The plan, announced by the Department for Education, is scheduled to take effect in the 2028–2029 academic year. Each university would be exempt for its first 220 international students annually, and the fee could later rise with inflation. Scotland, Wales, and Northern Ireland would not be affected.
The U.K. government expects the levy to generate £445 million ($593.7 million) in its first year and increase in subsequent years.
That money would be redirected into supporting disadvantaged domestic students, part of a broader goal to ensure two-thirds of young people continue their studies beyond secondary school.
But universities and analysts say the policy may backfire.
Sector leaders argue that international tuition fees, already among the highest in the world, would likely climb even further.
Malcolm Press of Universities U.K. warns that raising fees could drive international students away, creating funding gaps so severe that universities might be forced to cut domestic enrollment, undermining the government’s own aims, Pie News reported.
Government estimates suggest the U.K. could lose 14,000 international students in the first year alone, rising to 16,500 by 2030–2031. Research group Public First projects domestic enrollment could fall by as many as 135,000 places if universities lose too much revenue.
Critics also note an irony: the levy could harm the very students it is meant to support. Universities rely heavily on international tuition to finance scholarships, support services and career programs for vulnerable domestic students. If revenue shrinks, those programs may be the first to go.
Smaller and less prestigious universities may face the biggest blow. Unlike top-tier institutions, they cannot easily raise fees to absorb the cost of the levy.
The proposal is now open for public consultation until mid-February.
International students currently make up a major economic force in the U.K., more than 730,000 in the 2023–2024 academic year, contributing an estimated £42 billion to the national economy. Many universities depend on them for up to one-fifth of total income. Tuition for non-EU international students ranges widely, from £20,000 to over £40,000 a year, and nearly £68,000 for medicine. Domestic student fees, by contrast, are capped at £9,250.
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