UK Could Gain £40.4 Billion From International Students, Report Finds

Last Updated:October 29, 2026, 10:56 IST

According to the report, the average net economic contribution is around £100,000 per international student over the duration of their studies.

As per a report, every 10 international students generate approximately £1 million in net economic benefits for the UK. (AI Image)

International students who started higher education courses in the United Kingdom in 2024–25 are expected to contribute £40.4 billion to the UK economy over the duration of their studies, according to a new report by the Higher Education Policy Institute (HEPI) and Kaplan International Pathways.

The report, titled The Benefits and Costs of International Higher Education Students to the UK Economy, was prepared by London Economics. It estimates that 404,500 international students who began their courses in 2024–25 will generate £45.1 billion in total economic benefits, while the estimated cost to public services will be £4.7 billion. This leaves a net economic benefit of £40.4 billion.

According to the report, the average net economic contribution is around £100,000 per international student over the duration of their studies. This means every 10 international students generate approximately £1 million in net economic benefits for the UK.

The economic activity linked to this student group is also expected to support around 287,300 full-time equivalent jobs across the country.

The report considers several sources of economic activity, including university tuition fees, students’ living expenses and spending by visiting friends and family. It also accounts for wider economic effects linked to this spending.

The report highlights concerns about the falling number of international students entering UK higher education.

The number of new international students declined by around 12%, or approximately 54,500 students, between its peak in 2022–23 and 2024–25.

Researchers estimate that if student numbers in 2024–25 had remained at the 2022–23 level, the net economic contribution would have been around £2.9 billion higher for that cohort.

The findings also show that international students contribute to local economies across the UK. On average, the net economic contribution is estimated at £62 million per parliamentary constituency over the duration of the students’ studies.

The report comes amid ongoing discussions about UK immigration rules and policies affecting international students. The researchers highlight the economic importance of attracting students from overseas, while the decline in new enrolments raises questions about the potential financial impact on universities and local communities.

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What is the expected economic contribution of international students starting UK courses in 2024-25?

International students who started higher education courses in the UK in 2024-25 are expected to contribute a net economic benefit of £40.4 billion over the duration of their studies.

How much net economic benefit does a single international student bring to the UK economy?

The average net economic contribution is estimated to be around £100,000 per international student over the course of their studies, meaning every 10 students generate roughly £1 million.

How have new international student numbers changed in the UK since 2022-23?

The number of new international students declined by approximately 12%, or about 54,500 students, between the peak in 2022-23 and the 2024-25 academic year.

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