United Kingdom sees £40.4bn economic boost from international students

An analysis released by ICEF Monitor, based on research from London Economics and commissioned by the Higher Education Policy Institute and Kaplan International Pathways, estimates that the 685,565 international students enrolled in UK higher education for 2024/25 generated a net economic impact of £40.4 billion over the duration of their studies. This translates to roughly £100,000 per student and an average benefit of £580 per UK resident each year.

Student commencements fell 12 % from the 2022/23 peak, a decline that the report says cost the UK economy about £2.9 billion. While the financial contribution is substantial, the benefits are unevenly distributed across regions, with metropolitan areas such as London, Manchester and Edinburgh receiving larger boosts than smaller towns.

HEPI Director Rose Stephenson warned that any policy move to further reduce international student numbers should consider the economic trade‑offs alongside political objectives, noting the sector’s role in sustaining university finances and local employment.