UK universities in England are expected to pay an annual £925 levy for each international student from August 2028 under a proposed government policy aimed at funding grants for disadvantaged domestic undergraduates.
The International Student Levy will apply to eligible international students enrolled during an academic year, including continuing students, potentially increasing costs for institutions that rely heavily on overseas enrolments.
The policy, first announced in the UK government’s 2025 Budget, is expected to affect universities admitting students from countries including Nigeria, India and China.
Education Minister Josh MacAlister reaffirmed the government’s position on October 19, 2026, telling Parliament that the revenue would support England’s higher education and skills system.
According to the government, the levy could generate £445 million in the 2028/2029 academic year, £465 million in 2029/2030 and £480 million in 2030/2031.
The government has also argued that planned increases in domestic tuition fee caps could generate approximately £6 billion for higher education providers over five years, compared with the levy’s projected cost to universities of less than £1 billion over the same period.
Under the proposed funding arrangement, eligible undergraduate students from households earning up to £30,000 annually would receive financial support throughout their studies.
The grants would provide up to £1,000 annually during students’ first two years, reducing to £750 per year in subsequent years. Eligibility would focus on courses aligned with the government’s industrial strategy, including engineering and healthcare.
However, the proposed levy has raised concerns among university leaders and higher education stakeholders, including the National Union of Students and the Russell Group, over its potential impact on institutional finances and international student recruitment.
Although universities, rather than students, would be responsible for paying the levy, institutions could respond to the additional costs by reviewing tuition fees, recruitment strategies or spending. Any increase in fees would depend on individual universities’ decisions.
The policy comes amid reported changes in international student recruitment and tighter UK immigration requirements for overseas students.
Figures cited in reports indicate that international student visa applications have declined, raising concerns about the financial sustainability of universities that depend significantly on overseas tuition fees.
Home Office statistics for the year ending June 2026 reportedly identified China, India and Nigeria as the three largest nationalities receiving 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 proposed levy could have indirect financial implications if universities adjust their fees or recruitment policies in response to the new charge.
Nigeria remains an important source of international students for UK institutions, making changes to university funding and immigration policies particularly relevant to prospective applicants.
However, the £925 charge is proposed as a levy on universities in England, not a direct payment required from each international student. Students should therefore avoid assuming that their tuition fees will automatically rise by £925 annually.
With implementation expected in August 2028, universities and prospective international students will be watching for further details on the final policy, its administration and any resulting changes to tuition fees.
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