Planning for the international student levy or home fee cap increases?

The government has launched a consultation on various aspects of the levy on English higher education providers, adding detail to the headline announcement in the budget. Some of the key elements include:

• The levy will take effect from 1 August 2028 and will be administered by the OfS. Draft legislation will be published in 2026.
• When calculating the annual levy, there will be an allowance of 220 international students for which the provider will not be charged; this is intended to avoid unfairly penalising smaller/specialist providers and to provide an allowance for some student drop-out. Above that number, the levy will be a set fee of £925 for each international student. This is a fixed amount regardless of whether the student is full-time or part-time.
• The levy is calculated in each academic year and the OfS will invoice providers in January of the following year. There will be an administrative review process for providers to challenge inaccuracies.
• The consultation details the definitions of providers, courses and international students that will be used when the levy takes effect. International students are higher education students who do not qualify for home fee status, but excluding those recruited on short-term study visas.  
• It is proposed that the levy will apply to higher education providers whose activities are carried on, or principally carried on, in England and who are registered with the OfS. The consultation has further detail on matters such as how the levy is intended to apply to OfS registered FE providers.  
• The consultation indicates that the levy will apply to all international students registered with the provider, regardless of whether the student attends franchised or otherwise subcontracted provision. It also provides that the levy will apply in relation to international students anywhere within any of the constituent parts comprising the legal entity registered with the OfS. The consultation states this “is inclusive of any embedded colleges, joint ventures or related undertakings which are controlled (wholly or partly, and directly or indirectly) by the OfS-registered provider”.
• It is said that transnational education delivered in a country other than the United Kingdom will not be in scope of the levy.   

Further information is set out in the consultation, including further mechanics for calculating the levy, data return requirements etc. The consultation closes on 18 February.

Providers will be considering the practical and financial implications in light of their particular circumstances, and they and sector bodies will be engaging with the consultation.

Tuition fee increases for home or international students

Alongside the information concerning the levy, the government has also announced further detail on increases to the cap on the maximum fees for home undergraduate courses in 2026/27 and 2027/28.  

Following these announcements, where providers are considering increasing their tuition fees for either home or international students and applicants, they will need to ensure that they meet relevant consumer law and regulatory obligations. We set out some of the relevant considerations in a previous blog. Providers should also note that since that blog, the Digital Markets, Competition and Consumers Act 2024 has come into force, bringing with it new price transparency provisions that further impact on what price information Universities are required to provide.

If you require advice in relation to the levy and/or tuition fee increases, do not hesitate to contact a member of our education law team or your usual Mills & Reeve contact.