“We are concerned about the international student levy confirmed today in the Budget. At a time when many universities, a crucial part of our research system, are already under financial pressure the impacts of this tax will be unpredictable and could be damaging. Reduced income for universities will mean less is available to invest in world-leading research teams, in high-cost research facilities, and in work to underpin local communities and economic growth – a Government priority restated by Liz Kendall only a few days ago.
“The Government often speaks of the value and importance of UK research and universities’ role in it, albeit not in the Chancellor’s speech today. It is hard to reconcile this positive rhetoric with the international student levy. I urge them to engage with the sector on the impact this measure will have on the research system.”
Dr Alicia Greated
Executive Director, Campaign for Science and Engineering (CaSE)
Investment
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ExploreDetail of the International Student Levy and relevant context
In the Budget
Page 105, 4.90 International Student Levy – The government is introducing a new levy on higher education providers’ income from international students, of £925 per student per year of study, starting in August 2028 academic year 2028-29. All providers will be given an allowance for the first 220 international students per year, for whom they will not pay the charge. The income raised by the Levy will be fully reinvested into higher education and skills, including to fund maintenance grants for disadvantaged students studying priority courses. We will keep the rate under review, with future decisions on deployment of the proceeds set out at the next spending review.
Funding, finance and reform: an analysis of the Post-16 Education and Skills White Paper – The Institute for Fiscal Studies, November 2025
Page 32. A new levy on international students – “Across universities in England, average tuition fee income per full-time international student per year was around £19,000 in 2023/24, but this ranged from more than £30,000 … to less than £10,000”.
The fixed £925 per student per year levy represents a 4.9% levy on the average fee income of £19,000 per student per year, ranging from 3.1% of £30,000 to 9.3% of £10,000.
Counting the cost: Modelling the economic impact of a potential levy on international student fees – Public First, September 2025
Research by Public First has shown that there is limited scope to increase international student fees due to the levy without significantly reducing demand – and therefore income. Public First projects that, with a 6.38% rise in international student fees, the sector will lose over 16,100 international students in the first year the levy is introduced, at a combined cost of £240m.
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