Numerous universities in the United Kingdom face the threat of financial deficits, primarily attributed to a substantial decline in international students following Prime Minister Rishi Sunak’s prohibition on bringing dependants into the country.
The Home Office of the United Kingdom recently enforced a policy preventing Nigerian and other overseas students from bringing dependants via the study visa route.
The policy exemption applies only to postgraduate research or government-sponsored scholarship students.
Vivienne Stern, the chief executive of Universities UK representing over 140 universities, expressed concern over a potential “serious overcorrection” in the sector due to immigration policies deterring international students.
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Stern highlighted the impact of government rhetoric and policy changes on discouraging prospective students from studying in the UK.
Some prestigious universities, including York, have adjusted entry requirements to maintain overseas student numbers.
UK universities, relying increasingly on non-EU students to offset costs, are witnessing a significant decline in enrolments from key countries like Nigeria and India.
The freeze on domestic tuition fees, coupled with rising staff wage bills and a softening in UK student numbers, has created a challenging financial environment for universities.
Data from Enroly indicated a 37% decrease in deposit payments compared to the previous year.
A PwC analysis warned of a perfect storm, with falling international student numbers, frozen tuition fees, rising staff wage bills, and a potential decline in UK student numbers.
The financial analysis, based on 2021-22 returns for 70 Universities UK members, predicted that about 40% of universities may be in deficit in 2023-24, increasing to 19% by 2025-26.
Stern emphasized the need for interventions, including tuition fee adjustments in line with inflation, increased government teaching grants, and a stable international market with positive rhetoric and clarity on the graduate route.
Higher education minister Robert Halfon acknowledged the focus on balancing decisive action on net migration with attracting bright students to UK universities.
The situation underscores the urgent need for strategic measures to stabilize the financial health of the higher education sector, which contributes significantly to the UK economy.
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