Universities in England now have clarity on a long-debated proposal to introduce a levy on international student fees. The Autumn Budget has set the charge at a flat £925 ($1200) per overseas student, steering away from an earlier idea of adding a 6% surcharge to foreign tuition. The levy will take effect from August 2028, aligning with the start of the 2028–29 academic year.
According to the government, the measure is intended to generate additional revenue to support higher education and skills programmes, including the reintroduction of maintenance grants for low-income domestic students. However, the grants will be limited in scope: from 2028–29, the maximum award will be £1,000 per year for students from households earning below £25,000, and only for a small set of priority subjects identified in the national industrial strategy.
The changes apply solely to universities in England, as education policy is devolved across the UK. Alongside the new levy, institutions will also see home-student tuition fees rise in line with inflation. The current cap of £9,535 will increase to £9,700 in 2026–27, with fees expected to surpass £10,000 in 2027–28.
The combined measures signal a shift in how England intends to balance university funding, student affordability and reliance on international fee income.
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