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Education

Higher Education

The international student economy of the UK

Higher Education

25/06/2009The international student economy of the UK

International students have become increasingly popular with educational institutions in the United Kingdom. Peter Orange investigates how much they contribute to the UK economy and its institutions.

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I remember fifteen years ago wondering when China would wake from its long slumber. But today there is no doubt that the great dragon of the east is wide awake. With China and many other so-called ‘developing nations’ now considered global economic powerhouses, more and more international students are flooding into the United Kingdom annually.

UK educational institutions have increasingly become magnets for internationals seeking the best education their families can afford. This is certainly the desired outcome of the British Council, which as a well-funded operation promotes Britain’s interests and reputation around the world in 110 countries and territories.

Universities and colleges in the United Kingdom now receive a high percentage of their revenue each year from international students. According to the British Council’s 2007 Global Value Report, export of UK education during 2003-2004 was estimated to be worth GBP 8,640.2 million. This figure includes spending on fees and living expenditure by students coming to the country, as well as through distance learning and UK education delivered from centres abroad.

The main education sectors of interest for international students are the following:

Higher education
This relates to all universities offering courses to undergraduates, taught postgraduates (masters) and research postgraduates.

Between 2002 and 2003 there were approximately 316, 000 international students within higher education, which is an increase of 34 percent on the previous year. There were over 51,000 non-UK EU undergraduates and nearly 26,000 visiting students. It is estimated that their annual spending, minus tuition fees contributed approximately GBP 2,700 million directly into local economies.

Further education
This relates to public sector and independent colleges offering courses for students usually aged 16 and above. They offer A-level and AS courses, as well as most 16-19 vocational qualifications. Colleges often work with local businesses in offering apprenticeships for young people as a way into employment, particularly in crafts or trades. Adults also have the opportunity to study short courses to get nationally recognised qualifications for specific roles in the workplace; these are called ‘NVQ’s – National Vocational Qualifications.

The FE sector attracts a growing number of international students including some under the age of 18. From 2003 to 2004 approximately 80,000 international students were enrolled in further education in the UK. Of these just over 19,000 were students from within the EU. Their expenditure whilst at FE colleges (incl. independent colleges) is estimated to be worth GBP 885.6 million.

University of Greenwich in Old Royal Naval College, photo Colin Gregory Palmer wikipdeia

Independent schools
This relates to the private school sector for pre-tertiary education. Secondary schools deliver GCSE’s, AS and A-level qualifications.

According to the Independent Schools Council there were just over 18, 000 international students in private schools in 2004, which accounts for GBP 314.1 million of tuition fees. An increase in students in the previous years is put down to an increase of expatriates residing in the UK.

Training
This relates to training conducted within the private sector for which there is very little data. It is unclear precisely how much is exported to internationals coming to train in the UK. However, The British Council estimates in its Global Value Report from 2007 that this sector exports around GBP 1.39 billion.

ELT education
This relates to sectors offering English language teaching courses. This kind of provision occurs in both higher and further education institutions as well as in a range of accredited and unaccredited private institutions. This sector attracts both junior and adult international students.

According to English UK, over 500,000 students every year choose to study English in Britain which is nearly 50 percent of all students who travel abroad to learn English.

During 2003-4 ELT tuition fees were worth GBP 643.2 million with students spending on average GBP455.9 million on living costs during their stay.

The figures quoted in this article show how education in the United Kingdom has become popular with internationals in recent years. But with all these grand overviews and quoting of large numbers it is important to remember that individuals and families make life-changing decisions when they choose an education.

Costs for studying in the UK for international students, especially those from outside the European Union (EU), are high compared to native students. The spending of this kind of money and distances travelled is an indication of competition for jobs and the value placed upon holding a British qualification by internationals in terms of the perceived social and professional status back in their homelands.

Peter Orange / Expatica