Student visa applications have fallen 16% from January to July 2024 compared to the same period last year, reflecting restrictions applied by the previous government. While this means the government is meeting its promise to cut immigration, it also threatens to plunge universities into a funding crisis.
Since the 1990s, the higher education system has expanded rapidly without accompanying increase in funding. While Germany and France spend an average of $15,900 and $13,900 per student respectively, the UK spends just $7,000. A significant increase of domestic fees, frozen at $9,250 since 2017, is not a realistic option politically.
In an effort to resolve this, the Government debuted the International Education Strategy in March 2019. It allowed students to bring dependants to work in the UK for at least two years after completing their studies. The government hoped to attract 600,000 international students to the UK by 2030, increasing education exports to £35 billion. However, this plan appears to have overperformed, with the target of 600,000 exceeded 6 years ahead of schedule. In 2023 alone, 114,000 graduate visas were issued.
Both the current Labour government and their Conservative predecessors pledged to reduce migration. Keir Starmer has promised to reduce "sky-high" migration. In January, Rishi Sunak's government increased restrictions on international students bringing family to the UK and raised salary thresholds for work visas. The Labour government does not intend to revert these changes.
These measures worked as intended, leading to decreased numbers of international students. In a May 2024 Survey, 88% of universities reported a decrease in postgraduate applications, and 62% reported a decrease in undergraduate applications from international students for the September 2024 intake compared with a year ago. Sponsored student visa applications fell by 15% in July according to the Home Office. Overall student visa applications were down by 16% compared with 2023. Visa applications for students' dependants have fallen by 81%. The true impact will not become clear until the end of August, the peak month for visa applications.
However, the falling numbers of international students pose significant problems for many universities. Earlier in 2024, university bodies, including the Russel Group, wrote to the Home Secretary expressing concern over changes, which they said might undermine the success of the UK's higher education sector and threaten its status as a leading study destination. High inflation and capped UK fees mean that a greater percentage of University revenue come from international students. Universities use the higher fees that international students pay to subsidise domestic students. Fees of non-EU students make up 20% of Universities' total income. University funding is in need of reform if the government plans to continue to restrict the applications of international students.
Without significant reform, the UK risks undermining its global standing as a top destination for higher education and jeopardiing the financial stability of its universities. The situation demands a balanced approach that ensures the sustainability of the higher education system while considering the broader economic and political implications of immigration policy.
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