UK’s Economic Success at Risk as International Student Numbers Decline
Since the launch of the government’s International Education Strategy in 2019, growth in international student recruitment to the UK has delivered a £60 billion boost to the UK’s economy.
New analysis by Universities UK reveals the Graduate Route visa is vital to the UK’s attractiveness as a study destination however emerging data shows international student demand is falling.
The UK government’s International Education Strategy aimed to improve the country’s competitiveness in international recruitment. In 2019, it set the goal to host at least 600,000 international students each year and reintroduced a new post-study work offer.
These actions helped the UK regain its position as a leading study destination for international students.
Recent policy and rhetoric puts this continued success at risk.
Uncertainty over the state of the Graduate Route visa and the termination of student dependants’ right to accompany international students is already having tangible effects on migration levels. Data has shown that uncertainty over post-work opportunities plays a large role in international students’ decision making.
A recent survey undertaken by UUK suggests international student numbers are declining, especially postgraduate taught students.
The results from over 70 universities reveal that international student demand and enrolments are already falling sharply, with a 44% drop at the postgraduate level in January 2024.
These numbers are reinforced by the latest data from Enroly which suggest that international student demand for the UK is down by more than a third on the same point in 2023.
Data gathered by IDP indicates that 45% of applicants would likely change or consider changing their study destination if the post-study work period was shortened or terminated. Meanwhile, 37% has said that the Government’s intention to review the Graduate visa has meant that they are now re-considering study abroad plans or inclined to choose another destination.
Universities are bracing for further drops in international student applications. The British Council have warned that UK universities face “slower growth rates and rising competition” for international students.
The positive economic contribution international students make to the UK economy.
New survey data from Censuswide indicates that the public are largely unaware of international students’ significant economic contribution – only 3% of 2,000 adults correctly answered the annual economic impact of on year’s intake (£41.9bn).
Additionally, when asked how much international students should pay annually towards the NHS, only 3% selected the highest option of £700. The average figure came to just under £350.
Research from London Economics reveals that in 2021/2022, the annual cost per student to the health service was £232. Currently, international students are paying an NHS surcharge of £776 per year.
Vivienne Stern, Chief Executive of UUK, claims:
“The UK is extremely fortunate to be a popular destination for international students. The whole country benefits from their decision to spend a few formative years with us. I regret the fact the government appears to want to diminish our success in this area.
“Our new data shows that if they wanted to see a reduction in numbers, they have already achieved that through policy changes introduced earlier this year. If they go further, they will damage the economies of towns and cities throughout the UK, as well as many universities.
“Given we should be doing everything we can to promote economic growth, this seems to be getting the priorities wrong.”
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