UK to charge universities £925 annually for international students from 2028

Universities in England will be required to pay an annual levy of £925 for each international student above an exemption threshold from August 2028, under a government policy expected to affect institutions enrolling students from Nigeria, India, China, Pakistan and Bangladesh.

The policy, first announced in the United Kingdom government’s 2025 budget, was reaffirmed by Education Minister Josh MacAlister, who said the revenue generated would support England’s higher education and skills system.

According to the Department for Education, the levy will apply to both new and existing international students, with universities exempted from paying the charge on their first 220 overseas enrolments.

The policy introduces an additional cost for institutions that rely on international student recruitment, although the government has projected that the revenue will contribute to funding priorities across the higher education sector.

MacAlister said the government had conducted consultations and published an impact assessment in 2025, with an updated analysis expected shortly.

The planned introduction comes as international students remain an important source of revenue for British higher education institutions and the wider UK economy, with Nigerian students among the significant contributors to the country’s education export earnings.

Universities to Pay Annual Levy Above Exemption Threshold

Under the proposed arrangement, universities in England will pay £925 annually for each international student beyond the first 220 overseas enrolments.

The Office for Students will oversee the implementation of the policy, using enrolment data to determine the applicable charges.

Government projections indicate that the levy will generate £445 million in revenue during the 2028-2029 financial year, equivalent to approximately $594 million.

The amount is projected to rise to £480 million, or about $641 million, by 2030-2031.

The Department for Education said the levy would apply to both newly admitted and continuing international students, meaning institutions would need to account for the charge across their overseas student populations.

The government has presented the measure as a way to generate additional funding for England’s higher education and skills system.

However, the financial implications for individual universities will depend on their international enrolment figures and the number of students covered by the exemption threshold.

Institutions enrolling substantial numbers of overseas students could face higher total annual charges than those with smaller international student populations.

The available policy details do not specify how individual universities will respond to the levy, including whether they will absorb the cost, adjust tuition fees or change their international recruitment strategies.

Government Cites Domestic Tuition Fee Funding

MacAlister said the levy should be considered alongside planned increases in domestic tuition fee caps, which the government estimates could generate approximately £6 billion for higher education providers over five years.

He contrasted the projected funding from tuition fee increases with the expected cost of the international student levy, which he said would amount to less than £1 billion.

The comparison forms part of the government’s explanation of how the levy fits into its broader approach to supporting higher education institutions and skills development.

MacAlister also noted that consultations had taken place and an impact assessment was published in 2025. An updated analysis is expected to provide further information about the policy’s potential effects.

The introduction of the levy could prompt universities to reassess their financial planning, particularly institutions that depend heavily on international tuition fees to support their operations.

Nevertheless, the financial consequences are likely to vary between institutions, depending on their enrolment levels, income sources and responses to the policy.

Nigerian Students Among Major Contributors to UK Education Revenue

Nigeria remains an important source of international students for the United Kingdom, according to Home Office figures cited in the policy discussion.

The figures showed that Nigeria received 26,060 sponsored study visas in the year ending June 2026, placing it behind China, which recorded 86,368 visas, and India, with 82,523.

Pakistan recorded 19,600 sponsored study visas during the same period, while Bangladesh received approximately 8,800.

The figures highlight the scale of student movement from these countries to the UK and the potential significance of changes affecting international recruitment.

Department for Education data also showed that Nigerian students generated £1.7 billion in UK higher education export revenue in 2024.

India contributed £5.3 billion, while China accounted for £4.9 billion. International students collectively generated an estimated £23.9 billion in higher education export revenue.

These figures underline the economic importance of overseas students to British higher education and the wider economy.

For Nigerian students considering the UK, the levy raises questions about how universities will manage the additional costs associated with international enrolment.

The policy, however, places the formal payment obligation on universities rather than directly imposing a £925 annual charge on each international student.

Whether institutions will pass some of the cost on through tuition fees or other charges remains uncertain.

Universities Already Adjusting International Tuition Fees

Some British universities have already announced increases in tuition fees for international students, although the reported adjustments are separate from the levy scheduled to begin in August 2028.

Birmingham City University has raised fees for continuing international students by 2 per cent for the 2026-2027 academic year, with a further increase of 3.5 per cent planned for 2027-2028.

The University of Bath has advised international students who began their studies in 2026 to budget for annual fee increases of up to 8 per cent.

These announcements indicate that international students may need to plan for changes in tuition costs during their studies.

However, the increases cited are university-specific arrangements and do not establish that the forthcoming government levy is responsible for those adjustments.

The extent to which other universities will revise their fees in response to the new policy has not been specified.

Admission Offers and Visa Sponsorship Concerns

The policy announcement comes amid reports that some British universities have withdrawn admission offers to applicants from Nigeria, Pakistan and Bangladesh over concerns about compliance with stricter visa sponsorship requirements.

Such withdrawals could create additional uncertainty for prospective students seeking admission to UK institutions, particularly applicants who have already begun preparing for travel or making financial commitments.

However, the information provided does not identify the universities involved, the number of affected applicants or the specific circumstances surrounding the withdrawn offers.

The annual levy is scheduled to take effect in August 2028, giving institutions time to prepare for its implementation.

As the government prepares to publish an updated impact assessment, universities, international applicants and education stakeholders will be watching for further details on how the policy will affect institutional finances, tuition costs and access to higher education in England.

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