The UK's New International Student Levy: Will It Raise Your Tuition?
By Muntasir Minhaz • Published Aug 19, 2026 • Money & Budgeting, Canadians Studying Abroad, Canada Higher Ed News & Policy
England's universities pay a new 925 pound per year levy on international student income starting in the 2028-29 academic year, announced in the UK's 2025 Autumn Budget. You do not pay the levy directly, but universities warn fees will rise to cover part of the cost.
💵 925 pounds per international student, per year, charged to universities in England
⏱️ Starts August 2028, the 2028-29 academic year
First 220 international students per provider are exempt each year
Government projects 445 to 480 million pounds a year in revenue, reinvested into UK higher education
Sector bodies warn part of the cost lands on students through higher fees
What the levy does
The UK government announced a new levy on international student income in its 2025 Autumn Budget. From August 2028, at the start of the 2028-29 academic year, universities and colleges in England pay 925 pounds for every international student they enrol beyond an exempt threshold, according to Universities UK .
The idea first appeared in the government's May 2025 immigration white paper, Restoring Control over the Immigration System, which proposed charging universities for recruiting international students. The 2025 Autumn Budget confirmed the flat rate and the start date.
The levy targets institutions, not individual students directly. Each provider gets an allowance covering its first 220 international students a year before the charge applies, so smaller providers with modest international enrolment pay little or nothing.
Who actually pays
Universities and colleges pay the levy to the Office for Students, which collects it on the government's behalf.
The Treasury projects the levy raises around 445 million pounds in its first year, rising toward 480 million pounds by 2030-31, according to The PIE News . The government plans to reinvest the money into higher education and skills, including new maintenance grants for lower income domestic students from 2028-29.
Universities expect a net income loss once fewer international enrolments factor in: The PIE News reports a sector-wide net loss estimate between 270 and 330 million pounds a year, with the government's own impact assessment projecting 14,000 to 16,500 fewer international student enrolments once the levy takes effect.
Will it raise your tuition
The government structured the levy to fall on institutions, not directly on your tuition invoice. Universities set their own international fees, and several sector bodies expect providers to pass some of the cost through in future fee increases rather than absorb it fully.
UKCISA states the levy is not directly imposed on international students, but warns that institutions will likely pass costs on through fees and reduced investment in student support. Russell Group representative Tim Bradshaw said the levy affects universities' ability to invest in teaching and research, a factor to weigh if you plan to start a UK degree in or after the 2028-29 academic year.
If your course starts before August 2028, the levy does not apply to your fee at all. If your course starts in or after the 2028-29 academic year, check your offer holder communications and your university's published fee policy directly, since institutions decide individually how much of the levy, if any, they pass to students.