England: Government “remains of the view” that the International Student Levy should go ahead; implementation planned for August 2028

The UK first indicated it would explore "a levy on higher education provider income from international students" in its May 2025 immigration white paper. The International Student Levy was subsequently confirmed by England's Department of Education in September 2025, to be charged to higher education providers as a flat fee of £925 per international student per year.

And now, on 13 July 2026, the Department of Education (DfE) has released its response to the 91 submissions filed during a technical consultation that had been open from November 2025 through February 2026.

In the face of considerable opposition from institutions, peak bodies, and other stakeholders – during the consultation period and otherwise – the government response nevertheless affirms that the International Student Levy will proceed and provides the following details.

• The levy will apply to all institutions registered in the Office for Students' registry of English higher education providers
• The levy will apply only to international students – that is, to students who do not qualify for home fee status
• Each provider will receive an exemption for the first 220 students in a reporting year, for which no levy fees will be charged
• Student counts will be based on an existing reporting mechanism: the Jisc Student Record for higher education institutions and, for further education providers of higher education courses, the Individualised Learner Record (ILR)

The Department of Education explains that the following student groups will be exempt from the International Student Levy:

• Students who withdraw within two weeks of a course start
• Those enrolled in transnational education (TNE) programmes outside of the UK
• Students enrolled only in non-credit courses
• Post-doctoral students

The Department indicates, however, that the levy will be charged for students who withdraw from their programme of studies after the initial two-week grace period.

The 13 July DfE response also sets out the timeline for implementation, indicating that the government will run two trial cycles during the 2026/27 and 2027/28 academic years. No fees will be charged during those trials but the levy calculations will be reported back to providers each year. The International Student Levy will come into effect on 1 August 2028 and will apply to international students on course from that point forward.

The government will next table legislation to formally establish the levy as part of the Finance Bill which will be introduced after the government brings in its next budget this fall.

Those opposed

As late as last week, sector leaders had urged the government to reconsider. Speaking at a Higher Education Policy Institute forum on 9 July, Durham University Vice-Chancellor Karen O’Brien said that the levy was "absolute insanity" and urged the government to take it "off the table".

Earlier this month, Universities UK Chief Executive Vivienne Stern said that the Levy "puts us in the bizarre situation of the government effectively putting a tariff on a UK export."

Many of the submissions filed during the November-February consultation projected that the Levy would undermine international student recruitment to the UK, and, by extension, the financial stability of the sector.

In its submission, for example, Universities UK sets out that: "Recent data shows that international student recruitment has fallen materially and remains highly volatile. HESA student record data for 2024/25 shows total international enrolments down 6.1% year-on-year, driven primarily by a 12.5% decline in postgraduate taught enrolments, which have historically underpinned institutional financial sustainability. Home Office visa data indicates that while visa issuances have stabilised in aggregate, volumes remain 13.5% below 2023 levels and market composition continues to shift sharply. These data show that international recruitment is no longer a stable or steadily growing revenue base, but one characterised by sharp year-on-year swings, market concentration and policy sensitivity, increasing the risk that a per-student levy amplifies volatility rather than delivering predictable funding."

Maike Halterbeck, a partner at London Economics, offered this comment on the release this month of a new Higher Education Policy Institute study on the economic impact of international students in the UK:

"This new report provides updated evidence on the substantial economic value that international students bring to the UK economy – value that is spread widely across the country. However, it also demonstrates what the economy stands to lose if and when this major export sector starts to decline. The number of international first-year students coming to the UK has already decreased by around 54,500 (12%) since 2022/23, and is expected to continue to decline as key new policy changes – including the new international student fee levy – come into force."

Finally, Vanessa Wilson, CEO of University Alliance, said in response to the government’s 13 July confirmation that the levy will proceed:

“We are very disappointed that the government has decided to press ahead with the International Student Levy despite the serious concerns raised by universities across the sector. As we have consistently argued, international students make an enormous contribution to our economy, communities and campuses, and this levy risks undermining the UK’s attractiveness at a time of intense global competition.

“It remains deeply counterintuitive to tax institutions that are already delivering opportunity, skills, and social mobility at scale, only to recycle that funding elsewhere in the system. We continue to believe international students are being undervalued in policymaking, and we urge the government to use the implementation period to reconsider the levy’s impact on institutional sustainability and the UK’s long-term international competitiveness.”

For additional background, please see:

• "UK confirms international fee levy of £925 per student starting August 2028"
• "UK confirms levy on international student fees as new analysis argues that government is 'drastically underestimating' the impact of the move"
• "UK sets out new immigration strategy, will reduce Graduate Route work term to 18 months"