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England's £925 International Student Levy: Who Pays, When It Starts, and the 220-Student Allowance

Direct answer

The £925 international student levy in England is paid by registered higher education providers, not by international students themselves. The levy, set at a flat rate of £925 per international student per academic year, takes effect from 1 August 2028 (the 2028–29 academic year). It will be collected by the Office for Students and fully reinvested in higher education and skills. A 220-student allowance per provider, confirmed in the government's consultation response, means the first approximately £200k of levy liability per year is not charged. The draft legislation itself does not specify the 220 number; it authorises the Secretary of State to set an allowance by regulations.

Who pays the levy

The levy is charged to registered higher education providers in England, not to international students. The Department for Education published the draft legislation on GOV.UK on 13 July 2026, and the policy applies to England. Under clause 2 of the draft Finance Bill, a provider is liable for £925 for each international student registered on a higher education course at any point during an academic year. The levy is not a "student tax"—students are not the payer, and the charge falls on the institution.

When it starts and how it is collected

The levy comes into force on 1 August 2028, which is the start of the 2028–29 academic year. The Office for Students will be responsible for collecting the levy. Revenue from the levy is ring-fenced to be fully reinvested in higher education and skills, as stated in the policy document. The draft legislation is part of the Finance Bill 2026–27 and must be approved by Parliament before it becomes law.

The 220-student allowance: draft law vs consultation response

Clause 4 of the draft legislation creates an "Allowance"—it authorises the Secretary of State to make regulations specifying a number of international students for each registered provider for whom the levy will not be charged. The draft clause does not itself state a specific number. In the government's technical consultation response, published after a consultation that ran from 26 November 2025 to 18 February 2026, the government confirmed that providers will receive an allowance of 220 students. This means that for each provider, the levy will not be charged for the first 220 international students, equating to roughly £200k in levy liability waived per year. This 220 figure is a policy commitment from the consultation response, not a number written into the draft bill.

Inflation adjustment and consultation process

Clause 3 of the draft legislation allows the Secretary of State to adjust the £925 amount by regulations to account for inflation. The government conducted a technical consultation on the policy's design and implementation from 26 November 2025 to 18 February 2026, and published an impact assessment alongside it. The consultation received 91 responses. The final design, including the 220-student allowance, reflects the government's response to that consultation.

What is confirmed and what is not

Confirmed in official documents: the levy rate of £925 per international student per year; the start date of 1 August 2028; the payer is the provider; the collector is the Office for Students; the revenue is reinvested in higher education and skills; the allowance mechanism exists in the draft bill; the 220-student allowance is in the consultation response; the inflation adjustment clause; the consultation period and response count; and the requirement for parliamentary approval. Not confirmed in the supplied facts: any specific impact on tuition fees, any effect on university admission difficulty or capacity, any calculation examples showing total levy amounts for specific student numbers, and any rules about how the levy applies based on a student's time spent on campus in the UK. These aspects are not covered by the official sources used here and should be checked with the government's latest publications.

FAQ

Is the £925 levy charged to international students?

No. The levy is charged to registered higher education providers, not to international students. The Department for Education's policy document states that the levy is paid by the provider, and the draft legislation imposes the charge on the institution.

When does the levy start?

The levy takes effect from 1 August 2028, which is the beginning of the 2028–29 academic year. This date is confirmed in the policy document and draft legislation published on GOV.UK.

How does the 220-student allowance work?

The allowance means that for each registered provider, the levy will not be charged for the first 220 international students in a year. This is confirmed in the government's technical consultation response, which states that providers will have an allowance of 220 students, resulting in roughly £200k of levy liability not being charged per year. The draft bill itself only authorises the allowance; the specific number is set by regulations.

Who collects the levy and what is it used for?

The Office for Students will collect the levy. The revenue will be fully reinvested in higher education and skills, as stated in the policy document. The levy is not a tax on students; it is a charge on providers.

Can the £925 amount change?

Yes. Clause 3 of the draft legislation allows the Secretary of State to adjust the amount by regulations to account for inflation. Any change would be subject to the parliamentary process.

Official sources