International students bring billions to UK economy, new constituency-level data reveals

Higher Education Policy Institute (HEPI) and Kaplan International Pathways have revealed data on the economic impact of international students across the UK’s newly drawn parliamentary constituencies.   

The research, conducted by London Economics, offers a look at how international students contribute to local economies, potentially reshaping the political discourse around immigration and higher education.  

The figures are staggering.   

In the top three constituencies – Leeds Central & Headingley, Sheffield Central, and Newcastle upon Tyne Central & West – a single year’s intake of international students generates over half a billion pounds each in economic benefits.   

Nick Hillman, Director of HEPI, emphasised the importance of this granular data:   

“Surprisingly little information about our country is available at a constituency level. This limits the quality of political debate because a general election is actually 650 smaller battles – one in every constituency.”  

The new data, Hillman argues, will help explain the positions individual politicians and their parties take towards international students.  

The study highlights stark regional disparities.   

The top 20 constituencies – 17 from England, one each from Scotland, Wales, and Northern Ireland – collectively benefit to the tune of £8.3 billion from international students.   

In contrast, the bottom 20 constituencies see a combined benefit of just £88 million.   

This disparity raises questions about the distribution of economic benefits and the potential for targeted policies to spread the advantages more evenly across the country.  

The findings also cast an interesting light on key political battlegrounds.   

Holborn & St Pancras, where Labour Leader Sir Keir Starmer is seeking re-election, ranks in the top 10 constituencies with benefits worth £438 million.   

On the other end of the spectrum, Clacton, where Reform UK Leader Nigel Farage is campaigning, sees benefits of just £5 million from international students.  

The constituencies of other party leaders show varying levels of impact.   

Conservative Leader Rishi Sunak’S Richmond and Northallerton constituency ranks relatively low at 567th, with benefits amounting to £8 million.   

Liberal Democrat Leader Ed Davey's Kingston & Surbiton fares better, ranking 91st with benefits totalling £146 million.  

Linda Cowan, Managing Director at Kaplan International Pathways, highlighted the broader implications of the research:   

“Regional inequality is one of the key policy areas for this election and this research reinforces the significant economic benefits that international students bring to communities right across the UK, as well as the many other benefits international students bring to our university communities.”  

The study reveals that the total gross benefits across the UK from one year’s intake of international students amount to an impressive £41.9 billion.   

Even after accounting for the impact on public services, the net benefits still stand at a substantial £37.4 billion.  

James Cannings, Senior Economic Consultant at London Economics, urged policymakers to take note:   

“We hope that the incoming Government, and every newly elected MP in every constituency, will pay close attention to these findings – both for the sake of the financial sustainability of the higher education sector, but also for the growth of the UK economy as a whole.”  

The research methodology has been refined since previous studies.  

The methodology utilised more accurate and up-to-date census data to pinpoint where international students actually reside.   

This approach has revealed a more concentrated distribution of economic impact than previously thought, with higher-ranking constituencies seeing significantly larger benefits.  

With the data now being shared with election candidates across the political spectrum, it remains to be seen how this information will influence policy debates and electoral strategies.  

What is clear, however, is that international students are not just temporary visitors but significant contributors to the UK’s economy.  

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