Scotland Rejects £925 UK-wide Levy per International Student Intake

The government of Scotland have formally rejected a proposed United Kingdom (UK)-wide levy of £925 per international student intake from 2028. 

The decision signals a strategic effort to reinforce the nation’s reputation as a premier destination for global talent. Ben Macpherson, minister for Higher and Further Education in Scotland, confirmed the stance at the 2026 Scottish Universities International Group (SUIG) conference in Glasgow. 

The UK government had earlier proposed a new international student levy for universities in England, scheduled to begin in August 2028. Under this plan, higher education providers will be required to pay a flat annual fee of £925 for every international student they enrol. Ministers intend to use the generated revenue to fund maintenance grants for disadvantaged domestic students, a core component of the government’s broader “Plan for Change” initiative. 

Financially, the government expect the levy to generate significant revenue, starting at approximately £445 million in their first year and rising to £480 million by 2030. 

However, official modelling reveals a troubling side effect for the institutions themselves. Because the levy acts as an additional cost that universities may struggle to fully pass on to students, the sector is projected to face a net income loss. 

This deficit is expected to grow from £270 million in 2028 to an annual hit of £330 million by the third year of the programme. 

The implications for the UK’s higher education landscape are profound. While the policy aims to support social mobility for British students, it places a heavy financial burden on universities that are already reliant on international fees to stay solvent. This may force institutions to reconsider their recruitment strategies or cut costs elsewhere to absorb the loss.

It is envisaged that this policy is likely to lead to further tuition increases as universities attempt to recover the £925 fee, potentially making an English degree less competitive compared to options in Scotland or other global destinations. 

The Scottish government’s refusal to adopt the levy is framed as a direct intervention to maintain attractiveness in a tightening global market. And rightly so.