Universities in England will face a new annual charge for international students from August 2028, under a government plan expected to generate £445 million (around $594 million) in its first year. The proposed levy of £925, equivalent to approximately $1,200, will apply to each overseas student above an exemption threshold of 220 enrolments per institution. Students from India, Nigeria, China, Pakistan and other countries will be covered by the policy.Although international students will not pay the levy directly, the additional expense could influence universities’ tuition fee decisions. For Indian students planning to study in the UK, the change comes as institutions contend with financial pressures, tighter immigration rules and shifts in international recruitment.
How the UK international student levy will work
The policy, first announced in the UK government’s 2025 Budget, will cover both new and existing international students enrolled at universities in England. Institutions will not pay the levy on their first 220 overseas students, but enrolments above that threshold will attract the annual charge.For example, a university enrolling 1,000 international students would pay £721,500 a year after the exemption is applied. The Office for Students will oversee implementation using enrolment data, while the government plans to adjust the charge annually in line with inflation.The projected revenue is expected to increase over the first three years.
| Financial year | Projected revenue |
| 2028–29 | £445 million |
| 2029–30 | £465 million |
| 2030–31 | £480 million |
The government intends to direct the proceeds towards England’s higher education and skills system.
Indian students among those affected by the policy
India remains one of the largest sources of international students for British universities. Home Office figures cited in the report show that the UK issued 82,523 sponsored study visas to Indian nationals in the year ending June 2026. China recorded 86,368, while Nigeria received 26,060.According to Department for Education figures, Indian students generated £5.3 billion in UK higher education export revenue in 2024. Chinese students contributed £4.9 billion and Nigerian students £1.7 billion, with international higher education students generating an estimated £23.9 billion in total export revenue that year.The levy does not directly impose a payment obligation on students. However, universities could seek to recover some of the additional expenditure through tuition fees, potentially increasing the cost of studying in the UK for overseas applicants.
Universities raise concerns over additional costs
The proposed charge has drawn criticism from university representatives concerned about international recruitment and institutional finances. In its report on the policy, Business Insider Africa highlighted concerns that the levy could add to the pressure on universities already facing weaker overseas enrolment and rising operating costs.Some institutions have announced tuition fee increases for international students. Birmingham City University raised fees for continuing international students by 2% for the 2026–2027 academic year and has planned a further 3.5% increase for 2027–2028. The University of Bath has advised overseas students who began their courses in 2026 to budget for annual tuition fee increases of up to 8%.The wider financial pressures have also affected the University of Sunderland, which is seeking to reduce its annual operating costs by £40 million amid weaker international recruitment.
Government defends the levy
The government reaffirmed its plans on October 19, 2026, when Education Minister Josh MacAlister addressed the policy in Parliament. He said consultations had been conducted and an impact assessment published in 2025, with an updated analysis expected shortly.MacAlister also argued that planned increases in domestic tuition fee caps could generate around £6 billion for higher education providers over five years, compared with a projected levy cost of less than £1 billion over the same period.Vivienne Stern, chief executive of Universities UK, questioned the government’s revenue projections in comments reported by The i Paper, arguing that international recruitment trends made the forecasts unrealistic.With implementation scheduled for August 2028, universities will need to account for the levy in their financial planning. For prospective Indian students, tuition fees and other study costs will remain important factors when comparing UK universities and preparing budgets.
