On 26 November 2025, Chancellor of the Exchequer Rachel Reeves delivered the UK's new budget, complete with details of the new levy on international student fees. On the same day, the Department of Education opened that will remain open until 18 February 2026.

Between the two announcements, the shape of the new levy has begun to take shape more clearly. The key elements include:

1. The levy will come into effect on 1 August 2028.
2. Rather than a percentage of student fees, it will be a fixed rate of £925 per student.
3. The levy will apply to all English higher education providers registered with the Office for Students.
4. The levy applies after the first 220 international student enrolments at a given institution. So an institution with 700 foreign students enrolled, for example, would be required to pay a levy of £444,000 (700 - 220 x £925).

The international student levy was first introduced as a policy instrument in the government's May 2025 immigration white paper. It was originally expected to be implemented as a percentage of student fees, the prospect of which led some analysis to project a significant impact on foreign enrolment in the UK (and to the suggestion that the government's own analysis was seriously understating that impact).

On 29 September, the Department of Education announced that it would reinstate " – at college or University – paid for by a new levy on international student fees" for "disadvantaged students studying priority courses."

Responding to the forthcoming introduction of the now-flat-rate levy on international student fees, Universities UK President Malcolm Press said, "The international student recruitment market is competitive and fees in the UK are high. As a result of today’s announcement of a levy on international fees, universities now face the prospect of either reducing cross-subsidies that support teaching and research, and/or raising international fees still further, which has the potential to drive down international numbers, ultimately limiting our ability to support UK students."

"The international student levy will have a significant impact on universities’ ability to invest in teaching, research and communities, but a flat rate fee should avoid the complexities of a percentage-based model and limit the potential for gaming the system," added Russell Group Chief Executive Dr Tim Bradshaw. "We will now look to work closely with government through the consultation process to avoid unintended consequences and minimise administrative burden."

For additional background, please see:

• "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"