- In-depth analysis reveals the huge contribution of
international students to the UK’s economic prosperity.
- Every part of the UK is financially better off – on average
by £390 per person – because of international students.
- International students in Sheffield, Nottingham, London,
Cardiff, Glasgow and Newcastle are among those to deliver the
greatest financial contributions.
New analysis shows that just one year’s intake of incoming
international students is worth £28.8 billion to the UK economy.
Today’s report, The costs and benefits of international
higher education students to the UK economy, published by
the Higher Education Policy Institute (HEPI) and Universities UK
International (UUKi), with research from London Economics, finds
the benefits of hosting international students significantly
outweighs the costs of international students, including their
use of public services, which are put at £2.9 billion.
The net economic benefit of £25.9 billion is spread across every
part of the UK and the report provides the results for every one
of the 650 Westminster constituencies. For example, the
contribution to the UK economy of international students in the
2018/19 intake resident in Sheffield Central is £290 million.
Other notable results include Nottingham South (£261 million);
Holborn and St Pancras (£243 million); Newcastle upon Tyne East
(£240 million); East Ham (£217 million); Cambridge (£214
million); Cardiff Central (£181 million); and Glasgow Central
(£171 million).
The analysis lands as international student numbers at UK
universities have been hit by the uncertainty caused by Covid-19
and changes to the tuition fee structure for EU students after
Brexit – EU student acceptances to undergraduate degree courses
were 56% lower in early August 2021 than at the same time last
year.
Universities UK International and HEPI are calling for more to be
done to promote the UK as a welcoming, diverse and accessible
study destination. This could include ensuring the success of the
new Graduate route, reducing the financial barriers for
international students, and supporting the improvement of English
language ability.
, Director of HEPI, said:
“This report confirms higher education is one of the UK’s
greatest export earners. The benefits reach every part of the UK,
from Land’s End to John O’Groats. But international students do
not just bring financial benefits. They also bring educational
benefits by making our campuses more diverse and exciting places
to be. To make the most of these benefits, we need to provide a
warm welcome, ensure our educational offer remains competitive
and help international students secure fulfilling careers after
study. The policy environment is, in many respects, more
conducive than it was, with the Government gradually becoming
more positive about international students. But the current
halving in the number of EU students confirms future success
cannot be taken for granted.”
Vivienne Stern, Director of Universities UK
International, said:
“While there has been a growing realisation of the tremendous
social and cultural benefits of international students, this
study provides a stark reminder of their financial importance to
communities across the UK, economic recovery and the levelling up
agenda. We now need fresh ideas and stronger momentum to achieve
the UK Government’s international education strategy target of
attracting at least 600,000 international students every year by
2030 and the good this will bring to everyone.”
Dr Gavan Conlon, Partner at London Economics,
said:
“The net economic impact associated with the 2018/19 cohort of
international students stood at £25.9 billion, with substantial
benefits accrued throughout every region of the UK. After Brexit
and the pandemic, the long-term challenges facing the UK economy
have never been greater. Built on a world-class higher education
sector, international students represent a huge growth
opportunity to the UK economy. Every effort should be made by the
UK Government to further develop this crucial export market.”
For further information, please contact at n.hillman@hepi.ac.ukor on
07730 718247. The 31-page Summary Report is attached and
a longer 105-page version is available on request.
Notes to editors
The analysis shows that there were 496,000 international students
studying for qualifications at higher education institutions
across the United Kingdom in 2018/19 – equivalent to 20% of all
higher education students. It builds on previous research
produced by HEPI, Kaplan International Pathways and London
Economics back inJanuary 2018.
Net economic impact per student was estimated to be £71,000 per
‘typical’ EU-domiciled student in the 2018/19 cohort, and
£102,000 per non-EU domiciled student. In other words, every 14
EU students and every 10 non-EU students generate £1m worth of
net economic impact for the UK economy over the duration of their
studies.
The UK’s international education
strategy includes a target of increasing the number of
international students in the UK to at least 600,000 by 2030 and
the value of education exports to £35 billion per year by 2030.
