International students pumped £41.9 billion into the UK economy in the 2021/22 academic year. That’s not revenue from tuition fees alone – it includes everything they spend while living in the UK. The number jumped from £31.3 billion in 2018/19, a 34% increase in just three years. After accounting for public service costs of £4.4 billion, the net contribution still sits at £37.4 billion.
The Money Behind Every Student
Each international student contributes differently based on where they come from. Non-EU students generate £96,000 per person over their entire study period. EU students contribute £125,000 each, though there are far fewer of them now. Break that down to simple math: every 11 non-EU students bring £1 million to the UK economy. Every 9 EU students do the same.
The 2023/24 academic year had 732,285 international students total – that’s 25% of all UK university students. Of these, only 75,490 came from the EU. The rest, 656,795 students, came from outside the EU. These numbers matter because non-EU students pay much higher fees and spend more on living costs.
Average spending patterns show international students shell out between £35,000 to £45,000 per year. That covers:
- Tuition fees ranging from £11,400 to £32,000 for undergraduates.
- Postgraduate fees between £12,000 to £45,000.
- Living costs averaging £12,000 to £15,000 annually.
- Additional spending on travel, entertainment, and visiting family.
Where The Students Come From
India overtook China as the top source country in 2023/24 with 107,500 new students. That’s nine times more Indian students than in 2017/18. China sent 98,400 new students, down from their peak but still massive. Nigeria crashed from third place with just 34,500 new students in 2023/24, down from over 72,000 the previous year.
The complete breakdown for 2024 study visas shows:
- China: 102,940 visas issued.
- India: 88,860 visas issued.
- Pakistan: 35,045 visas issued.
- Nigeria: 18,900 visas issued (massive drop from previous years).
- USA: 15,275 visas issued.
- Nepal: 12,235 visas issued.
- Bangladesh: 6,400 visas issued.
Nigeria’s numbers collapsed after the UK banned most international students from bringing family members in January 2024. Indian and Nigerian students were bringing the most dependants – in 2022, they accounted for 74% of all dependent visas. Nigeria alone had 60,200 dependent visas, India had 38,800.
Scholarships also have the potential to reduce student loan dependency, which has become a widespread issue with long-term financial implications for graduates. By diminishing the need for loans, scholarships alleviate the burden of debt, allowing students to focus on their studies rather than financial stress. As a result, they are more likely to complete their degrees on time and with better academic outcomes.
Education as UK Export Powerhouse
Education ranks as the UK’s fifth-largest service export sector. Total education exports hit £29.3 billion in 2022, up from £27.9 billion in 2021. Higher education alone contributed £23.7 billion of that total. Put that in perspective – education exports beat many traditional UK industries.
The breakdown shows:
- Higher education exports: £23.7 billion (2022).
- Transnational education: £3 billion.
- English language training: £560 million.
- Schools and further education: £1.17 billion.
- Education products and services: £3.89 billion.
The government set a target to reach £35 billion in education exports by 2030. They hit their target of 600,000 international students ten years early in 2020. But maintaining this growth faces serious headwinds.
Brexit Wiped Out EU Student Numbers
Brexit devastated EU student recruitment. Numbers crashed from 40,000 new EU undergraduates before Brexit to just 13,000 now. That’s a 67% drop. The total number of EU students fell from 152,905 in 2020/21 to 95,505 in 2022/23.
EU students now pay international fees instead of home fees. Before Brexit, they paid £9,250 per year like UK students and could get loans. Now they pay £15,000 to £38,000 per year with no loan access. The financial hit was immediate – EU students dropped from contributing £3.5 billion in 2021 to £2.4 billion in 2022.
Universities lost different amounts:
- Scotland hit hardest with 50% fewer EU students.
- London universities saw 45% drops.
- Russell Group universities offset losses by recruiting more Chinese students.
- Post-92 universities couldn’t replace lost EU students.
The UK lost £62.5 million annually just from the immediate drop in EU students. But the real loss goes deeper – the UK paid £1 billion yearly for Erasmus+ membership, seeing 40,000 UK students study abroad while hosting 140,000 EU students. Now both programs are gone.
The China Risk Problem
UK universities depend dangerously on Chinese students. They make up 26% of all international students and contribute over £4 billion annually in fees alone. Some universities get 40% of their international fee income from China. The Russell Group universities are most exposed – Chinese students increased 39% year-on-year at these institutions in 2024.
The risks are real:
- Geopolitical tensions could cut student flows overnight.
- China’s own universities are improving rapidly.
- Chinese students increasingly stay home for postgraduate study.
- 84% of Chinese graduates return to China immediately after graduation.
India looks like the replacement, but Indian students behave differently. They’re more likely to bring dependants (before the ban), more likely to stay and work after graduation, and more price-sensitive than Chinese students. They also concentrate in different subjects – business and engineering rather than the broader spread of Chinese students.
Scholarship Investment Returns
The UK runs several major scholarships for high school juniors and seniors. Chevening, the flagship program, offers about 1,650 fully-funded scholarships annually. Since 1983, it’s brought 60,000 students to the UK. The program costs roughly £26 million per year but these scholars become ambassadors for UK interests globally.
Commonwealth Scholarships add another 800 students annually. GREAT Scholarships provide partial funding to students from 14 countries. The Scottish government briefly offered 275 scholarships worth £8,000 each to EU students but killed the program after one year.
But here’s the thing – even full scholarship students contribute economically. They still spend on:
- Living costs beyond their stipend.
- Family visits and tourism.
- Additional purchases and entertainment.
- Economic activity in their local areas.
A Chevening scholar getting full tuition and £12,000 living stipend still generates economic activity worth roughly £20,000 annually through spending and multiplier effects.
The Real Economic Impact
Each international student supports 1.5 to 2 UK jobs. The total employment impact reaches roughly 200,000 jobs across:
- University staff and services.
- Accommodation and housing.
- Retail and hospitality.
- Transport and utilities.
- Professional services.
Regional impacts vary massively. London gets the most students but sees less proportional benefit. Cities like Sheffield, Newcastle, and Glasgow depend heavily on student spending. Sheffield Central constituency alone gains £2,520 per resident from international students.
Parliamentary constituencies average £58 million in benefits from international students – that’s £560 per UK citizen. Some constituencies see much higher impacts:
- Glasgow Central: £250 million.
- Sheffield Central: £198 million.
- Newcastle: £187 million.
- Nottingham: £175 million.
- Manchester: £168 million.
Future Risks and Reality Checks
The dependants ban already cut Nigerian students by 65% and impacted Indian recruitment. Study visa applications dropped 16% in mid-2024. Several universities face bankruptcy without international student fees. The government wants to reduce net migration but international students count toward those figures.
Competition is heating up:
- Australia and Canada actively poach UK students.
- Germany offers free education to international students.
- Asian universities are improving rapidly.
- The UAE and Saudi Arabia are building Western university campuses.
The UK’s selling points are weakening. Living costs in the UK average £15,000 annually, higher than most competitors. The graduate visa allowing two years of post-study work faces review and possible cuts. Mixed government messages about welcoming international students create uncertainty.
The Bottom Line
International students aren’t just statistics – they’re a £42 billion industry keeping UK universities afloat. Home students lose money for universities at £9,250 fees when teaching costs exceed £11,000. International fees of £15,000 to £45,000 provide the profit that subsidizes everything else.
Without international students:
- Multiple universities would close within months.
- Research funding would collapse.
- Regional economies would lose billions.
- The UK would lose global influence and soft power.
- Employment would drop by 200,000 jobs.
The UK achieved its 600,000 student target but keeping them is the real challenge. Every policy change, visa restriction, or negative headline costs millions in lost revenue. The education export industry proves the UK can still compete globally, but only if politicians stop treating international students as a immigration problem rather than an economic necessity.