UK (Parliament Politics Magazine) – British universities struggle financially as international student numbers drop, with higher tuition fees failing to cover rising institutional costs.
Higher education insiders warn that declining overseas visa applications may deepen the “existential threat” to some English universities, with tuition fee hikes “wiped out” by government tax increases.
What is causing financial struggles for UK universities?
English educational institutions continue to face severe financial strain, despite a tuition fee increase to £9,535, the first hike in eight years, with concerns growing over job cuts and course shutdowns.
As reported by The Guardian, the increase in employer national insurance contributions has further strained university finances, pushing many institutions into a worse condition.
While universities can charge higher fees, many will not be able to apply the increase to existing students, limiting the financial boost only to new enrollments.
A senior education department source stated, “The fee increase was welcomed, but has mostly been wiped out.”
How will UK universities cope with rising funding deficits?
Vice-chancellors are urging the government to end policies they argue are deterring overseas student enrolments. As part of an ongoing review of the international student strategy, tensions between the education department and the Home Office are expected to escalate.
Official data reveals growing worries as study visa applications dropped by 13% by the end of January compared to last year. The decline raises concerns for universities, which depend on revenue from international students to support both local student programs and research initiatives.
UK universities face annual funding gaps of £5.3bn for research and £1.7bn for teaching domestic undergraduates, and sources say these deficits are increasing annually.
Despite ongoing challenges, vice-chancellors welcome a more supportive stance from Education Secretary Bridget Phillipson, who in August released a video urging international students to study in Britain.
What does the public really think about international students in the UK?
A recent study by British Future indicated that public resistance to international student arrivals is low. 61% of respondents favour maintaining or increasing current migration levels.
The research shows that 40% of UK immigration consists of overseas students. Only 28% of the public consider them migrants. Meanwhile, just over a quarter support cutting or ending their migration.
How did British Future highlight concerns over housing and immigration?
The latest research findings also highlighted worries about housing pressure. Heather Rolfe, research director for British Future, stated,
“As the immigration debate becomes more contested and polarised, universities and those who represent the sector should not take that support for granted.”
He added,
“Universities will need to reassure the public that international recruitment does not mean that home students lose out and that local pressures – for example, on housing – are being well managed by universities and local authorities.”
What did Nick Hillman say about the financial struggles of universities?
Nick Hillman, director of the Higher Education Policy Institute think tank, warned that while the decline in visas could have been worse, he described the sector’s financial situation as “a mess.”
He argued that rising tuition fees fail to ease financial difficulties, as NIC hikes consume the extra revenue. Mr. Hillman said, “The tuition fee rise for home students does not ameliorate the challenges… Universities are actually down, not up.”
What did Harry Anderson from Universities UK International say about international students in the UK?
Harry Anderson, UUKi Deputy Director, stated,
“The UK is a top destination for international students, showcasing the strength of our higher education sector. These students not only enrich university life culturally and socially but also contribute £41.9bn annually to the UK economy.”
He acknowledged strong public backing for international students and praised the education secretary’s recent remarks but stressed the need for a consistent and supportive immigration policy.