The UK is applying a £925 levy per international student. A new impact assessment (28 Oct 2026) expects universities to lose £1,010m in fees over three years, and most institutions to pass the cost on to students. Separately, the 2026 Budget proposes a two-year Graduate Route again for graduates of high-compliance universities, with details still unclear.
Ask Globro: How will the levy affect my UK budget?What the New UK Levy Assessment Says
According to The PIE News (28 Oct 2026), an updated UK government impact assessment shows the UK international student levy of £925 per international student will hit universities harder than first thought.
- Expected fee loss for UK providers in the first three years: £1,010m, up from an earlier estimate of £900m.
- Expected levy revenue: £1,340m, down from £1,390m in the 2025 assessment. The money is meant for maintenance loans for domestic students.
- About 11,500 fewer international students are expected in the levy's first seven years (the 2025 estimate was 16,500).
Will UK University Fees Rise for Indian Students?
The assessment expects most institutions to pass the levy cost on to students. That means UK university fees for Indian students could go up for future intakes, depending on each university.
The impact will not be equal. The assessment describes a tiered picture: Oxford, Cambridge and Imperial at the top, the rest of the Complete University Guide top 20 next, and lower-ranked institutions below. Higher-tier universities are expected to pass on more of the cost without losing many students.
The government also says future international student numbers are "inherently uncertain", because they depend on competitor countries, exchange rates and the wider economy.
Ask Globro: Which UK universities fit my budget?Graduate Route: A Possible Return to Two Years
On the same day, the 2026 UK Budget included a line to bring the UK Graduate Route back to two years for graduates of high-compliance universities with strong job outcomes. The details are not clear yet.
This matters because the standard Graduate Route is currently due to be shortened to 18 months for applications made from 1 January 2027 (check GOV.UK for the latest rules). If the Budget plan goes ahead, the university you choose may affect how long you can stay and work after your degree.
Ask Globro: Which universities count as high-compliance?What Indian Students Should Do Now
- Shortlist universities and check their latest fee pages for 2027 entry.
- Add a buffer to your budget in case the levy is passed on through higher fees.
- Look at each university's visa compliance record and graduate outcomes, since these may decide high-compliance university status.
- Follow GOV.UK for official Graduate Route details before you commit.
Next, read the UK student visa requirements for Indian students.
Timeline: What Happens Next
| When | What |
|---|---|
| 28 Oct 2026 | Updated levy impact assessment published; Budget mentions a two-year Graduate Route for high-compliance universities |
| 31 Dec 2026 | Last date to apply for the current two-year Graduate visa (per GOV.UK) |
| From 1 Jan 2027 | Standard Graduate Route set to become 18 months |
| To be confirmed | Details of the high-compliance two-year route and how universities pass on the levy |
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