England Proposes £925 Annual Fee per International Student: How to Prepare for 2028 Entry

2026-10-04 · Guides

The UK Department for Education has released a draft proposal stating that from August 1, 2028, universities in England will pay a levy of £925 per year for each international student they admit, with the first 220 students per institution exempt. Meanwhile, universities are facing financial pressure, leading to the merger of the University of Kent and the University of Greenwich in August 2026. This article analyzes the impact on Chinese families and how to assess a university's financial stability when selecting a school.

On July 13, 2026, the UK Department for Education published the draft finance bill for the "International Student Levy." The core provision is: Starting from the academic year beginning August 1, 2028, higher education institutions in England will be required to pay the government £925 per year for each international student enrolled.

This fee is paid by the universities, not directly by the students. However, it will increase the cost of enrolling international students, making it important for families planning to enroll in 2028 and beyond to understand in advance.

Basic Rules of the Levy

According to the draft bill published on GOV.UK and the government's consultation response:

Item	Details
Amount	£925 per international student per year
Start Date	From the academic year starting August 1, 2028 (2028/29 academic year)
Paying Party	Higher education providers registered in England
Exemption Threshold	The first 220 international students per institution per year are exempt
Collecting Agency	Collected by the Office for Students (OfS) on behalf of the Secretary of State for Education
Scope	England only

Key points:

Applies only to England. Universities in Scotland, Wales, and Northern Ireland are not covered by this draft.
Two-year pilot first. According to the government's consultation response reported by ICEF Monitor, the levy will be piloted during the 2026/27 and 2027/28 academic years without charging any fees.
Some students are excluded. The same report lists the following exclusions: students who withdraw within the first two weeks of the term, students in transnational education programs studying outside the UK, students on non-credit-bearing courses, and postdoctoral researchers.
Not yet law. This is still a draft. The government plans to submit it to Parliament with the Finance Bill in autumn 2026. Final details will be subject to formal legislation.

What This Means for Families

Will this cost be passed on to tuition fees?

There is no official statement on this yet. Since the levy is paid by the universities, it is currently impossible to determine whether or to what extent individual institutions will absorb this cost through tuition adjustments. Universities UK (UUK) and several university vice-chancellors have publicly opposed the policy, with UUK describing it as equivalent to imposing an "export tariff" on the UK.

A safer approach is: When budgeting for university applications, do not estimate future costs based on today's tuition fees; leave room for tuition increases. This holds true even without the levy.

Which students need to pay attention?

Undergraduates enrolling in Fall 2028 and beyond: for example, students currently in the 9th or 10th grade.
Master's students enrolling in 2028 and beyond: taught master's programs typically last only one year, so the impact is relatively limited, but it still applies.
Those enrolling in 2027 and earlier will not have their first academic year within the formal collection period; however, since undergraduate programs last about three years, subsequent years will fall into the 2028/29 academic year. Whether the levy will affect the tuition of currently enrolled students depends on each institution's tuition policy.

Background: Financial Pressure on UK Universities

Alongside the introduction of the levy, the financial situation of UK higher education institutions is already tight. In its financial sustainability report released on May 14, 2026, the Office for Students (OfS), the higher education regulator for England, noted:

In the 2024-25 financial year, 35.8% of English higher education providers ran a deficit
Institutions themselves project that this proportion will rise to 42.7% in the 2025-26 financial year
In 2024-25, nearly a quarter of institutions incurred restructuring costs (such as voluntary redundancy schemes), with sector-wide restructuring costs rising by 20.7% to £218.2 million

The OfS has warned institutions against making overly optimistic forecasts for future enrollments, listing "over-reliance on international student tuition income" as a persistent risk.

It is important to clarify that "running a deficit" does not mean "the school is closing." Many institutions are improving their finances by cutting costs and adjusting programs, and the OfS report did not name any specific schools facing closure.

Mergers: University of Kent and University of Greenwich Form LASE

In August 2026, the University of Greenwich and the University of Kent announced the completion of their merger, forming the "London and South East University Group" (LASE). According to the University of Greenwich's official website:

The new group has over 50,000 enrolled students and is being called the UK's first "super-university," ranking third in size in the UK
Both institutions retain their respective names, and students will still apply to, attend, and graduate from either the University of Greenwich or the University of Kent
The group officially launched on September 7, 2026, and will allow other universities to join in the future

For current students and applicants, according to the universities' statements, application channels and the degrees awarded remain with the original institutions. If either of these is among your target schools, refer to the latest program information on their respective official websites when applying.

How to Assess a School's "Financial Stability" When Choosing

While most families do not need to read university financial reports, you can pay attention to the following information:

Program stability: Has the target program been suspended, merged, or significantly restructured in recent years? Check the program pages and news on the school's official website.
Official announcements: Schools typically announce news about restructuring, mergers, and layoffs on their official website news sections.
Proportion of international students: Schools with a particularly high percentage of international students may be more affected by policy changes. This is not a judgment of good or bad, just background information to be aware of.
Don't just look at rankings: Rankings reflect metrics like teaching and employment outcomes, not directly financial health.
Schools undergoing mergers or restructuring: Focus on who awards the degree, and whether programs and campuses will change, relying on the school's written statements.

Overall, the fundamentals of UK higher education remain unchanged: short program durations, a concentration of top-tier universities, and high degree recognition. Changes in policy and finances remind us to consider multiple dimensions when choosing schools and to leave room in our budgets, rather than avoiding the UK altogether.

This article is for informational purposes regarding policy only. As of October 4, 2026, the levy remains a draft and is subject to subsequent formal legislation by the UK government.

Need Help?

If you are planning for your child's UK university applications around 2028 and want to sort out your budget, school selection, and timeline together, check out our university admissions planning services and UK university application services, or directly book a one-on-one consultation.