UK universities are encountering severe financial challenges following recent visa restrictions for international students.
On Thursday, university leaders called for an urgent increase in domestic tuition fees to address significant budget shortfalls, as reported by AFP.
Sally Mapstone, President of Universities UK, which represents 141 higher education institutions, highlighted that the sector is “feeling the crunch” after the government imposed visa limits last year.
“There is now a stark choice before us: either we let our esteemed and globally competitive higher education system deteriorate, or we take collective action,” Mapstone said.
A recent House of Commons report revealed that UK universities generated over £50 billion in total income during the 2022-23 academic year, with a substantial portion derived from tuition fees and grants. International students, who pay higher fees than their domestic counterparts, have become a vital revenue source for these institutions.
However, the previous government, led by former Prime Minister Rishi Sunak, introduced restrictions on international student visas, including a ban on students bringing family members. This policy aimed to curb high levels of immigration. Consequently, there were 30,000 fewer international student applications in the first four months of 2024 compared to the same period in 2023, according to official figures.
University officials have expressed growing concerns about the financial repercussions of these visa restrictions. Mapstone disclosed that the sector is grappling with a £1.7 billion deficit for teaching and a £5 billion shortfall for research. There are concerns that without immediate intervention, some institutions may be forced to reduce course offerings or even close.
In response to the crisis, university leaders are urging the government to increase domestic tuition fees, which have been capped at £9,250 since 2017. Shitij Kapur, head of King’s College London, suggested that fees should be adjusted to between £12,000 and £13,000 to better reflect rising costs.
At a Universities UK conference in Reading, new Labour Education Secretary Bridget Phillipson acknowledged the sector’s financial difficulties.
“I can’t promise quick or easy fixes,” Phillipson said in a video message to the conference. “But I assure you that these issues will receive the attention and commitment they need.”
