A sharp drop in international student applications is exacerbating financial struggles for universities in England, despite the first tuition fee increase in eight years.
Higher education leaders warn that the fee hike to £9,535 for UK students has been “wiped out” by government tax increases, leaving many institutions worse off.
Employer national insurance hikes have further strained budgets, while some universities can only apply the new fees to incoming students, delaying any financial relief. Meanwhile, a 13% decline in study visa applications—largely due to restrictions on students bringing dependants—has cut a vital source of revenue.
Universities rely on overseas students’ tuition fees to subsidize both domestic courses and research, which currently face annual funding deficits of £1.7bn and £5.3bn, respectively. Vice-chancellors are now pressing the government to ease restrictions on international students, fearing long-term damage to the sector.
Despite concerns over immigration, new research shows that 61% of the public supports maintaining or increasing current levels of international student migration. However, housing pressures remain a key issue, with experts warning universities not to take public support for granted.
Nick Hillman, director of the Higher Education Policy Institute, described university finances as “a mess,” stating that the tuition fee rise has made “literally no difference” due to rising costs. Without policy changes, universities could face further course closures and staff redundancies.
