HOW THE UK ECONOMY IS AFFECTED BY FOREIGN EDUCATION

INCEPTION:

International education is one of the UK’s main export sectors. So there is considerable interest in understanding international student mobility (Beech, 2018). Over a million international students for education currently study in the country, making it the second most popular place to study in the world.

The choice of these students to choose the UK as a study destination benefits the country in many ways. These students not only contribute to global diversity but also bring many financial benefits to local communities. There are many universities whose budgets and operations depend entirely on international student tuition fees. Not to mention that the economies of small towns are highly dependent on the earnings of foreigners.

DAILY DISBURSEMENTS:

British universities are possibly the world leaders in higher education. But this potential is not only noteworthy but is also priced higher. Higher tuition fees are not everything to consider when calculating the financial aspect of getting a renowned degree from UK universities.

Studying in the UK carries a number of costs international students have to bear from the first day they arrive in the country. Rent, food, bills, and the money required to take academic help from services like assignment help London to ace their degrees, and many other daily activities can reach maximum amounts of money. Prior to this, the university students were struggling to manage their thesis (eazyresearchwp, 2020)

THE REPORT OF HIGHER EDUCATION POLICY INSTITUTE:

The Higher Education Policy Institute presented this assessment of international students’ contribution to the UK economy in a report entitled ‘Costs and Benefits of International Students by Parliamentary Constituency. The cost of accommodation is compared with the actual number of international students and the economic return received in return, they came to know the presence of foreigners in the UK is a very potent factor contributing to the overall economy of the UK.

  • LONDON ECONOMICS FOR THE YEAR 2018-2019:

The Economics of Higher Education Costs and Benefits of International Students report for the UK showed that international students are fully funding the net economic benefit of £25.9bn. The study was compiled by London Economics and published by the Higher Education Policy Institute and Universities UK International. This report confirms that tertiary education is one of the UK’s biggest exporters.

As per an estimation, an estimated net economic impact of a “typical” EU resident student in 2018/19 was £71,000 and £102,000 for a non-EU student. So it becomes clear that higher education is one of the UK’s biggest export earners as was mentioned by HEPI director Nick Hillman. This data is also helpful for economics assignments generated by economics assignment help services, for the ease of students. The benefits are coming in all over the UK, from Land’s End to John O’Groats.

MAJOR LISTINGS OF REVENUE:

The HEPI report classifies UK financial income from international students into three listings. One is of course the tax income implemented on tuition, non-tax income, and visitants. Overall, the UK has generated a revenue of £10.7bn from international student tuition fees, while £11.3bn has come from other non-fee sources and £600m from visitor receipts.

Britain’s financial advantages varied according to nationality. An international student from a non-EU country who pays higher tuition fees and cannot access financial aid which is enjoyed by their fellow students who are the residents of EU. The irony of the fact is that these international students generally contribute more. This fact is also confirmed by a HEPI report, in 2015/16 on a comparison of profit made by non-EU students or EU students which was mentioned through their total net economic impact.

LOWER ACCOMMODATION COST:

On the other hand, the cost of accepting international students is much lower. According to Hepi, the UK budget needed £2.3 billion in 2015-2016 to accommodate international students. This spending was primarily related to student support programs, student grants, and other student-related government services. According to the report, housing costs for EU students are lower than those for non-EU students, as are social benefits.

  • COMPARISON BETWEEN EU STUDENTS AND OTHERS:

Overall, hosting EU students costs the UK economy £1.1 billion, compared with £1.2 billion spent on hosting international students from non-EU countries. However, admitting an EU student individually was more expensive than admitting an international student from outside the EU at the individual level. In fact, EU students enjoy almost the same privileges as resident students. The full cost of accommodation for non-EU international students comes from the provision of other government student services and not from student support and scholarships.

SPENDING VS REVENUE GENERATED BY THE UK:

So, if we compare the total amount spent on hosting international students with the amount of money the UK received from them, it becomes quite clear why the UK is hosting a flux of international students. It turns out that hosting international students is worth it. It is for sure a potential reason to attract international students as a potent international study destination. If one subtracts the £22.6bn earned by international students and the £2.3bn allocated to accommodate those students, one gets to have a net return of £20.3bn. In other words, for 15 European and 11 non-European students, the British economy earned £1 million.

ECONOMIC IMPACT ON CONSTITUENCIES:

The above-mentioned report not only focused on the overall economy of the UK but also keenly considers the net economic impact that international students have on every constituency in the UK. As it is a well-acknowledged fact that the financial benefits for different regions of the country vary. London, as one of the most popular destinations for study, often referred to as the world capital of higher education, has by far raised the most (£1.4 billion). Using the distribution of international students at the regional level into various constituencies and their net economic contribution, their contributions to each area averaged £31 million.

CONCLUSION:

The discussion is better to be concluded in the words of Mr. Hillman who says that without international students, some local businesses could go out of business and some of the local population will lose their jobs. The Higher Education Policy Institute, together with the education company Kaplan, wants the UK to be more positive about international students and isolate them from the wider immigration debate.

References

Beech, S. E. (2018, march 12). Adapting to change in the higher education system: international student mobility as a migration industry. Journal of Ethnic and Migration Studies 44, no. 4.

eazyresearchwp. (2020, December 29). 5 Online Educational Apps to Increase your children’s learning experience. https://eazyresearch.com/blog/5-online-educational-apps-to-increase-your-children-learning-experience/.

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