Universities in England are expected to pay an annual £925 levy for every international student they enrol from August 2028 under a proposed British government policy aimed at funding financial support for disadvantaged domestic undergraduates.
The measure could affect institutions enrolling students from Nigeria, India, China and other countries, with universities potentially facing additional costs for both newly admitted and continuing international students.
The International Student Levy was first announced in the UK government’s 2025 Budget. Education Minister Josh MacAlister reaffirmed the administration’s commitment to the policy in Parliament on October 19, 2026, saying the revenue would support the country’s higher education and skills system.
Under the proposal, the charge would apply to each international student registered at an eligible higher education institution during an academic year. The government has projected that the scheme could generate £445m in 2028/29, £465m in 2029/30 and £480m in 2030/31.
MacAlister said the government had conducted consultations and published an impact assessment in 2025, with an updated analysis expected. He also argued that planned increases in domestic tuition fee caps could provide higher education institutions with about £6bn over five years, compared with a projected levy cost of less than £1bn over the same period.
The revenue is expected to help fund grants for eligible undergraduate students from households earning up to £30,000 annually. Under the proposed arrangement, students could receive up to £1,000 a year during their first two years of study, followed by £750 annually in subsequent years. Priority would be given to courses aligned with the government’s industrial strategy, including engineering and healthcare.
However, the proposal has raised concerns among higher education stakeholders, including the National Union of Students and the Russell Group, over its potential impact on university finances and the UK’s international education sector. Institutions that depend heavily on overseas tuition fees could face considerable additional financial pressure.
Although universities would be responsible for paying the levy, concerns remain that some could respond by reviewing their tuition fees, international recruitment plans or other spending. Any increase in fees would depend on individual institutional decisions; the proposed charge would not be a direct levy on international students.
The policy is also being considered amid reported changes in international student recruitment and tighter UK immigration requirements. Figures cited in reports indicate that student visa applications have declined, while Home Office statistics for the year ending June 2026 reportedly identified China, India and Nigeria as the leading nationalities among recipients of sponsored study visas, together accounting for approximately 54 per cent of visas granted to main applicants.
For Nigerian students planning to study in the UK, the levy could have indirect financial implications if universities adjust their fees or recruitment strategies in response to the new cost. However, its actual effect will depend on the final policy and how institutions choose to respond before the expected August 2028 implementation.
Source: PUNCH
