The UK Government has confirmed that an International Student Levy will be introduced for higher education providers in England from 1 August 2028.
Under the proposals, higher education providers will pay a levy of £925 per international student per year, with the Government stating that the revenue will be reinvested into higher education and skills. The first 220 international students at each provider will be exempt from the calculation, recognising the different operating models of smaller and specialist institutions.
While the levy applies to higher education providers rather than students directly, it raises important questions about the UK’s continued competitiveness as an international study destination.
For BETA members, the implications extend well beyond universities. International students generate demand across the wider educational travel and visitor economy, supporting accommodation providers, transport operators, attractions, cultural venues, language schools, destinations and local businesses throughout the UK.
Any policy that affects the UK’s competitiveness, international student recruitment or students’ spending power could therefore have consequences across this broader ecosystem. It is important that the impact of the levy is considered not only in terms of university finances, but also in relation to the jobs, businesses and regional economies supported by international students.
The announcement also comes as the Government begins a new chapter under recently appointed Secretary of State for Education, Lucy Powell. As the detailed implementation of the levy develops over the coming months and years, BETA hopes there will be continued engagement with the international education sector and recognition of the significant contribution that international students make to the UK economy.
International students contribute far more than tuition fees alone. They travel throughout the UK, stay in accommodation, use public transport, visit attractions, participate in cultural activities and support businesses in destinations across the country. Their presence benefits communities well beyond university campuses.
BETA will continue to monitor the development of the International Student Levy and engage with government and industry partners to ensure the wider educational travel sector is recognised in future policy discussions. As always, we welcome feedback from members on how changes to the international education landscape are affecting their businesses.
Author: Helen Leigh
