International students starting UK higher education in 2024-25 are expected to generate £40.4 billion in net economic benefit over their studies. The report was published July 9, 2026.
The cohort’s estimated benefits exceed its public costs
The estimate covers four hundred and four thousand five hundred international students who began higher education courses across the UK in the 2024-25 academic year. Their studies are expected to generate £45.1 billion in economic benefits, while estimated public costs stand at £4.7 billion. The figures compare the benefits associated with that student cohort with the public costs attributed to it.¹²
Across the duration of their studies, every ten international students generate approximately £1 million in net economic benefits. The estimated benefit-to-cost ratio is 9.7 to 1, and the average net contribution per student is around £100,000. These measures express the estimate at three scales: a group of students, the relationship between benefits and costs, and the average contribution per student.¹²
The economic activity generated by the 2024-25 cohort is also estimated to support approximately two hundred eighty-seven thousand three hundred full-time equivalent jobs across the UK. The estimate counts jobs on a full-time-equivalent basis, rather than describing the number of students or the number of separate employers. It links the same cohort’s economic activity to employment across the country.¹²
Maike Halterbeck, partner at London Economics, also referred to key new policy changes coming into force, including a potential new international student fee levy.¹²
Fewer new students reduce the cohort’s estimated contribution
The number of new international students had fallen by approximately fifty-four thousand five hundred, or 12%, by 2024-25. The comparison is with the 2022-23 level. Maike Halterbeck, partner at London Economics, also referred to key new policy changes coming into force, including a potential new international student fee levy.¹²
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Read More →The estimate also compares the 2024-25 cohort with a counterfactual: had student numbers remained at their 2022-23 level, the cohort’s net economic contribution would have been around £2.9 billion higher. This is a comparison with a stated alternative student-number level, rather than a separate estimate of the contribution made by another cohort.¹²
After adjusting for inflation, the overall economic contribution grew by £4.1 billion between the 2021-22 and 2024-25 cohorts. The comparison tracks the net economic impact across those two cohorts in inflation-adjusted terms. It measures change over time after accounting for inflation, rather than comparing the figures as unadjusted amounts.¹²
The estimate also measures value by constituency
Over the duration of their studies, international students are estimated to contribute an average of £62 million in net economic value to each UK parliamentary constituency. This is an average across constituencies, expressed as net value over the period students study. The figure describes the estimated contribution at constituency level, alongside the nationwide total for the cohort.¹²
The constituency estimate is equivalent to approximately £580 per resident. That figure expresses the estimated contribution in per-resident terms, while the £62 million figure measures average net value for each parliamentary constituency. Both measures cover international students’ contribution over the duration of their studies.¹²
The figures on total benefits, public costs, jobs and constituency-level value all relate to the estimated economic contribution of international students who started UK higher education courses in 2024-25.¹²
The Higher Education Policy Institute (HEPI) and Kaplan International Pathways produced the report, with London Economics conducting the study. The publication date was July 9, 2026. The figures on total benefits, public costs, jobs and constituency-level value all relate to the estimated economic contribution of international students who started UK higher education courses in 2024-25.¹²
HEPI and London Economics discuss policy and student numbers
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Read More →Rose Stephenson, director of policy and strategy at HEPI, said the findings highlighted the economic implications of policies aimed at reducing international student numbers. Her comment connected the study’s estimates with decisions that affect the number of international students. The findings put an economic value on the cohort while also setting out estimated public costs.¹²
Rose Stephenson, director of policy and strategy at HEPI, also said immigration is a top concern for voters in Britain. She said debate around immigration policy should be informed by evidence. Her remarks addressed the role of evidence in that debate and came alongside the report’s estimates of student-related benefits, costs and net economic value.¹²
Maike Halterbeck, partner at London Economics, warned that the number of international first-year students had decreased since 2022-23. Her warning also referred to key new policy changes coming into force, including the potential new international student fee levy. The report’s estimate of a lower student count and Halterbeck’s comments both address the change in international student numbers.¹²
Weigh UK study against policy shifts
If you are considering a UK degree, the 2024-25 cohort's average net contribution of £100,000 per student shows the economic weight you carry, yet new international student numbers fell by 54,500, or 12%, since 2022-23. That decline, tied to policy changes like a potential fee levy, means your decision involves more than course quality. A lower student count reduces the cohort's contribution by £2.9 billion, so universities may adjust offerings or support. Factor in this policy risk when comparing UK options against other destinations.¹²
For those working in UK sectors serving students, each 10 international students generate about £1 million in net benefits, and the 2024-25 cohort supports 287,300 full-time equivalent jobs.
For those working in UK sectors serving students, each 10 international students generate about £1 million in net benefits, and the 2024-25 cohort supports 287,300 full-time equivalent jobs. A continued decline in student numbers, as flagged by London Economics, could reduce demand in education-adjacent roles. When negotiating pay or planning job security, recognize that your role's stability may tie to student inflows. The benefit-to-cost ratio of 9.7 to 1 also suggests public support for students remains strong, but policy direction matters more than past growth.¹²
Sources
Written by Career Ahead AI. AI can make mistakes, so verify key facts. Report errors to support@careeraheadonline.com
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