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International students boost UK economy by £41.9 billion
Last updated on Tuesday 16 May 2023 at 9:43am
New data reveals that the intake of international students in the 2021/22 academic year contributed a huge £41.9 billion to the UK economy.
- New figures show economic benefit of international students rose from £31.3bn to £41.9bn between 2018/19 and 2021/22
- International students in Glasgow, London, Sheffield, Nottingham and Newcastle are among those to deliver the greatest financial contributions
- On average, each of the 650 parliamentary constituencies in the UK is £58m (per constituency) better off because of international students – equivalent to approximately £560 per citizen
- Even when accounting for dependants and other costs international students are a huge net contributor to the UK economy
- Every 11 non-EU students generates £1m worth of net economic impact for the UK economy
Today’s report, The costs and benefits of international higher education students to the UK, published by Universities UK International (UUKi), the Higher Education Policy Institute (HEPI) and Kaplan International Pathways in collaboration with London Economics, reveals the growing importance of international students to local economies throughout the UK.
The report, which was commissioned to explore the impact of international students to the UK economy, reveals economic benefits have risen from £31.3bn to £41.9bn between 2018/19 to 2021/22, an increase of 34%. The data also confirm that – even when accounting for the impact on public services (estimated at £4.4 bn) – the economic benefits of hosting international students significantly outweigh the costs with a total net benefit of £37.4bn to the UK economy.
The net economic impact of international students has seen a dramatic rise over the past few years – up 58% since 2015/16, (£23.6bn to £37.4bn). One reason for this is the 68% rise in the number of students (now standing at 350,145) from non-EU countries since 2018/19. Data from the report indicate that every 11 non-EU students generate £1m worth of net economic impact for the UK economy – or £96,000 per non-EU domiciled student.
Findings from the study will be announced at a live event in London, hosted by HEPI. At the event, it will be shown that international students living in constituencies in Glasgow, Newcastle, Sheffield, Nottingham and London deliver the greatest financial contributions, showcasing the nationwide spread of international students to the country’s economy. On average, international students make a £58 million net economic contribution per constituency, equivalent to approximately £560 per citizen.
In total, 381,000 first year international students enrolled into UK universities in 2021/22, highlighting the global appeal of the country’s higher education institutions and cementing our place as one of the leading destinations for international students. Demonstrating the spread of international students across England, the report shows that 98,825 students studied in London, 31,360 studied in Yorkshire and the Humber, 29,750 in the West Midlands, 27,680 in the Northwest, 24,835 in the East of England, 24,235 in the East Midlands, 18,715 in the Northeast and 19,700 in the Southwest. In relation to the other UK home nations, there were 44,085 international first-year students studying in Scotland, 14,905 in Wales, and 12,615 in Northern Ireland.
Jamie Arrowsmith, Director of Universities UK International said:
This report further highlights the positive contribution that international students make to the UK. They offer both a cultural and social benefit to our country, and make a significant contribution to our economy. We should be proud that our universities continue to attract students from all over the world. It is vital that the UK remains an open and welcoming destination for international students, and that their contribution is recognised and valued. Higher education is one of the UK’s most important and successful exports – but it is truly unique, in that alongside generating a significant economic contribution to the UK our universities have a hugely positive global impact, creating opportunity for millions of learners and helping address some of the most pressing global challenges.
Jamie Arrowsmith
Director, Universities UK International
Nick Hillman, Director of HEPI, said:
International students underpin the success of universities across the UK. They diversify our campuses, cross-subsidise our research and spend lots of money with UK businesses, before either going home with warm feelings about the UK or staying here and contributing to the UK economy. The number of international students has been rising fast, reflecting the attractiveness of the UK to those who want to better themselves through education, and in spite of mixed messages from policymakers. If there are to be further changes to the rules on international students, then it is vital that they are based on evidence rather than whim, so this report is designed to strengthen the existing evidence base. We hope it will be read by every candidate for every major political party in every constituency in the run up to the next election.
Nick Hillman
Director, HEPI
Linda Cowan, Managing Director of Kaplan International Pathways, said:
This third update of research on the economic benefits of international students makes the most compelling case yet for the critical role this sector plays in our economy. With international students having a range of study opportunities open to them around the world and with increasing competition from countries that unambiguously communicate their welcoming offer to attract international students, it is critical we don’t take our success for granted. International students are clear-eyed about what they are looking for in a study destination and increasingly we hear from students that employability skills and careers advice are at the top of their list. We need better data on the employment outcomes of international students, consistent policy, a strong offer, and a unified message of welcome.
Linda Cowan
Managing Director, Kaplan International Pathways
Dr Gavan Conlon, Partner at London Economics, said:
Reflecting the attractiveness of the United Kingdom as a place for undertaking higher education, the number of international students coming to the United Kingdom is an all-time high. International students put nearly 10 times more into the economy than they take out – boosting both local and national economic wellbeing. However, international students also allow 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.
Dr Gavan Conlon
Partner, London Economics
Notes to editors
- The net economic impact per student was estimated to be £125,000 per ‘typical’ EU domiciled student in the 2021/22 cohort, and £96,000 per non-EU domiciled student. In other words, every 9 EU students and every 11 non-EU students generate £1m worth of net economic impact for the UK economy over the duration of their studies.
- Aggregating across the 2021/22 cohort of first-year students, the total public cost associated with these international students and their dependants was estimated to be £4.4bn. Of this total, approximately £0.4bn is associated with supporting EU domiciled students and their dependants, with the remaining £4.0bn associated with providing public services to non-EU students and their dependants.
- On average, international students in the 2021/22 cohort make a £58m net economic contribution to the UK economy per constituency. This is equivalent to £560 per member of the resident population.
- The analysis indicates that the contribution to the UK economy of the international students in the 2021/22 cohort resident in Glasgow Central stands at approximately £292m, which is equivalent to £2,720 per member of the resident population. The other constituencies where international students make the greatest contribution to the UK economy are Holborn and St Pancras (£291m; £1,720 per resident, Sheffield Central (£273m; £1,930 per resident, Nottingham South (£271; £2,190 per resident), Edinburgh East (£268m; £2,420 per resident) and Newcastle Upon Tyne East (£264m; £2,560 per resident).
- Aggregating across the entire 2021/22 cohort of first-year students, we estimate the total economic benefits of international students to the UK economy to be approximately £41.9bn over the entire period of their studies, of which £4.3bn is generated by EU students, and £37.6bn is generated by non-EU students.
- This is the third iteration of the report. The previous two studies focussed on the years 2015/16 and 2018/19.
- Values are rounded to the nearest £0.1 billion. All estimates are presented in 2021/22 prices and discounted to reflect net present values. Totals may not sum due to rounding. Values per student are rounded to the nearest £1,000. All estimates are presented in 2021/22 prices and discounted to reflect net present values. Totals may not sum due to rounding.
- Universities UK is the collective voice of 140 universities in England, Scotland, Wales and Northern Ireland. Its mission is to create the conditions for UK universities to be the best in the world, maximising their positive impact locally, nationally and globally. Universities UK acts on behalf of universities, represented by their heads of institution.
- HEPI was established in 2002 to influence the higher education debate with evidence. It is UK-wide, independent and non-partisan, and funded by organisations and higher education institutions that want to see vibrant policy discussions.
- Kaplan International Pathways works in partnership with leading universities to offer international students a wide range of flexible study options – from university preparation programmes to full degree programmes. We welcome tens of thousands of students from more than 100 countries to our colleges and partner universities each year. Additionally, Kaplan offers language study, higher education programs, professional training and exam preparation courses. Kaplan International Pathways is part of Kaplan Inc., a diversified global education company established over 80 years ago. Kaplan is owned by Graham Holdings Company (NYSE: GHC).
- London Economics is one of Europe's leading specialist economics and policy consultancies. We advise an international client base throughout Europe and beyond on a range of issues in the field of education and labour market economics, economic and financial analysis, litigation support, policy development and evaluation, business strategy, and regulatory and competition policy. Our consultants are highly qualified economists who apply a wide range of analytical tools to tackle complex problems across the full range of policy spheres. Our approach combines the use of economic theory and sophisticated quantitative methods, including the latest insights from behavioural economics, with practical know-how ranging from commonly used market research tools to advanced experimental methods at the frontier of applied social science. We are committed to providing customer service to world-class standards and take pride in our clients’ success.