September 5, 2024 — British universities are facing significant financial strain due to restrictions on visas for international students, prompting calls for an increase in domestic tuition fees to offset growing deficits. The concerns were highlighted on Thursday by Universities UK (UUK), which represents 141 higher education institutions across the country.
Sally Mapstone, President of UUK, expressed that all member institutions are “feeling the crunch” since the imposition of visa curbs last year. These restrictions, introduced under former Conservative Prime Minister Rishi Sunak, include bans on international students bringing their families and have been part of a broader effort to address record immigration levels.
“There is now a clear choice. We can allow our distinguished, globally competitive higher education system to slide into decline or we can act together,” Mapstone stated during a UUK conference held in Reading, west of London.
According to a House of Commons research paper, the total income of the British higher education sector for the 2022-23 academic year was just over £50 billion ($66 billion), largely derived from tuition fees and grants. International students, who typically pay higher fees than domestic students, have been a crucial revenue source for many universities. However, a significant drop in international student applications has exacerbated the sector’s financial woes. Official statistics reveal that there were 30,000 fewer applications from overseas in the first four months of 2024 compared to the same period in 2023.
The financial impact is substantial, with current deficits of £1.7 billion in teaching and £5 billion in research. Mapstone urged the government to provide “investment and support” to maintain the quality of teaching and research in British universities.
Domestic tuition fees, which were increased from £9,000 to £9,250 per year in 2017, have been frozen since then despite rising inflation. Shitij Kapur, head of King’s College London, suggested that fees should now be between £12,000 and £13,000 to address the shortfall.
In response, Bridget Phillipson, the new Labour government’s Education Secretary, acknowledged the complexity of the issues faced by universities. In a video broadcast at the conference, she stated, “I can’t promise painless or immediate resolutions. But I do promise that these issues will get the attention and the commitment they deserve.”
The situation underscores the growing tension between maintaining high educational standards and managing financial sustainability amid shifting immigration policies.
