Whether it’s about changes to the BCA framework or debates around immigration, international students have been a frequent feature in the UK headlines.
Alongside the Higher Education Policy Institute (HEPI), we commissioned a report to better understand the true economic impact international students have on the UK. That report revealed something important.
International students don’t only get a world-class education in the UK. They make a huge positive contribution to the universities, the cities and the communities they become part of.
Here’s how every international student leaves an impact that extends far beyond the classroom.
Highlights of the report
The report studied the impact of international students who started their studies in the 2024/25 academic year. Here is some of what it found.
£40.4 billion
The net economic benefit generated by international students to the UK economy
£1 million
Every 10 international students generate an estimated £1 million in net economic benefit.
£62 million
Average benefit per parliamentary constituency
Every region of the UK benefits
Every year, hundreds of thousands of students from around the world choose to study in the UK, benefiting both universities and the wider economy, countrywide.
While this brings £10.9 billion in tuition fee income for universities, fees are only part of the picture. Students become a part of their communities. They rent homes, shop in local businesses, use public transport, and visit cafés, restaurants and cultural venues. Together, this spending supports local businesses, creates jobs and helps communities all over the country to thrive.
In fact, the report estimates that through international students’ active participation in their communities, tuition fee income generates a wider economic benefit of £22 billion. When all of the contributions international students make are taken into account — including tuition fees, everyday spending, visitor spending and longer-term economic effects — the report estimates a positive financial impact of £45.1 billion generated for the whole UK in the duration of their studies.
Deducting the estimated cost of international students to the UK, which is currently around £4.7 billion, the net economic benefit is £40.4 billion, implying a benefit-to-cost ratio of 9.7.
It’s important to note that this impact is seen across the whole UK, throughout every nation and region, rather than the benefit being concentrated in only big university cities. In fact, the average benefit per parliamentary constituency stands at around £62 million.
Cultural contributions
While it’s relatively easy to measure economic contributions, the cultural impact international students make is harder to quantify, as the authors of the report note. However, it’s important to touch upon the ways in which they enrich their communities too.
As educators, we’ve seen this up close.
International students help build cultural understanding by exposing the people around them to views and traditions they may otherwise never experience, and reminding us that we usually have more in common than what divides us. And that isn’t just true of international versus domestic students, but of the students of all cultures and nationalities who come together in colleges and universities across the nation.
In turn, the vibrant, diverse campus communities this creates help to create well-rounded, successful graduates by preparing students for an increasingly global workplace, where working for the same company no longer means working from the same country.
However, these cultural benefits extend far past university campuses. Many international students retain ties with the UK, either through friendships, work experiences or simply becoming part of their university’s alumni network. This helps to maintain the UK’s presence on the global stage, and, as the report notes, boosts the country’s soft power.
However, these benefits are at risk. According to IHE, the so-called ‘Big Four’ international study destinations of the UK, the USA, Australia and Canada is fast becoming the Big 14, as students increasingly explore an education in non-anglophone countries.
The data backs this up — international student numbers in the UK have declined by 12% since the 2022/23 academic year.
That’s why it’s crucial that we recognise the immense benefits international students bring to the UK, and ensure students from around the world feel like they belong and can thrive here.
Partner with Kaplan and support international students in the UK
Kaplan works with people and groups from across the higher education industry to enable international students to gain a world-class education in the UK. To find out more about working with us, select the appropriate option below:
