BUILA responds to the Government's International Student Levy consultation response

7th August 2026

BUILA is disappointed by the Government's response to the International Student Levy technical consultation, published on 13 July 2026, which confirms that the levy will proceed broadly as previously announced despite the significant concerns raised by BUILA and the wider sector.

BUILA supports the Government's aim of increasing funding for the higher education and skills system but continues to oppose the levy as the mechanism to fund this.

Although BUILA recognises the Government’s commitment to two trial calculations using 2026/27 and 2027/28 data, and responses to requests for clarifications on transnational education and on how liability will be determined, these adjustments do not address the fundamental concern at the heart of BUILA’s previous consultation responses that the levy represents a material and ongoing financial risk to a sector already under acute pressure. As we set out in our consultation responses, the assumption that providers can simply pass the cost on to students is flawed. International students are highly price-sensitive and increasingly weighing up the value of a UK education against more affordable competitor destinations. Many institutions may need to absorb the cost themselves, diverting funds away from teaching, student support, research, and the cross-subsidy that sustains high-cost and priority subjects for domestic students.

BUILA is also disappointed that the levy will apply regardless of a student's funding source, meaning scholarship-funded students are not exempt, and that the Government has not committed to the further exemptions BUILA and other sector organisations called for, including for exchange and visiting students.

These were among the issues BUILA raised directly with Government through our consultation response, informed by the concerns and evidence shared across our membership. While the Government's response does not address a number of these concerns, our engagement on the detailed implementation of the Levy will continue.

BUILA notes the two-year implementation period and the Government's commitment to continued engagement with the sector and the OfS on guidance and secondary legislation. We will use this period to continue making the case for further exemptions ahead of implementation in August 2028.

As the UK-wide organisation representing international student recruitment practitioners, many of our members at English providers will be closely involved in responding to the levy and managing its practical consequences. We will continue to engage with the Government and provide practical, evidence-based insight to help shape its detailed design and to press the case for further exemptions.

We will be asking the Government to use the implementation period to undertake a full and transparent assessment of the levy's impact on institutional sustainability, as policy stability and clarity have never been more important to maintaining the UK's position as a trusted global destination for international higher education.

We want to reassure our members that BUILA will continue to act in the best interests of international student recruitment practitioners. We will continue to engage with Government on the implications for international recruitment and support BUFDG (the British Universities Finance Directors Group), as the sector's financial and technical lead on the Levy, alongside our wider sector partners.