UK universities face sharper international postgraduate decline than U.S.

Traders Union
All News
Business & Wealth
Companies
UK universities face postgraduate decline

Highlights

Studyportals survey shows a 19 per cent decline in international postgraduate enrolments at UK universities for autumn 2024, compared to 13 per cent in the U.S.
Visa policy changes and tougher immigration controls cited as primary drivers for the drop, with recent rules threatening universities' visa sponsorship if over 5 per cent of student applicants are rejected.
Sector faces up to £7bn annual revenue hit as declining international enrolments exacerbate financial pressure, already causing job losses and university mergers.

Survey points to visa policy strain

As reported by Financial Times, citing Studyportals, a poll of administrators at 437 universities worldwide shows a 19 per cent reduction in new international postgraduate students enrolling at British universities this autumn for the current academic year. The survey also finds a 2 per cent fall in overseas undergraduate numbers.

By comparison, international postgraduate places fall 13 per cent in the U.S. and 3 per cent in Canada, while numbers edge up slightly in continental Europe and Asia from a low base. Of the 41 UK institutions surveyed, 79 per cent say their international postgraduate numbers are down this year, and 43 per cent report a decline in undergraduate intakes from abroad.

Universities link the UK decline mainly to tougher immigration controls. Vivienne Stern, chief executive of Universities UK, says she writes on Wednesday to the Independent Commissioner for Borders and Immigration to raise concerns about what she describes as arbitrary visa decisions by the Home Office.

Funding pressure spreads across the sector

Studyportals, which conducts the survey with NAFSA and Oxford Test of English, estimates the reduction could cost the sector up to £7bn a year in tuition fees and other revenue. Chief executive Edwin van Rest says the drop comes at a particularly difficult moment for universities and the wider UK economy because it adds to an already severe financial squeeze.

Other recent indicators broadly support the survey's findings, including lower student visa grants and weaker application interest, while official statistics on current international student numbers are expected before the end of the year. Earlier this week, a separate survey by the Chartered Association of Business Schools finds that 69 per cent of 59 UK member schools report lower international enrolments this academic year.

Recent policy changes include restrictions on family members accompanying international students, shorter post-study work periods and a planned levy on international students. New Home Office rules also threaten universities' rights to sponsor visas if more than 5 per cent of student applicants are rejected, adding to sector concern over future recruitment.

A recent government study estimates that tuition funding for most courses does not cover costs under the £9,790 annual cap backed by student loans, leaving institutions dependent on higher-fee international students to subsidise domestic tuition and research. That funding strain has already led to thousands of job losses across the sector and has triggered university mergers.

The latest update follows our earlier article on UK deficit reduction as Chancellor John Healey stuck to plans ahead of the October Budget.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.