The United Kingdom has lost an estimated $3.9 billion (£2.9 billion) due to a decline in international student enrolment, according to a new report by London Economics, conducted in partnership with the Higher Education Policy Institute (HEPI) and Kaplan International Pathways. The study found that the number of international students starting their studies in the UK has fallen by approximately 54,500 (12%) over the past two years. Researchers attribute the decline largely to stricter immigration policies and changes to student visa regulations. Among the key policy changes are restrictions

The United Kingdom has lost an estimated $3.9 billion (£2.9 billion) due to a decline in international student enrolment, according to a new report by London Economics, conducted in partnership with the Higher Education Policy Institute (HEPI) and Kaplan International Pathways. The study found that the number of international students starting their studies in the UK has fallen by approximately 54,500 (12%) over the past two years. Researchers attribute the decline largely to stricter immigration policies and changes to student visa regulations. Among the key policy changes are restrictions preventing many international students from bringing family members to the UK, along with tougher visa eligibility requirements. Although more than 685,000 international students enrolled in UK institutions during the 2024–2025 academic year, the decline has already resulted in an estimated £2.9 billion ($3.9 billion) loss to the British economy. The report estimates that each international student contributes an average of £100,000 to the UK economy through tuition fees, living expenses, consumer spending, and visits by relatives and friends. While international students are expected to use around £4.7 billion in public services, including healthcare and security, they are projected to generate £45.1 billion for the UK economy during their time in the country. This represents a net economic benefit of £40.4 billion, meaning the economy gains approximately £9.70 for every £1 spent on supporting international students. As part of broader efforts to reduce immigration, the UK government has announced that graduates completing Bachelor's and Master's degrees will now be allowed to remain in the country for 18 months, down from the previous two-year post-study work period. The government has also increased the financial requirements for student visa applicants. Depending on where they study, applicants must now prove they have between £1,171 and £1,529 per month to support themselves. Rose Stephenson, Director of Policy and Advocacy at HEPI, said the findings clearly demonstrate the significant contribution international students make to the UK economy. "If the government intends to reduce international student numbers further, it should recognise the substantial economic consequences, even if such measures offer political advantages," she said. Linda Cowan, Managing Director at Kaplan International Pathways, added that global competition for international students continues to intensify. She noted that while the UK remains home to some of the world's leading universities, it must continue to project itself as a welcoming destination if it hopes to remain competitive. The report concludes that international students are not only essential to higher education but also play a vital role in supporting national economic growth. Experts warn that continued restrictions could cost the UK billions more and weaken its position in the global education market.

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