The Education Committee has launched a new inquiry into some
universities' reliance on revenue from international student
tuition fees.
There are concerns about budget deficits at a growing number
English universities. The proportion of higher education
providers with an annual overspend increased year-on-year from 5%
in 2015, to 32% in 2020. As a result, universities are
increasingly looking to international students to cover budget
shortfalls, as they pay significantly higher fees than domestic
students.
In 2021/22 there were 679,970 overseas students at UK
universities (including undergraduate and postgraduate students),
representing around a quarter of the total student population,
and up from 469,000 four years earlier. The 2022 figure was a
record high, with the UK ranked as the third most popular
destination for international students. There have also been
media reports that some Russell Group universities now get a
minority of tuition fee revenue from domestic students.
Following recent changes to visa rules for international
students, which some are suggesting will reverse the trend of
growth witnessed over recent years, there is now greater concern
that the sector has become over-reliant on overseas
students.
Changes introduced in January 2024 included restrictions on
non-research students' entitlement to bring dependants to the UK,
and removing the possibility of switching to a work visa before
completing studies.
The Migration Advisory Committee is also currently reviewing the
system of graduate visas and is due to report in May. Universities UK has warned
that a significant number of international applicants now feel
discouraged from studying in the UK.
The inquiry will also examine the effectiveness of the
Government's 2019 International Education
Strategy, trends in the types of courses that attract more or
fewer international students, and whether a high proportion of
international students might impact availability of places for
domestic students.
Education Committee Chair MP said:
“That the UK is the third most popular destination for
international students is a source of pride and a credit to the
strength of our world class universities. The contribution that
those students bring is also hugely valued in our cities,
industries and institutions. It boosts exports and strengthens UK
soft power when students who have studied here return to their
home countries with a positive experience of study in the
UK.
“However, England's universities, including some of its elite
institutions, are facing significant challenges, with a growing
number finding themselves increasingly dependent on income from
international students to balance the books. This inquiry will
explore concerns that some universities have become too reliant
on students from abroad to shore up their balance sheets, and to
what extent this is sustainable.
“My cross-party Committee will investigate what these
challenges are likely to mean for the future of higher education
in England. We will explore how the sector, and the Government,
intend to address the potential financial risks associated with
an increased reliance on international students, as well as
looking at the overall contributions international students make
in our universities.”
Inquiry terms of reference
The Committee is inviting written evidence submissions that
respond to the terms of reference below. Experts, organisations
and individuals can submit evidence online on
the Committee's website by 24 May 2024.
· Numbers and proportions of
international students in English universities,
including:
o Changes in numbers in recent years and the reasons behind these
changes.
o The impact of international students on university
funding.
o The impact on the availability of places for domestic
students.
o How proportions of international students differ between
different courses, including breakdowns by
subject and between undergraduate and postgraduate
courses.
· How England compares to
other countries in the balance between numbers of international
and domestic students.
· What an appropriate balance
between numbers of international and domestic students should
look like and whether universities are currently achieving this
balance.
· The likely impact on
international student numbers of recent changes to student visa
conditions and any proposed changes to the Graduate Route.
· The effectiveness of the
Government's International Education Strategy launched in
2019.
