On the day Chancellor Rachel Reeves unveiled the federal government’s autumn funds, the Division of Schooling launched an open session on the technical design of its controversial worldwide pupil levy – confirming that England’s universities will probably be charged a flat payment of £925 per worldwide pupil per 12 months from August 2028.
The Division stated the session goals to “make sure the efficient introduction and supply” of the levy, which will probably be collected by the Workplace for College students and utilized to all larger schooling suppliers recruiting worldwide college students.
Publishing the technical session, the federal government stated: “The worldwide pupil levy would require suppliers to pay a flat payment of £925 per worldwide pupil per 12 months… It is going to take impact from 1 August 2028.”
The proceeds will probably be invested into larger schooling and expertise, with ministers stating that the levy will assist fund the reintroduction of focused upkeep grants for deprived college students – a coverage framed as a part of the federal government’s Plan for Change.
Below the proposed design, every supplier will obtain an allowance overlaying their first 220 worldwide college students annually – equal to exempting roughly £200,000 of levy legal responsibility. The federal government says that is meant to scale back disproportionate burdens on smaller or specialist establishments and will probably be “saved below overview”.
Draft laws is because of be revealed in 2026, with additional technical session scheduled earlier than the levy is included in a future Finance Invoice. The brand new cost itself is not going to start till the 2028/29 tutorial 12 months, giving establishments “time to plan for its introduction”.
The worldwide pupil levy will apply to England solely and as soon as it’s launched, the federal government initiatives it’s going to increase roughly £445 million in 12 months one (2028/29) rising to £465 million in 12 months two (2029/30) and £480 million in 12 months three (2030/31).
In the meantime, it initiatives that the higher-education sector may see a internet earnings lack of £270m in 2028/29, rising to £300m in 2029/30 and £330m in 2030/31.
When it comes to pupil enrolments misplaced because of the implementation of the levy, the federal government’s affect evaluation estimates a lack of 14,000 worldwide pupil enrolments within the preliminary 12 months, rising to 16,500 fewer college students by 2030/31.
The levy was first floated in Could’s immigration white paper, with a 6% levy on universities’ worldwide payment earnings initially modelled, sparking widespread concern throughout a sector already going through hefty deficits.
Jess Lister, head of upper schooling at Public First, stated that in the present day’s clarification of a flat £925 per-student payment “marks an actual reversal of fortune” for UK universities.
UK universities have been politically outmanoeuvred earlier this 12 months when Bridget Phillipson framed the brand new worldwide pupil levy as a mechanism to pay for upkeep grants for home college students
Jess Lister, Public First
“UK universities have been politically outmanoeuvred earlier this 12 months when Bridget Phillipson framed the brand new worldwide pupil levy as a mechanism to pay for upkeep grants for home college students,” she informed The PIE.
“Removed from the open-ended share income seize many had feared, the federal government has opted for a extra predictable, contained cost,” commented Lister.
“The brand new construction permits ministers to protect the symbolism of ‘making worldwide college students contribute’, whereas avoiding the destabilising penalties of a extra aggressive levy. For the sector – and for the Russell Group particularly – this represents a uncommon lobbying win.”
Tim Bradshaw, chief govt of the Russell Group, stated that the levy may have a major affect on universities’ potential to put money into instructing, analysis and communities, however “a flat fee payment ought to keep away from the complexities of a percentage-based mannequin and restrict the potential for gaming the system”.
Bradshaw affirmed that the UK “stays a implausible research vacation spot” and stated the federal government ought to proceed to “take each alternative to ship a constructive welcoming message to worldwide college students”.
“We’re additionally happy to see monetary pressures being eased for some UK college students by means of the reintroduction of upkeep grants and await extra element,” the Russell Group chief govt added.
A spokesperson for London Enterprise Faculty welcomed the choice to keep away from a 6% levy on worldwide pupil charges, citing important penalties for larger schooling and knock-on results to the nationwide economic system.
“While we stay involved concerning the imposition of any levy on schooling, which is one in every of Britain’s most profitable exports, a flat-rate levy will assist to guard specialist, world-leading establishments similar to London Enterprise Faculty from a disproportionate affect, in the end supporting the UK as a number one place to check and do enterprise.”
