Levy scheduled for 2028
Universities in England are due to pay an annual £925 levy for each international student above a 220-student exemption from August 2028, adding a new cost for institutions that rely heavily on overseas recruitment. The measure covers both new and continuing international students, according to details reported by Business Insider Africa.
The policy was first announced in the government's 2025 Budget and was reaffirmed in Parliament on October 19, 2026. Education Minister Josh MacAlister said the proceeds would support England's higher-education and skills system. The Office for Students is expected to administer the charge using enrolment data, while the levy rate is intended to rise with inflation.
A university with 1,000 international students would have 780 chargeable enrolments after the exemption, producing an annual bill of £721,500 at the initial rate. Government projections cited in the report put total receipts at £445 million in the 2028-29 financial year, £465 million the following year and £480 million in 2030-31.
MacAlister said an impact assessment and consultation had already been published in 2025, with updated analysis expected. He contrasted the levy with planned increases in domestic tuition-fee caps, which the government estimates could provide institutions with about £6 billion over five years. The levy is projected to cost universities less than £1 billion over the same period.
Universities face recruitment pressure
Students will not be billed directly by the government, but universities could seek to recover the expense through higher fees. The change arrives as institutions contend with weaker international recruitment and tighter visa-sponsorship requirements, increasing concern about the finances of universities with substantial overseas cohorts.
The largest effects are likely to fall on institutions recruiting extensively from countries including China, India, Nigeria, Pakistan and Bangladesh. Home Office figures cited by the report show 86,368 sponsored study visas for Chinese nationals in the year to June 2026, followed by 82,523 for India and 26,060 for Nigeria. Pakistan accounted for 19,600 adult student visas and Bangladesh about 8,800.
Universities UK chief executive Vivienne Stern criticised the measure and questioned whether the revenue forecasts remained realistic as recruitment trends weakened. Her objection highlights the uncertainty built into a per-student charge: revenue falls if fewer international students enrol, but institutions already facing that decline would still absorb a new cost on those who do attend.
The levy applies to English universities rather than the entire United Kingdom. Its final financial impact will depend on enrolment patterns, inflation-linked rate changes and whether institutions alter international fees or recruitment plans before implementation.
