Committee publication · Correspondence · 29 April 2025

Letter from BUILA on Higher Education dated 23.04.25

Inquiry: Higher Education and Funding: Threat of Insolvency and International Students

Summary

BUILA, representing international education staff across 147 UK institutions, provides written evidence to the Education Committee on the financial sustainability of higher education. The letter emphasises international students' £100,000 net economic contribution per person, highlights an 80% decline in postgraduate recruitment, and urges the Government to maintain the Graduate visa and provide policy clarity to stabilise the sector amid global competition.

Key findings

Each international student brings approximately £100,000 of net economic benefit to the UK; each parliamentary constituency gains £58m on average from international students' spending.
International student fees generate 45% of total tuition fee income for universities; domestic teaching operates at an 8p loss per pound whilst international teaching yields 31p per pound.
80% of universities reported decreased postgraduate enrolments for 2024–25; overall international student enrolments down 20% year-on-year, with severe declines in key markets (Nigeria -65%, India -34%, Pakistan -31%).
Main study visa applications fell 13% year-on-year to January 2025 (411,100 vs 472,100); policy turbulence and migration restrictions have damaged UK competitiveness versus the US, Australia, and Canada.
International students contributed £357 million annually to the NHS through health surcharge in 2022–23; increased 66% to £776 in February 2024, now estimated at over £500 million yearly, whilst this young demographic makes minimal use of services.

Tone

Factual

Topics

higher-educationinternational-studentsuniversity-financemigration-policyeconomic-growth

Key actors

Andrew Bird, BUILA Chair, Helen Hayes MP, Education Select Committee Chair, Dr Hollie Chandler, The Russell Group, Rachel Hewitt, MillionPlus, Migration Advisory Committee, Universities UK International, UK Government

Notable line

“… in the context of global volatility in which student visas are being terminated in the US and upcoming elections raising uncertainty around international student policy in Australia and Canada, there is a significant opportunity for the UK to position itself as the stable and welcoming choice”

Key Quotes

“Each international student brings approximately £100,000 of net economic benefits to the country 1 . This results in, on average …”
— Andrew Bird, BUILA Chair · outlining the economic value of international students to the UK

“… helping universities to expand the range of courses offered while making up for financial losses on domestic students and research”
— Migration Advisory Committee · on the Graduate visa's role in university finances

“… universities make on average 31p for every pound spent on teaching international students, whilst domestic teaching makes an 8p loss for every pound spent”
— Andrew Bird, BUILA Chair · explaining the financial subsidy international students provide to universities

“80% of universities reported a decrease in post-graduate enrolments from international students for 2024-25 compared with the previous year. Overall, the number enrolling is down 20%.”
— Andrew Bird, BUILA Chair · reporting latest international student recruitment figures

“Today, the Government's positive rhetoric around international students has been welcomed by the sector, however, this needs to be matched by supportive policies.”
— Andrew Bird, BUILA Chair · on the gap between government statements and actual policy action

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Source · parliament.uk record ↗