UK's New International Student Levy Could Push Up Tuition Fees From 2028

International students in the UK could face higher tuition fees from August 2028 under a government plan to introduce a new levy on universities. 

The proposal, which is awaiting parliamentary approval, would require institutions to pay £925 each year for every overseas student above a set threshold. The levy will be collected by the Office for Students and is expected to increase the cost of studying for many international students. Universities are likely to pass the additional charge on through higher tuition fees. 

The government believes demand for UK higher education will remain strong despite the increase, arguing that small rises in fees are unlikely to reduce international enrolment significantly. Ministers also expect the policy to support the value of UK education exports. The proposal was first outlined in the Immigration White Paper published in May 2025 and was confirmed by the Secretary of State for Education in September that year.

Under the scheme, universities will not pay the levy for their first 220 international students. The £925 annual charge will apply only to students enrolled above that number. The allowance is intended to reduce the financial impact on smaller institutions while requiring larger universities to make a greater contribution.

The proposal comes at a time when international students already face substantial costs. According to the British Council, undergraduate tuition fees currently range from £11,400 to £38,000 a year, depending on the course and institution. 

Humanities and social science degrees are generally less expensive, while laboratory-based and clinical programmes usually cost more. Postgraduate courses typically range from £9,000 to £30,000. Many postgraduate programmes last one year, allowing students to reduce both tuition and living costs.

Living expenses remain a significant part of the overall cost of studying in the UK. Students in London usually spend between £1,300 and £1,400 a month, while those elsewhere in the country typically spend between £900 and £1,300. Visa applicants must also show that they have enough money to cover tuition fees, living costs and the expenses of any dependants.

The proposed levy would represent a significant change to the UK's approach to international higher education. It would increase costs for many students and could affect how universities recruit overseas applicants, particularly for research-intensive courses with longer periods of study. Higher tuition fees and existing financial requirements may also influence how prospective students assess the UK as a study destination.

Parliament is expected to debate the proposal before a final decision is made. If approved, the levy will take effect in August 2028 and will change the funding arrangements for universities enrolling international students.