The continued decline in the number of international students arriving in the UK will result in a “significant income loss” for the country’s universities, it has been warned.
New figures from the Home Office show that 8,900 would-be learners applied for visas in October – the lowest monthly total since March and a fall of 14 per cent from the same month in 2023.
It means that a total of 359,600 international students have applied for visas in the first 10 months of the year – 16 per cent less than in 2023.
RSM, a leading audit, tax and consulting firm, warned that the figures show a continuing downward trend since the policy change on dependants came into force in January 2024.
Louise Tweedie, partner and higher education specialist at RSM, said: “This is a significant income loss for the sector and will hit some institutions hard, especially those impacted by the changing profile of home students, as increasing numbers are registering at higher tariff institutions.
“These changing home and international student choices will require some institutions to revisit financial forecasts and reassess their financial sustainability plans.”
While the recently announced increase in domestic tuition fees will provide a “welcome boost” to sector finances, Ms Tweedie said transformation and change will now be “centre of mind for a number of universities to support long-term planning and financial sustainability”.
Along with the main applicants, the Home Office data shows that just 1,300 dependants submitted applications for visas in October – the lowest monthly total since at least January 2022.
This represents a fall of 89 per cent from October 2023, and 85 per cent for the year-to-date on last year.
The change in government policy around family members was introduced by Rishi Sunak’s Conservative government to combat record migration levels to the UK in 2023 – on which new research sheds further light.
A report from the Organisation for Economic Co-operation and Development (OECD) shows that permanent migration to the UK increased 53 per cent between 2022 and 2023 – the largest increase of all member countries.
It shows that the number of tertiary-level students in the UK – as measured by residence permits issued – fell by 6 per cent that year.
But the report found that the number of students’ family members increased by 144,000 – making up more than 30 per cent of total student-related intake.
This meant the UK had one of the highest proportions of dependants of all OECD countries that provided data, alongside Denmark and Sweden. In contrast, accompanying family members made up just six in every 100 international students in the US.
The UK’s change in policy means it joins Ireland, Lithuania, Luxembourg and Turkey in preventing students’ partners from accompanying them or benefiting from family reunification, according to the report.
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