New Zealanders and Australians wanting to spend more than six months in the United Kingdom on their OE will soon have to pay a health charge worth hundreds of dollars.
British Immigration Minister James Brokenshire this week announced the STG200 ($A405.64) charge, which will help fund the country's free health system, would come into force from April 6.
It will apply to those wanting to stay for more than six months or those applying to extend their OE in Britain.
Younger applicants, those between 18 and 30, can pay a discounted charge of STG150 ($A304.23).
The Immigration Health Surcharge was introduced last year to all non-European Union nationals but New Zealanders and Australians were exempt.
In six months it raised STG100 million but Britain now wants Kiwis and Aussies to contribute.
"We believe it is only fair that Australian and New Zealand nationals, who have previously benefited from a one-year exemption from the immigration health surcharge, will now contribute to our health service in the same way as other non-EEA nationals," Mr Brokenshire said.
Prime Minister John Key says the move is another that chips away at New Zealanders' rights as Britain tightens up rules around who can live and work there.
It was not in keeping with the history of the two countries, he told the New Zealand Herald.
Labour and the Greens said the situation showed the government's lack of strength at the negotiating table.
"This is a long-standing reciprocal agreement and you don't unilaterally change it," Labour's Annette King told the paper.
"If New Zealand citizens lose the right to free health care, we would need to change our legislation because that's what reciprocal means."
