£40.4bn Economic Impact: How International Students Power the UK Economy
Table of Content
Key Highlights:
- International students starting UK courses in 2024/25 will generate a net £40.4 billion for the economy over their studies.
- The analysis covers 404,500 international students who began higher education courses in 2024/25.
- Every 10 international students generate around £1 million in net economic benefit.
- Each UK parliamentary constituency receives an average £62 million net contribution from international students.
- The contribution is equivalent to £580 per resident.
- International students are also expected to support around 287,300 full-time equivalent jobs across the UK.
International Students Make a £40.4bn Contribution
A new analysis by HEPI and Kaplan International Pathways has highlighted the economic value of international students in the UK, showing that their contribution extends beyond universities and major student cities.
The 404,500 international students who started higher education courses in 2024/25 are expected to generate total economic benefits of £45.1 billion during their studies. After estimated public costs of £4.7 billion are taken into account, the net economic impact stands at £40.4 billion.
This means the UK gets around £100,000 in net economic impact per international student, or approximately £1 million for every 10 students.
The Impact Reaches Every UK Constituency
One of the key findings of the analysis is that the economic impact of international students is spread across the country.
The study estimates an average net contribution of £62 million per parliamentary constituency, equivalent to approximately £580 for every resident. The analysis uses detailed information on students’ term-time addresses to measure the impact at constituency level.
Measure | Finding |
|---|---|
International students starting in 2024/25 | 404,500 |
Total economic benefit | £45.1 billion |
Estimated public costs | £4.7 billion |
Net economic impact | £40.4 billion |
Average impact per constituency | £62 million |
Impact per resident | Approx. £580 |
FTE jobs supported | 287,300 |
The highest constituency-level contributions included Holborn and St Pancras at £1.2 billion, followed by Coventry South at £1.02 billion, Leeds Central and Headingley at £883 million, Cities of London and Westminster at £813 million, and Birmingham Ladywood at £811 million.
International Education Supports Jobs Too
The UK international education sector also has an impact on employment. According to the analysis, spending and economic activity linked to the 2024/25 international student group are expected to support approximately 287,300 full-time equivalent jobs across the UK during their studies.
The analysis considers the economic activity generated through tuition fees, students’ spending, visits from friends and family, and the wider impact of this spending.
A Decline in Student Numbers Has a Cost
The report also highlights the impact of falling international student numbers. International student numbers peaked at around 459,200 in 2022/23 before declining by approximately 12% over the following two academic years into 2024/25.
The analysis estimates that if 2022/23 student numbers had continued into 2024/25, the net economic impact would have been around £2.9 billion higher, equivalent to approximately 23,300 additional FTE jobs.
The findings provide a clearer picture of the international student contribution at both national and local levels, showing that the value to international education is felt across communities throughout the UK.