Prime Highlights
- International students enrolling in 2024/25 are expected to generate a net economic benefit of £40.4 billion for the UK.
- The report warns that falling international student numbers could reduce economic growth and weaken the UK’s global education position.
Key Facts
- The study was published by HEPI and Kaplan International Pathways and produced by London Economics.
- Around 404,500 international students are expected to support 287,300 full-time equivalent jobs across the UK.
Background
It has been estimated that international students enrolling on higher education in the UK during the period 2024/25 will contribute economically to an amount of £40.4 billion, according to a study conducted by the Higher Education Policy Institute (HEPI), Kaplan International Pathways and London Economics.
It is estimated in the report that 404,500 international students will be contributing £45.1 billion to the UK economy, but costing the public sector £4.7 billion. Thus, there is an estimated ratio of benefit to cost of 9.7 to 1. In other words, each international student makes a net economic contribution of about £100,000.
Researchers estimated that the current student intake will help support about 287,300 full-time equivalent jobs. They also found that international students contribute an average of £62 million to every parliamentary constituency, equal to about £580 per resident.
The report, however, warned that falling international student numbers are beginning to affect the UK economy. First-year enrolments have dropped by about 54,500, or 12%, since the 2022/23 academic year. Researchers said the decline follows policy changes, including restrictions on dependants, stricter university compliance rules and plans for a levy on international student fees.
The study estimated that if recruitment had remained at 2022/23 levels, the latest student intake would have added another £2.9 billion to the economy.
The report said international education remains an important contributor to economic growth across the UK. It also warned that further declines in student numbers could weaken university finances, reduce local economic activity and affect the country’s position as a leading global study destination.
