UK to Impose £925 Annual Levy on Overseas Students from 2028 – What It Means for Indian Applicants

New levy announced

The UK government has confirmed that, starting 1 August 2028, universities in England will be required to pay an International Student Levy of £925 per eligible overseas student each academic year. The charge is levied on the institution, not directly on the student, but it could influence tuition fees, scholarship budgets and recruitment strategies.

How the levy works

• Rate and scope – £925 per eligible international enrolment for the 2028‑29 academic year. The levy applies to students from India, China, Nigeria, Pakistan and other non‑UK countries unless specific exemptions apply.
• Exemption threshold – The first 220 international students at each university are exempt. Any enrolments above that number trigger the charge. For example, a university with 1,000 overseas students would pay £925 × (1,000 – 220) = £721,500 annually.
• Revenue expectations – The government projects the levy will raise £445 million in its first year, rising to £480 million by 2030‑31, with adjustments for inflation possible.
• Administration – The Office for Students (OfS) will oversee implementation and ensure compliance with the published policy on the gov.uk website.

Scale of Indian participation

India remains the largest source of international students in the UK. In the year ending June 2026, 82,523 Indian nationals were granted sponsored study visas, according to the government data cited in the announcement. This volume means that Indian enrolments will form a significant portion of the levy‑bearing cohort.

Potential impact on tuition costs

While the levy is paid by universities, institutions may respond in several ways:

• Maintain current fees – Some universities could absorb the cost, especially those with strong endowments or diversified revenue streams.
• Adjust tuition fees – Others may raise tuition for overseas students to offset the additional expense. Any increase would be at the university’s discretion and not a statutory requirement.
• Re‑evaluate scholarships – Funding bodies and universities might revise scholarship amounts or eligibility criteria to manage budget pressures.

Because the levy is not a direct charge to students, there is no guarantee that every UK university will add £925 to annual tuition. Prospective Indian applicants should therefore treat the levy as a risk factor rather than a fixed price increase.

Practical steps for Indian applicants

• Monitor university fee notices – Universities are required to publish course‑specific fee schedules and any planned increases. Check the latest information on the institution’s website before accepting an offer.
• Review scholarship terms – Confirm whether existing scholarships cover the full tuition for the duration of the programme and whether they are indexed to inflation or policy changes.
• Plan for contingencies – Factor a possible tuition rise of up to £925 per year into financial planning, especially for programmes that start after August 2028.
• Stay updated on policy – The UK government may issue further guidance or adjustments before the levy takes effect. Official updates will be posted on the [gov.uk International Student Levy page](https://www.gov.uk/government/publications/international-student-levy).

What remains uncertain

• University response – The extent to which individual institutions will pass the levy onto students is unknown and will likely vary by university size, financial health and strategic priorities.
• Inflation adjustments – The government has indicated the levy rate could be indexed to inflation, but the timing and magnitude of any changes have not been detailed.
• Exemption criteria – While the first 220 overseas enrolments are exempt, the definition of “eligible” student (e.g., scholarship‑funded, fee‑paying, or certain visa categories) may be refined in future guidance.

How to verify the information

The details above are drawn from the India Today report dated 28 October 2026, which cites the UK government’s policy documents. Readers can verify the announcement by consulting the official UK government release on the International Student Levy at the following URL:

[https://www.indiatoday.in/education-today/news/story/uk-universities-indian-students-925-pounds-more-new-levy-august-2028-study-abroad-additional-cost-3026616-2026-10-28](https://www.indiatoday.in/education-today/news/story/uk-universities-indian-students-925-pounds-more-new-levy-august-2028-study-abroad-additional-cost-3026616-2026-10-28)

Bottom line

From August 2028, English universities will incur a £925 levy per eligible overseas student, generating substantial new revenue for the UK higher‑education system. For Indian students, the levy does not translate into an automatic fee hike, but it adds a layer of financial uncertainty that should be factored into any decision to study in the UK. Keeping abreast of university fee announcements and scholarship policies will be essential for prospective applicants.