The financial challenges faced by universities are growing as recent immigration data shows a significant decrease in the number of international students applying to study in the UK. According to the Home Office’s latest figures for July, there was a 15% drop in sponsored student visa applications last month. This downward trend has been ongoing since the beginning of the year, following the government’s efforts to limit the number of visas issued.
From January to the end of July, the Home Office reported a 16% decrease in overall student applications compared to the same period in 2023. While universities saw a surge in international student enrollments in 2022 and 2023, admissions are expected to remain higher than pre-pandemic levels. However, the rise in inflation has reduced revenue from UK students, making universities more dependent on the higher tuition fees paid by international students and more susceptible to fluctuations.
Some institutions are anticipating a 50% decrease in new international enrollments this year, particularly in one-year postgraduate programs. Since January, new regulations have prevented most undergraduate and taught postgraduate students from bringing their dependent family members to the UK. The latest Home Office data shows a significant decline, with 13,100 dependent applications from January to July 2024 – an 81% decrease from the same period in 2023.
August typically sees the highest number of visa applications, and the Home Office has noted that it will be crucial to observe the peak in student applications in the fall to fully assess any changes this year. A survey conducted by the British Universities’ International Liaison Association found that nine out of ten institutions received fewer international applications for the upcoming autumn compared to 2023.
Recent data from the Higher Education Statistics Agency revealed that the percentage of first-class degrees awarded to undergraduates continued to decline last year. In the 2022-23 academic year, 29% of undergraduate degrees were classified as first-class honors, down from 32% in 2021-22 and 36% in 2020-21. This percentage is only slightly higher than the 28% awarded in 2018-19 before the pandemic, which led to more lenient grading for affected students.
Nick Hillman, director of the Higher Education Policy Institute, noted that the decrease in first-class degrees may make the top grade more meaningful for employers, despite almost a third of students still achieving a first. It remains to be seen whether this trend will continue in the long term or if it is a temporary fluctuation. The government’s shift in priorities may influence the focus on university grades and other aspects, potentially diverting attention from academic performance.
Furthermore, the proportion of lower second-class degrees, or 2:2s, increased to 20% after dropping to 15% in 2020-21. This fluctuation in degree classifications reflects the evolving landscape of higher education in response to various factors such as government policies and economic conditions.
