Saturday, November 27

International Students in the UK Generate Huge Profits: Study | International students

Admission of international students to British universities for one year generates economic activity worth 390 pounds per person in the United Kingdom each year, increasing to more than 700 pounds for each inhabitant of London, according to a published study today.

Overall, 272,000 students from outside the UK who started their university courses in 2018-19 would generate close to £ 26bn in net economic activity once the costs of supporting teaching and their use of public services had been accounted for .

That means that just 10 international students arriving from outside the EU will generate £ 1 million of net economic impact during their studies.

The figures come from an analysis of the income of the UK economy from tuition fees and other expenses for each group of international students, including those from the EU, and the subsequent multiplier effect on the economy in terms of jobs created and additional expense.

The research, published by the Higher Education Policy Institute (Hepi) and Universities UK International (UUKI), showed the benefits of international students spread across the UK.

Districts that host universities are likely to see their local economy stimulated by additional spending: the report estimates that Sheffield Central benefits from nearly 3,000 students to the tune of £ 290 million, and Nottingham South by £ 261 million for each student year .

Vivienne Stern, Director of UUKI, said: “While there has been a growing understanding 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, the recovery economic and leveling -up agenda “.

Figures show that the economic benefits generated by international students far outweigh the costs of public services such as healthcare. Including central government grants for teaching, as well as net NHS spending and other social expenditures such as police and education, the costs amount to just £ 2.9 billion.

Figures compiled by London Economics do not take into account opportunity costs and exclude longer-term benefits such as investment, business and trade links.

The net total of £ 26bn is 19% higher in real terms than a similar analysis using figures from 2015-16, mainly driven by the increase in the number of international students. In 2015-16, 174,000 international students from outside the EU completed their first year of study in the UK, and in 2018-19 the figure had risen to almost 208,000.

The study showed that approximately £ 4.7 billion of net impact originated with EU students, while the remaining £ 21.3 billion was generated by non-EU students. However, those figures are from when EU students were still eligible for national fees and student loans.

Since the end of Brexit, EU-domiciled students have been charged the same higher tuition fees as international students. This year there has been a drop of more than 50% in the number of EU students accepting places in undergraduate courses in the UK, from 22,000 in 2020 to 9,800 in 2021.

Nick Hillman, director of Hepi, said the results confirmed that higher education was one of the UK’s main sources of export earnings. “We need to extend a warm welcome, ensure that our educational offerings remain competitive, and help international students secure successful careers after studying.

“The political environment is, in many ways, more conducive than it was, and the government is gradually becoming more positive about international students. But the current halving in the number of EU students confirms that future success cannot be taken for granted, ”said Hillman.

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