UK to legislate £925 international student levy after October 28 Budget

The UK government has said it will put its £925-a-year international student levy into law through the Finance Bill that follows its Budget of Wednesday, October 28, 2026. In a Westminster Hall debate in the House of Commons the same day, the government described the levy as a flat £925 for each international student per year from 2028-29, paid by universities and other higher education providers in England, with each provider given an allowance of 220 students. The levy is due to take effect from August 1, 2028.

For an Indian student planning a degree in England from 2028, the levy will not appear as a separate line on a visa form or a fee invoice. It is a charge on the university. But it can still reach students indirectly. Universities have warned that the levy could push international student numbers down, especially if they raise fees to cover the cost. A university with many international students would pay £925 for each one above its first 220, and some may pass part of that on through higher tuition, fewer scholarships or reduced spending elsewhere.

The scale is large. Government projections, as reported, put the levy's receipts at about £445 million in 2028-29. Reports on the plan list India among the countries whose students will be most affected, alongside China, Nigeria, Pakistan and Bangladesh. Because the levy applies only in England, universities in Scotland, Wales and Northern Ireland are not covered by this charge.

The October 28 announcement moves the levy from consultation to law-making. Until now, it was a policy proposal with a published design. Putting it in the Finance Bill means Parliament will vote on it as part of the government's tax and spending plans. Universities and student groups will still be able to lobby on details, and the promised updated impact assessment should give new estimates of its effect.

What should students do now? Those applying for courses that begin before August 2028 are not affected by the levy itself. Those planning to start in 2028 or later should watch for fee announcements from their shortlisted universities, compare total costs including scholarships, and look at universities in other parts of the UK and in other countries as part of their research.

England's international student levy at a glance Item | Detail Charge | £925 per international student per year Who pays | The university or provider Allowance | First 220 international students Start date | August 1, 2028 Where | England only Use of money | Maintenance grants for disadvantaged home students

Short-term: Nothing changes for students starting courses in 2026 or 2027. The next steps are the Finance Bill, which will carry the levy into law, and the government's updated impact assessment.

Long-term: From 2028-29, English universities with large international intakes will face a new annual cost. How they respond, through fees, scholarships or recruitment, will shape what Indian and other international students pay to study in England.

Who is affected: Indian students and parents planning to study in England from 2028; English universities and further education providers that teach international students; education agents and counsellors; and home students from disadvantaged backgrounds who would receive the maintenance grants.

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