UK universities are facing a potential financial deficit as the number of international students from Nigeria and India declines, according to a new report. The chief executive of Universities UK, Vivienne Stern, has warned that many universities are at risk due to the hostile rhetoric and immigration policies of Prime Minister Rishi Sunak's government. These policies have deterred international students from choosing to study in the UK.
Stern expressed concern about a "serious overcorrection" in the sector, as the government's rhetoric and policy changes have discouraged potential students from coming to the UK. Some prestigious universities, including York, have already been forced to lower their entry requirements to maintain the number of overseas students. Stern emphasized the need for a change in policy and rhetoric to prevent further damage to the sector.
UK universities have become increasingly reliant on non-EU students to compensate for the frozen domestic tuition fees of £9,250 over the past decade. Fees from non-EU students now make up nearly 20% of the sector's income. However, recent policy moves by the government have led to a significant decline in student numbers, particularly from countries like Nigeria and India.
The sector as a whole has been "spooked" by data showing that the number of international students enrolling in January 2024 is well below projected figures. In January, Sunak highlighted changes in government policy that restrict international graduate students from bringing their families to the UK. The government also announced a review of the "graduate route" that allows international students to work in the UK for two years after graduation, as well as a crackdown on "low-value courses."
Data from Enroly, a web platform used by one in three international students for university enrollment, reveals a 37% decrease in deposit payments compared to last year. A new analysis by PwC for Universities UK indicates that the combination of declining international student numbers, frozen tuition fees, increasing staff wage bills, and a softening in UK student numbers is creating a perfect storm for the sector.
Stern warns that the government needs to recognize the risk posed to a sector that contributes £71 billion to the UK economy annually. Without policy changes and support, many universities may face financial difficulties. The decline in international student numbers is a significant concern, as their fees play a crucial role in supporting the sector's financial stability.
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