With new data revealing a 17% drop in international students, the UK’s university sector is bracing itself for cuts, redundancies and contraction.

New figures from the Office for National Statistics show net migration fell by 50% to 431,000 in the year to December 2024, with the decline driven in part by tighter visa rules introduced in December 2023. One key policy change – restricting dependants of international students – has resulted in an 86% (105,000) fall in study-related dependants, contributing to the decline in overseas learners choosing the UK as their study destination.

Dr Joe Marshall, CEO at non-profit organisation the National Centre for Universities and Business, underlined the importance of overseas students to the sector. He said: “International students are vital to the UK’s higher education system – they are essential to its global standing and connectivity, as well as its long-term economic health. They contribute to the internationalisation of UK universities, enabling investment in cutting-edge research, world-class facilities, and the development of a highly skilled workforce. While many leave after their studies – contributing less to long-term migration – they deliver substantial short- and medium-term benefits to institutions, regions, and the wider economy”.

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The sharp decline in international student enrolment was not only a threat to the sector’s financial sustainability, said Marshall, but it also posed a direct risk to the UK’s broader economic prospects.

“Universities are pivotal to economic growth, regional development, and talent generation. They are key drivers of investment, with businesses consistently citing the UK’s world-leading universities as a major reason for their choice to invest here,” Marshall added.

With recent policy proposals from the government, including the potential introduction of an international student levy, the situation risks further strain university finances. Many warn that this additional financial pressure is already limiting the ability of universities to operate at full capacity, jeopardising crucial research and innovation activities that are vital to the UK’s economic future.

Marshall added that the current trajectory threatened “to undermine one of our most powerful assets: our standing as a global leader in knowledge and innovation.”

In March, the University and College Union warned that as many as 10,000 university jobs could go as higher education in the UK. The UCU showed 5,361 positions were at risk, with it claiming that thousands more workers would also lose their jobs during this academic year because of a funding gap.

The sector has revealed planned cuts of £238 million, the UCU claimed.

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