UK universities to cost Indian students 925 pounds more: What the new levy means

The UK government plans to charge universities in the United Kingdom 925 pounds annually for each eligible overseas student from August 2028. Its impact on Indian applicants will depend on whether institutions pass on the additional cost.

In Short

• First 220 overseas enrolments at each institution remain exempt from the charge
• Office for Students is expected to oversee implementation across England
• Government projects first-year revenue of £445 million for education and skills

Indian students planning to study in the UK may face higher education costs. The UK government plans to introduce an annual levy of 925 pounds (about USD 1,200) for universities in England for each eligible international student from August 2028.

The proposed International Student Levy will be charged to universities for eligible overseas enrolments. Although students will not be required to pay the levy directly, the additional expense could influence universities’ tuition fee structures, scholarship policies and international recruitment strategies, potentially affecting the overall cost of studying in the UK.

According to the UK government’s published policy, the levy is scheduled to take effect from August 1, 2028, covering the 2028–29 academic year. The government expects the measure to generate approximately 445 million pounds in its first year.

INDIAN STUDENTS AMONG THOSE AFFECTED

India remains one of the largest sources of international students for British universities. Figures cited in the reports show that the UK issued 82,523 sponsored study visas to Indian nationals in the year ending June 2026.

Under the proposed policy, international students from India, China, Nigeria, Pakistan and other countries will fall within the levy’s scope, subject to the applicable rules and exemptions.

HOW MUCH WILL UNIVERSITIES HAVE TO PAY?

The levy is set at 925 pounds per eligible international student per academic year. Under the exemption arrangements described in the gov.uk website, the first 220 international student enrolments at each institution will not attract the charge, with the levy applying to enrolments above that threshold.

For instance, a university enrolling 1,000 international students would face an annual levy of 721,500 pounds after accounting for the 220-student exemption.

The Office for Students is expected to oversee the levy’s implementation, while the government has indicated that the rate may be adjusted for inflation.

The policy is intended to generate additional funding for England’s higher education and skills system. Government projections put levy revenue at 445 million pounds in 2028–29, rising to 465 million pounds in 2029–30 and 480 million pounds in 2030–31.

COULD STUDYING IN THE UK BECOME MORE EXPENSIVE FOR INDIANS?

The immediate financial liability will rest with universities rather than individual students. However, institutions facing higher operating costs could consider changes to international tuition fees, scholarships or other financial support.

Any such increase is not automatic, and the final impact will depend on individual universities’ financial positions and pricing decisions. Students should therefore avoid assuming that every UK university will add £925 to their annual tuition fees.

For Indian applicants, the levy adds another factor to consider when comparing institutions. Prospective students should check the latest course-specific fee schedules, scholarship terms and policies on annual fee increases before accepting an offer.

WHAT SHOULD INDIAN APPLICANTS DO?

Students planning to begin their studies before August 2028 should monitor announcements from their chosen universities, while those considering later intakes should factor possible changes in tuition fees into their financial planning.

Applicants should also confirm whether scholarships will remain available, whether tuition fees are fixed for the duration of their course and how institutions communicate any future fee revisions.

The proposed levy does not, by itself, mean that Indian students will have to pay an additional £925 directly. Its eventual effect on affordability will depend on how universities respond to the new cost and whether any changes are passed on to international students.

With implementation scheduled for August 2028, Indian students considering the UK will need to keep track of official policy updates and university-specific fee announcements before making final decisions.

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