The economic impact of international students in the UK

by Stacey Dingwall

A key concern following Brexit has been the status of international students (and academics) in the UK. Going into the general election, Theresa May has declined calls from universities – and some of her most senior colleagues – to remove students from her government’s target to cut migration by “tens of thousands”.

International students in the UK

In 2014-15, 437,000 students came from overseas to study in the UK, making up 19% of all UK university registrations that year. In February, the Office for National Statistics released net migration statistics which showed that long-term immigration to the UK fell by a “statistically significant” 23% to 134,000 in the year ending September 2016 – the lowest estimate recorded in almost 15 years. The number of international students coming to study in the UK accounted for much of this decrease, at 41,000. The majority of this figure was made up by students from non-EU countries (31,000).

In January, HESA released figures on students enrolled in higher education in 2015-16 which indicated that the number of students coming to the UK from EU member states had increased by 2%. These figures were collected before Brexit, however, so it will be next year’s edition before any impact, if at all, can be identified. Figures from UCAS published at the end of March, however, indicate a 6% decrease in the number of university applications from EU students on the previous year.

The ONS migration figures also showed that students from Asian countries made up 68% of the estimated 87,000 non-EU citizens who came to study in the UK during that year. While the UK remains the second most popular destination for international students in the world, after the USA, this is a fall of 23,000 on the previous year.

An economic impact worth billions

So why are some of Mrs May’s most senior colleagues rebelling against her decision to maintain international students within her migration reduction quota? One major reason is clearly the economic benefits generated for the country by the students. In March this year, research conducted by Oxford Economics for Universities UK suggested that in 2014-15, on- and off-campus spending by international students, and their visitors, generated a knock-on impact worth £25.8 billion in gross output to the UK economy. The 2014-15 international student cohort accounted for £10.8 billion of UK export earnings that year.

Tuition fees account for £4.8 billion of the total figure. The research also found that spending by international students supported over 200,000 jobs in UK university towns and cities and that the economic activity and employment sustained by international students’ off campus spending generated £1 billion in tax revenues.

Conservative rebellion and public opinion

Conservative MP Anna Soubry has pointed out that the economic contribution of international students continues even after they have completed their studies, in the form of “goodwill towards our country”, which “ often results in business deals as well as improved international relations and understanding”. It would appear that the public shares her sentiments: a poll conducted by Comres following the publication of Universities UK’s research found that 74% of those asked would like to see the number of international students in the UK either maintained or increased, after being told of the economic benefits they generate.

Despite this, the Prime Minister’s only concession so far has been to allow the newly created Office for Students to publish separate figures on overseas students, although they will still be recorded as part of the overall migration figures.  It has been suggested that a potential Conservative backbench rebellion over the government’s decision to remove the House of Lords’ amendment to the Higher Education and Research Bill on the issue was only defused by the decision to call a snap election – although MPs from both the Conservative and opposition parties have vowed to continue to fight the government’s stance. The Independent has launched a campaign – Drop the Target – supported by Soubry, which is demanding answers from the government on why they are continuing with the policy, which they argue is economically and socially damaging to the country.


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Why do more girls than boys go on to higher education?

Metal signpost indicating directions of three world famous universities - Harvard / Cambridge / Oxford

by Stacey Dingwall

In February of this year, ministerial guidance was issued to the Office for Fair Access (OFFA) on doing more to widen the participation of disadvantaged groups in higher education. This was accompanied by the issuing of new access agreement guidance to universities and colleges which, for the first time, specified that they should be doing more to widen access among white men from economically disadvantaged groups.

The new guidance came after Prime Minister David Cameron raised concerns about a lack of diversity in the country’s higher education sector in an article for the Sunday Times in January. While David Cameron’s main criticism was of the lack of students from ethnic minority backgrounds being admitted to elite universities like Oxford, he also noted that “white British men from poor backgrounds are five times less likely to go into higher education than others”.

What does the evidence say?

The Prime Minister’s statement about the gender gap is backed up by two key sources. In their 2015 End of Cycle report, the Universities and Colleges Admissions Service (UCAS) reported that, while entry rates for both male and female students increased, female entry rates increased three times faster than those of males. At 35.4%, the admission rate for 18 year-old female students was 9.2 percentage points higher than male students, making them 35% (proportionally) more likely to attend university. This equates to 36,000 fewer young men than women entering higher education each year and is the widest gap yet recorded by UCAS – in 2007, woman were 27% more likely to attend university. Furthermore, the report notes that female students from the most disadvantaged areas were 51% more likely than their male peers to enter higher education in 2015. Also highlighted is that while female students across all ethnic groups are more likely to attend university than males, the gap is significantly smaller than that between white students: the next greatest gap is between male and female black students, at a ratio of 1.4. This gap has also narrowed since 2006.

In July of last year, the Sutton Trust’s Independent Commission on Fees published its final report. The Commission was set up in 2011 with the aim of analysing the effect of increased tuition fees on students. While the report found that the number of students applying to university had not been significantly impacted by the increase, it did find that certain groups had been adversely affected. These groups included male students from disadvantaged areas: the report suggested that they are 48% less likely to enter higher education than female students in the same circumstances. The Commission also found that this gap is widening rather than narrowing, indicating that there are areas of the country in which males are facing particular cultural challenges, which could result in “the entrenchment of low income and lack of opportunity”.

Why does this gender gap exist?

The Commission’s findings were widely reported in the press at the time. The key question: why has this happened? Analysis of last year’s GCSE results in England found that the gender gap between boys and girls is at its narrowest in decades, and male pupils’ A-level results are also only slightly below the female average. So why are so many male students choosing to end their educational careers at this stage?

According to Mary Curnock Cook, the chief executive of UCAS, the potential of these students is “somehow being let down by the school system”. Cook’s argument suggests that schools are not doing enough to adequately prepare and inspire their male students to continue their education after school. Brian Lightman, of the Association of School and College Leaders, however, has taken an opposing stance on this, and suggests that the narrowing of the attainment gap between male and female pupils can in fact be attributed to schools more closely monitoring the performance of boys. He also believes that changing the focus of assessment from coursework to more exams has in fact resulted in the system now being in favour of male pupils.

The impact of the introduction of tuition fees must also be acknowledged. Speaking to the Guardian in March of this year, male pupils at a school in Ipswich where double the national average of pupils are in receipt of pupil premium funding expressed their unwillingness to enter into years of substantial debt for a course where there is no guarantee of a job at the end. This sentiment perhaps explains why the number of students taking up paid apprenticeships increased by 63.5% between 2010 and 2011. A different group of students from south London also raised the issue of social class. A lot of these boys would be the first in their families to attend university. Their admissions of not wanting to stand out academically for fear of what others may think, or seeming like an “outsider’ reveal the impact that growing up in a disadvantaged area can have on aspiration.

Others suggest that the problem lies in the structure of the post-compulsory education system. Courses in which female students have traditionally dominated, such as fashion and beauty, are increasingly being changed from college courses to three-year undergraduate courses, while qualifications for bricklaying and plumbing continue to be studied at further education and apprenticeship level. Recent years have also seen a focus on campaigns to try and encourage more female students to study more science, technology, engineering and maths (STEM) -related courses, for example, without equivalent targeting of male pupils.

What is being done to reduce the gap?

Following the guidance issued to the OFFA, universities minister Jo Johnson announced that the government had also asked universities to move towards a name-blind admissions system by 2017, and would introduce legislation to scrutinise the process in order to reveal where offer rates for the poorest students were particularly low. Johnson explained that the guidance asks universities, in return for the access agreements that allow them to charge fees up to the maximum of £9,000, to focus more strategically on groups, such as white British boys, with the lowest participation rates by “spending smarter” and focusing their outreach activities where they are most needed.

The answer, it would seem, is for all stakeholders to “do more”. However, despite the government setting a target to double the amount of poorer pupils admitted to university, a specific campaign aimed at narrowing the divide has yet to be announced. It could be argued that placing the onus on universities to increase the number of admissions of white male students is the wrong answer – some, like Tony Sewell, former teacher and CEO of education charity Generating Genius, argue that this is a problem that needs to be addressed at a much earlier stage, as the gap shows signs of developing from primary level.

Overall, it would appear that addressing issues around social class in the system is key to stopping the divide from increasing any further. While Oxford University rebutted the Prime Minister’s assertion that it did not do enough to attract pupils from all walks of life, the figures speak for themselves: the most advantaged students are still 6.8 times more likely to go to the most elite universities than disadvantaged students. The Social Mobility and Child Poverty Commission regularly reports on a growing social divide in the country, including a system which continues to grant access to the elite universities according to family background rather than aptitude and ability. As the Commission’s latest state of the nation report notes, there is little chance of the government meeting its target until outreach activity becomes more focused on the areas where access is particularly low.