British universities are facing financial challenges due to a decline in foreign student enrollment, spurred by restrictive visa policies and the lingering effects of Brexit.
In 2022, the UK remained a top destination for international students, second only to the United States, with nearly 760,000 foreign students.
However, stricter visa regulations have led to a decrease in student visa applications—down 5% over the last year and 16% in recent months compared to the previous year.
These policies, such as prohibiting international students from bringing family members and restricting work visa eligibility during studies, have made the UK less attractive to overseas students, leading to fewer applicationsational students, who pay significantly higher fees than domestic students, are crucial for university funding, particularly as British tuition fees have been capped since 2017.
While the Labour government recently announced a minor increase in tuition caps, it is insufficient to meet the financial needs of universities that have come to depend on higher international tuition fees to compensate for funding shortfalls.
According to Universities UK (UUK), which represents over 140 institutions, funding per student is now at its lowest level since 2004 .
Some in the sector have warned that fewer international students will further damage university finances in the UK.
Universities UK, which represents 140 institutions, said the figures showed that student recruitment “remains very challenging”, and that “the UK’s position as a top study destination is under threat”.
The director of the Higher Education Policy Institute (Hepi) think tank, Nick Hillman said the numbers “confirm our fear that the previous government’s changes have made the UK a less attractive study destination”.
Amid these challenges, universities have resorted to strategies like lowering admission standards to attract more international students, as seen at institutions like the University of York. But without policy changes to support international student mobility, UK universities may face continued financial strain, with implications for the quality of education and research funding.
