The cost of studying in the UK for international students is likely to go up in the coming years. The British government has finalized an “international student levy” on universities, which could raise the cost of studying in the UK for foreign students.
Under this international student levy, education providers or universities will have to pay a flat fee of £925 per foreign student per year. This amount will be collected by the Office for Students. The levy still needs approval from Parliament, and if approved, it will come into effect from 1 August 2028.
The government has assumed that providers will pass on the cost of the levy to international students, to varying degrees, by increasing tuition fees. However, since international demand is on average price inelastic across the sector, the government believes that fee increases will only lead to a relatively small drop in demand. Because of this, the UK government expects the overall impact on education exports to be positive, rather than negative.
The possibility of this levy was first announced as part of the Immigration White Paper in May 2025. It was later confirmed by the Secretary of State for Education in September 2025.
220 student allowance for providers
The tax liability of providers will be subject to a 220 student allowance. This means a provider will not have to pay the levy on its first 220 international students. However, the levy will be charged at the full rate on every student beyond that number.
Current cost of education in the UK
Fees for courses in the UK already differ depending on the level of study and location, with humanities and social sciences degrees generally being the least expensive, while laboratory and clinical programmes cost the most.
According to the British Council, international undergraduate tuition fees range from £11,400 to £38,000, with degree courses lasting three years in England, Wales, and Northern Ireland, and four years in Scotland. International postgraduate tuition fees in the UK range from £9,000 to £30,000.
Many postgraduate courses can be completed in one year of full-time study, which can lead to savings on both money and time, and quicker entry into the workforce, compared to traditional two-year programmes.
Living costs and visa requirements
The British Council also notes that an international student coming to the UK without dependants can expect to pay around £1,300-£1,400 per month in London, or £900-£1,300 per month in the rest of the UK, to cover accommodation, bills, groceries, and other living expenses during their studies.
Additionally, when applying for a Student visa, applicants must demonstrate sufficient funds to cover course fees, living costs, and the living costs of any partners or children they plan to bring with them. Applicants must show they can cover the course fees indicated on their Confirmation of Acceptance for Studies (CAS), which their education provider issues once they are accepted into a course.
Disclaimer: This article is for informational purposes only and does not constitute financial, immigration, legal, or professional advice of any kind. The proposed international student levy is subject to parliamentary approval and its terms, timeline, or implementation may change before or after 1 August 2028. Readers planning to study in the UK, or education providers assessing financial impact, should consult official UK government sources, the Office for Students, and qualified immigration or financial advisors before making any decisions.