UK universities face £925 annual levy for each international student from 2028

Universities in England are set to face a £925 annual charge for every eligible international student from August 2028 under a proposed UK government policy designed to help disadvantaged domestic undergraduates meet the cost of higher education.

The International Student Levy, first announced in the government’s 2025 Budget, will apply to eligible overseas students enrolled in an academic year, including those continuing their studies. The measure could add to financial pressures on universities that depend heavily on international tuition fees to support their operations.

Although universities will be responsible for paying the levy, concerns are growing over whether institutions could eventually pass on some of the additional costs through higher tuition fees or changes to their international recruitment strategies.

Education Minister Josh MacAlister recently reaffirmed the government’s position in Parliament saying the revenue would support England’s higher education and skills system.

The government projects that the levy will raise £445 million in the 2028/2029 academic year, increasing to £465 million in 2029/2030 and £480 million in 2030/2031.

Grants for disadvantaged domestic students

The proposed levy is intended to help fund financial support for undergraduate students from households earning up to £30,000 a year.

Under the planned arrangement, eligible students would receive grants of up to £1,000 annually in their first two years of study, followed by £750 a year in subsequent years. Support would prioritise courses aligned with the government’s industrial strategy, including engineering and healthcare.

The government has also pointed to planned increases in domestic tuition fee caps, arguing that these could generate around £6 billion for higher education providers over five years. By comparison, the projected cost of the international student levy to universities is expected to remain below £1 billion over the same period.

However, the proposal has prompted concerns among university leaders and higher education stakeholders, including the National Union of Students and the Russell Group, about its potential consequences for institutional finances and the UK’s appeal as a destination for international students.

Overseas students could face indirect costs

While the £925 charge will be paid by universities rather than individual students, its wider financial consequences remain uncertain.

Institutions could absorb the additional expense, reduce spending elsewhere or revise their recruitment and pricing strategies. Any increase in tuition fees would depend on decisions made by individual universities; the levy does not automatically require international students to pay an additional £925.

The policy is being proposed at a time when changes in international student recruitment and tighter UK immigration requirements have added to concerns about the financial sustainability of universities that rely on overseas enrolments.

Reported declines in student visa applications have intensified scrutiny of the sector’s dependence on international recruitment.

Home Office figures for the year ending June 2026 reportedly identified China, India and Nigeria as the three largest nationalities receiving sponsored study visas for main applicants. Together, they accounted for approximately 54% of visas granted to this group.

What it means for Nigerian students

For Nigerian students considering a UK education, the proposed levy adds another factor to monitor when planning tuition fees and living expenses.

Nigeria remains an important source of international students for British universities. Any changes to university pricing or recruitment policies could therefore affect prospective applicants, particularly those already working within tight financial limits.

However, students should not interpret the levy as an automatic £925 annual increase in their tuition fees. The immediate financial obligation rests with eligible universities in England, and the extent to which institutions might adjust their fees remains uncertain.

With implementation scheduled for August 2028, universities and prospective international students will be watching for further details on the levy’s final design, administration and potential impact on tuition costs and recruitment.

For now, the central question is whether universities can absorb the new charge without making UK higher education less affordable or less attractive to students from overseas.