Overseas Student Numbers
In the 2023/24 academic year, 732,285 international students were enrolled in UK higher education institutions — accounting for 23% of all students. Among them, 75,490 came from EU countries and 656,795 from outside the EU. Although this represented a 4% drop compared to the record numbers in 2022/23 — and the first decline since 2012/13 — it still stood as the second-highest total ever recorded.
Back in 2017/18, around 254,000 international students newly entered UK universities. Over the next five years, this number grew sharply, reaching a record 459,200 new entrants in 2022/23, before falling slightly to 428,200 in 2023/24.
The countries sending the most students have shifted notably in recent years.
- India became the leading source in 2023/24, with 107,500 entrants — nearly nine times more than in 2017/18.
- China, which had held the top spot for over a decade, saw its new entrants fall to 98,400 in 2023/24.
- Nigeria maintained its third position, with 34,500 entrants, despite a considerable year-on-year decline.
While student numbers dipped, signs suggest the downward trend may be slowing. Student visa grants hit a record 484,000 in 2022, then fell by 5% in 2023 and 14% in 2024. However, visa applications between December 2024 and April 2025 were higher than during the same period the previous year — suggesting a possible rebound.
Globally, the UK remains one of the top destinations for international students, ranking second behind the United States. After briefly dropping to third in 2019 when Australia overtook it, the UK reclaimed second place in 2021 and 2022. Other English-speaking destinations like Canada and New Zealand, as well as several European countries offering English-taught degrees, are also experiencing rising international enrolments.
Government Policy on International Students
The Labour government has sought to distance itself from the “mixed messaging” of previous administrations regarding international students. In July 2024, Education Secretary Bridget Phillipson reaffirmed that the government welcomes international students and recognizes their valuable contributions to universities, local communities, and the wider UK economy.
At the same time, Labour has pledged to reduce net migration, creating a delicate balance between supporting international education and meeting immigration targets — a challenge that has faced successive UK governments. Policies around post-study work rights, dependant sponsorship, and visa switching have frequently shifted as a result.
The International Education Strategy
The UK’s International Education Strategy outlines two main goals:
- Boost the value of education exports to £35 billion annually by 2030, and
- Increase the number of international students studying in UK higher education to 600,000 per year by 2030.
That enrolment target was achieved ahead of schedule in 2020/21, when international student numbers reached 605,130.
In September 2024, the Labour government announced plans to review the strategy to ensure it continues to promote UK education globally, support collaboration between policymakers and education providers, and align with national economic goals.
Brexit and Its Impact
The UK’s departure from the EU brought significant changes for European students. In 2021/22, the number of EU undergraduates accepted for study in the UK dropped by 50%, marking the first major decline since visa and finance rules changed post-Brexit. EU student numbers have continued to fall, reaching their lowest level since 1994.
From August 2021, new EU students have generally lost “home student” status, meaning they now pay international tuition fees and are ineligible for UK student loans. Those who began courses before July 2021 remain eligible for support until they graduate.
The Turing Scheme, introduced in September 2021, replaced Erasmus+ to fund UK students studying or working abroad. However, since Turing doesn’t fund incoming exchange students, critics warn it could reduce the UK’s inbound student flow and diminish cultural exchange.
Although the government stated in August 2024 that it had “no plans” to rejoin Erasmus+, a May 2025 announcement confirmed that the UK would work towards re-association with the programme as part of a broader reset in UK–EU relations.
Student Visa Rules
The Student visa route remains the main entry channel for international students at UK higher education institutions. The permitted stay depends on the course length and previous study history, with most degree-level students allowed to remain in the UK for up to five years.
A major update came in July 2021, with the launch of the Graduate Route — a post-study work visa that allows international graduates to stay in the UK for two years after completing their degree (or three years for PhD holders).
Recent Immigration Policy Changes
Under the Sunak government, several restrictions were introduced to curb net migration, including:
- Preventing international students from switching to work visas before finishing their studies.
- Limiting the right to bring dependants mainly to postgraduate research students.
The May 2025 immigration white paper proposed further adjustments, such as:
- Reducing the Graduate Route stay from two years to 18 months, and
- Adding new sponsor obligations to ensure “responsible recruitment” and genuine study intentions.
These policies aim to ensure that those staying post-graduation make a meaningful contribution to the UK economy.
Funding and University Finances
In 2023/24, UK universities received £614 million in EU research funding — about 8% of total research income — and £756 million from non-EU international sources (10% of total research income).
With domestic funding under pressure — due to tuition fee freezes, higher costs, and reduced teaching grants — many universities have increasingly relied on international tuition fees to sustain their budgets. In 2023/24, overseas students contributed £12.1 billion, making up 23% of total university income, compared to just 5% in the mid-1990s.
Because international fees are uncapped, institutions can charge significantly more than domestic rates. Yet, this dependence has raised financial stability concerns — particularly for universities heavily reliant on Chinese enrolments.
The House of Commons Public Accounts Committee (June 2022) cautioned that unrealistic assumptions about future international growth could expose universities to serious financial risks.
Additionally, the May 2025 immigration white paper proposed exploring a levy on international student fee income, which would be reinvested in the UK education and skills system. More details are expected in the 2025 Autumn Budget.
The Costs and Benefits of International Students
The UK government valued higher education exports at £21.7 billion in 2021, representing an 81% increase from 2010.
A study by London Economics estimated that students starting courses in 2021/22 would generate £41.9 billion in total economic benefits, against costs of £4.4 billion — a net gain of £37.4 billion. On average, this equals a £58 million contribution per UK parliamentary constituency, or roughly £560 per resident during the study period.
Beyond the numbers, international students enrich UK campuses with global perspectives, enhance cultural exchange, and prepare local students for global careers. However, concerns remain around English language proficiency among some students and their ability to succeed academically.
Since 2017, nearly 40% of the world’s countries have had at least one top leader who studied in the UK — a testament to British higher education’s global influence. This contributes significantly to the UK’s soft power, strengthening diplomatic, cultural, and trade ties across the world.
