The Budget 2025: UKCISA’s response to the levy on international student fees in England

Today, the government announced further detail of the proposed new levy on English higher education providers’ income from international students, plans of which were first released in the Immigration White Paper in May 2025. The levy will be set at £925 per student per year of study, starting on 1 August 2028 for the academic year 2028-29. It will apply to all new and existing students registered with the provider on or after that date.  

All providers subject to the levy will receive an allowance of 220 international students per year, meaning a provider will not be charged a levy on the first 220 international students.  While this proposed exemption will help providers with low student numbers, for most the levy will be a significant cost. This is income that they will not be able to reinvest in the international student experience. Our latest survey of international students in the UK shows that they are already concerned about the potential for tuition fee increases combined with the ongoing increases in visa fees and the immigration health surcharge, and the Budget announcement will exacerbate these concerns. 

While the proposed levy is not directly imposed on international students, we are concerned it will be felt through increased fees and reduced investment in support and provision, at a time when the sector in under significant financial pressure and facing growing global competition. 

Research by Public First shows that this levy will have a material and long-lasting impact on the domestic and international student experience and hamper any government ambitions to promote the UK’s global education offer.  

We welcome the Government’s consultation on the technical detail of the levy, and we will work with our members to ensure that the Government fully understands the impact of this proposal on higher education institutions and their international students. We will also continue to update members on details around the levy, including as and when draft legislation is published in 2026.