International students ‘contribute £42 billion to UK economy’

The net contribution of international students to the UK economy has been estimated at £37 billion, even after the cost of their dependants is taken into account.

A new report, published amid more speculation that the government is planning to restrict the number of visas issued to dependants of international students to reduce levels of immigration, has revealed that they put nearly 10 times more into the economy than they take out.

The estimated total benefit to the UK economy from 2021-22 first-year international students over the duration of their studies was approximately £41.9 billion – up by 34 per cent from £31.3 billion in 2018-19.

The study, published jointly by Universities UK International (UUKi), the Higher Education Policy Institute (Hepi) and Kaplan International Pathways, shows that even when estimated costs to public services of £4.4 billion are considered, overseas learners produce a total net benefit of £37.4 billion.

Published in collaboration with the consultancy London Economics, the study says the net economic impact in that year was £125,000 per EU student, and £96,000 per non-EU student.

Jamie Arrowsmith, director of Universities UK International, said international students offered both a cultural and social benefit to the country, and made a “significant contribution” to the economy.

“It is vital that the UK remains an open and welcoming destination for international students, and that their contribution is recognised and valued,” he said.

Higher education was one of the UK’s most important and successful exports, he added, and it was unique because universities created opportunities for millions of learners and helped to address some of the most pressing global challenges.

The report says the estimated economic benefits include the tuition-fee income from students, the income associated with their living costs, and the income associated with the spending of friends and family visiting.

Researchers also estimate that international students in the 2021-22 cohort made an average net contribution of £58 million per parliamentary constituency – equivalent to £560 per citizen.

The constituencies with the highest net impact benefit were Glasgow Central (£292 million), Holborn and St Pancras (£291 million) and Sheffield Central (£273 million).

Prime Minister Rishi Sunak’s cabinet is reportedly mulling over proposals to bar family members from joining international students on their visas, though no official announcement has been made.

It would be a swift policy change, coming just a few years after the government launched its very successful International Education Strategy (IES), aiming for a target of 600,000 overseas learners every year, a goal that was achieved almost a decade early in 2022.

Nick Hillman, director of Hepi, said the number of international students had been rising fast in recent years, despite “mixed messages from policymakers”.

“If there were to be further changes to the rules on international students, then it is vital that these are based on evidence rather than whim,” he added.

Mr Hillman said he hoped the new report would strengthen the evidence base for what international students brought to the UK, and would be read by every candidate for every major political party ahead of the next general election.

Dr Gavan Conlon, partner at London Economics, said international students also allowed universities to undertake world class teaching and research that would not otherwise be possible.

“As one of the UK’s most significant export industries, the success of universities in attracting international students should be applauded,” he said.

patrick.jack@timeshighereducation.com