and the UK’s international education sector.

Universities that enrol large numbers of overseas students could face substantial additional costs under the arrangement. While the levy would formally be paid by institutions rather than students, concerns remain that some universities could respond by reviewing tuition fees, recruitment strategies or other spending.

International student fees are an important source of income for many UK universities, helping institutions support teaching, research and other academic activities.

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The levy comes at a time when universities are already facing changes in international recruitment and tighter immigration requirements for overseas students.

Under the proposed funding arrangement, eligible undergraduate students from households earning up to £30,000 annually would receive financial support throughout their studies.

The grants would provide up to £1,000 annually during students’ first two years, before reducing to £750 per year for subsequent years.

Eligibility would focus on courses aligned with the government’s industrial strategy, including engineering and healthcare.

The government intends for the levy to help disadvantaged domestic students access and complete higher education, particularly in fields considered important to the country’s economic development.

The proposed levy comes amid a reported decline in international student visa applications to the UK.

Figures cited in reports indicate that applications fell by 22 per cent over the past year and by more than 30 per cent compared with three years ago.

Home Office statistics for the year ending June 2026 reportedly showed that China, India and Nigeria were the three largest nationalities receiving sponsored study visas, accounting for approximately 54 per cent of visas granted to main applicants.

The trend has raised questions about the future of international student recruitment, particularly for universities that depend heavily on overseas enrolments.

The proposed levy could have implications for Nigerian students planning to study in the UK, particularly if universities adjust their recruitment strategies or tuition fees to accommodate the additional costs.

Nigeria remains one of the major sources of international students entering the UK through the sponsored study visa route. Changes to university funding arrangements and immigration requirements could therefore influence the options available to prospective Nigerian applicants.

However, the £925 levy would be payable by universities in England, not directly by international students. Whether institutions pass on any of the additional costs through higher tuition fees would depend on their individual decisions.

With implementation expected in August 2028, prospective students and universities will be watching for further details on the final arrangements and how the levy will be administered. Wednesday that under the proposed arrangement, the charge would apply to international students registered on eligible higher education courses during an academic year. Universities could also be required to pay the levy for continuing international students, meaning the financial obligation would not be limited to newly admitted students.

First announced in the government’s 2025 Budget, the International Student Levy has faced opposition from university leaders concerned about rising operating costs and declining overseas enrolment.

However, the government reaffirmed its plans on October 19, 2026, when Education Minister Josh MacAlister told Parliament that the revenue would support England’s higher education and skills system.

Responding to a parliamentary question about the policy’s economic justification, MacAlister said the government had already conducted consultations and published an impact assessment in 2025, with an updated analysis expected shortly.

He also maintained that planned increases in domestic tuition fee caps could generate around £6 billion for higher education providers over five years, compared with the levy’s projected cost to universities of less than £1 billion over the same period.

The provision states that the levy would be charged for an academic year for each international student registered at a higher education provider during any period of that year, at a rate of £925 per student.

The government has projected that the scheme could generate £445 million in 2028/29, £465 million in 2029/30 and £480 million in 2030/31.

However, the projected revenue depends partly on assumptions about international student recruitment and enrolment levels.

The proposed levy has reportedly raised concerns among higher education stakeholders, including the National Union of Students (NUS) and the Russell Group, over its potential impact on university finances and the UK’s international education sector.

Universities that enrol large numbers of overseas students could face substantial additional costs under the arrangement. While the levy would formally be paid by institutions rather than students, concerns remain that some universities could respond by reviewing tuition fees, recruitment strategies or other spending.

International student fees are an important source of income for many UK universities, helping institutions support teaching, research and other academic activities.

The levy comes at a time when universities are already facing changes in international recruitment and tighter immigration requirements for overseas students.

Under the proposed funding arrangement, eligible undergraduate students from households earning up to £30,000 annually would receive financial support throughout their studies.

The grants would provide up to £1,000 annually during students’ first two years, before reducing to £750 per year for subsequent years.

Eligibility would focus on courses aligned with the government’s industrial strategy, including engineering and healthcare.

The government intends for the levy to help disadvantaged domestic students access and complete higher education, particularly in fields considered important to the country’s economic development.

The proposed levy comes amid a reported decline in international student visa applications to the UK.

Figures cited in reports indicate that applications fell by 22 per cent over the past year and by more than 30 per cent compared with three years ago.

Home Office statistics for the year ending June 2026 reportedly showed that China, India and Nigeria were the three largest nationalities receiving sponsored study visas, accounting for approximately 54 per cent of visas granted to main applicants.

The trend has raised questions about the future of international student recruitment, particularly for universities that depend heavily on overseas enrolments.

The proposed levy could have implications for Nigerian students planning to study in the UK, particularly if universities adjust their recruitment strategies or tuition fees to accommodate the additional costs.

Nigeria remains one of the major sources of international students entering the UK through the sponsored study visa route. Changes to university funding arrangements and immigration requirements could therefore influence the options available to prospective Nigerian applicants.

However, the £925 levy would be payable by universities in England, not directly by international students. Whether institutions pass on any of the additional costs through higher tuition fees would depend on their individual decisions.

With implementation expected in August 2028, prospective students and universities will be watching for further details on the final arrangements and how the levy will be administered.