UK universities are experiencing significant financial difficulties due to a sharp decline in the number of international students applying for courses starting in the next academic year.
Recent figures from the Home Office reveal a 28% drop in applications for sponsored study visas, with only 28,200 applications received last month compared to 38,900 in June 2023. This decline is attributed to visa restrictions imposed by the previous government, which continue to affect recruitment efforts.
Most international student visa applications typically arrive over the summer, giving universities a glimmer of hope that the situation might improve by September. However, recent data reviewed by the Guardian suggests ongoing challenges for the sector.
Enroly, a service assisting international students with university enrolments, reported a 41% decline in deposits and acceptances at 31 UK universities up to the end of July. This decrease is more pronounced in postgraduate taught master’s courses, which saw a 55% drop compared to 2023, while undergraduate numbers fell by 23%.
UK Universities Face Financial Strain Due to Drop in International Student Applications
A significant policy change since January has prevented international students pursuing taught postgraduate or undergraduate degrees from bringing family members or dependents on a student visa. Jeff Williams, CEO of Enroly, noted that international student recruitment has been trending downward since the beginning of the year.
Despite this, he mentioned a slight month-to-month improvement, although the final numbers for September remain uncertain. In 2021-22, there were over 240,000 full-time international students in taught postgraduate courses and 104,000 undergraduates; current trends could result in about 150,000 fewer international students arriving in the UK this autumn.
The reliance on international tuition fees is critical for many universities, especially as tuition fees for UK students remain frozen in England. Experts warn that this combination could lead to severe financial trouble for the sector.
Mark Corver, CEO of DataHE, a higher education consultancy, pointed out that the dependency on international student fees stems from the previous government’s failure to increase domestic tuition fees from £9,250 over the past eight years. This stagnation has forced universities to seek alternative sources of income.
Corver emphasized that the upcoming A-level results in August will be crucial for universities’ financial stability. If exam grades improve, leading to an increase in domestic student enrollments, it could help offset the anticipated decline in international student numbers. The sector remains in a precarious position, with the potential for significant long-term impacts if current trends persist.
