by Mahtab Uddin
Doctoral Researcher, GDI, the University of Manchester, & Assistant Professor, Economics, University of Dhaka
I still remember my first day at Manchester Piccadilly Gardens. The sun was dazzling in the sky, a quite unusual sight in Manchester during winter. This was my first time in a cosmopolitan city. I mixed well amidst the people of all colours. It felt inclusive; it felt global.
This is probably the reason why I never felt alone or an alien in my department at the Global Development Institute (GDI) at the University of Manchester. My fellow PhD students (pictured above) were from all over the world, from Malaysia to Mexico, China to Chile. The diversity in students delivered a unique opportunity to uncover new insights and ideas – or to think globally.
This is what an international talent pool does. Members think critically, enrich universities’ knowledge, and bring the world to the UK. Not only that, they contribute to the economy, boosting demand, bringing billions of pounds to the UK every year.
A notable example of how talent migration fosters innovation and technology is the US. One of the key reasons the country rose rapidly in global rankings, becoming a superpower despite being one of the world’s youngest nations, is its long-standing commitment to embracing migration. For decades, it welcomed talent from every corner of the globe and backed such openness with substantial investment in education. No country has offered more scholarships for Master’s and PhD studies, particularly in STEM fields. It’s no coincidence that the US continues to dominate the global innovation landscape.
Although we see a retreat from this tradition under the latest Trump administration, many observers warn that such restrictive immigration policies could prove self-destructive in the long run, undermining the very foundation of American scientific and economic leadership. It’s far easier – and far smarter – to attract global talent at the graduate level and retain them through research and employment pathways than to try to recruit them later in their careers. About half of the Nobel laureates affiliated with the United States arrived first as graduate students from other countries.
In contrast to the US, the UK offers fewer opportunities for international scholarships, with recent efforts to curb international student numbers through tighter visa rules, restrictions on dependents, and increasingly hostile rhetoric set to reduce such opportunities further. Indeed, this undermines the potential to attract global talent. While such measures are justified in the name of reducing net migration, they are economically short-sighted and risk damaging one of the UK’s most vital and competitive sectors: higher education.
It is a fact, not a myth, that international students are a boost
The narrative that paints them as contributors to an overburdened system overlooks a wealth of evidence demonstrating their significant net positive impact. A 2023 report by the Higher Education Policy Institute (HEPI) and Kaplan International estimated that each cohort of international students delivers a net economic benefit of £41.9 billion to the UK, a rise from £31.3 billion in 2018/19. On average, every non-EU student contributes £96,000 to the economy through tuition fees, accommodation, and spending on goods and services, after deducting the cost of public services they use. In total, this is equivalent to £58 million per constituency in the UK, or approximately £560 per citizen in 2023.
Beyond the numbers, international students are an essential lifeline for UK universities. According to the Higher Education Statistics Agency (HESA), around 23% of the sector’s income comes directly from international student fees in 2023/24. For some institutions, particularly those with strong postgraduate programmes, the proportion is even higher. These funds often cross-subsidise research and allow universities to maintain world-class faculties, labs, and libraries. With domestic tuition fees capped and public funding declining in real terms, international students are effectively helping keep UK higher education afloat.
But the impact is not limited to universities. Their consumption drives local economies, especially in university towns and cities. International students contribute to sustaining thousands of jobs in various sectors, including housing, retail, hospitality, and transportation. The Confederation of British Industry (CBI) has argued that overly restrictive measures could deter talented students from coming to the UK, reducing the number of student visas could harm sectors reliant on global talent, such as technology and research, and undermine the UK’s competitiveness in education. Restricting international students could also harm regional economies, particularly those outside London.
They also help fuel the UK’s tourism sector
Friends and family members frequently visit international students, generating demand for hotels, restaurants, transport, and attractions. According to VisitBritain, tourism generated over £127 billion (9% of the GDP) in economic value for the UK in 2023-24, and visitors linked to international students form a key part of this ecosystem. On average, each international student brings 1.5 visitors annually, who spend an estimated £2,000 per trip, contributing billions to the tourism sector.
What about dependents?
A common argument against international students is the number of dependents they bring. However, this is often misunderstood as well. Students are required to pay the full visa fees and the Immigration Health Surcharge (IHS) for every dependent. These are not negligible costs – they represent a significant financial contribution to the UK’s public purse. Moreover, dependents also contribute to the economy. They pay rent, consume goods and services, and, where eligible, join the workforce. For example, a rise in the number of dependent children would lead to increased demand for children’s clothing, groceries, and entertainment, including subscriptions to kids’ TV channels or local recreational activities. All these lead to indirect boosts to the local economies and contribute significantly to the circular economy.
Notably, many argue that international students rarely use the NHS, despite paying the Immigration Health Surcharge (IHS), as long waiting times, bureaucratic barriers, and often a lack of awareness about how to access services discourage their use. In some cases, students opt to pay out of pocket for private services or forego care altogether. To speak for myself, in the last three and a half years, I hardly had a chance to see my GP, even when suffering from Asthma or urinary infections. It has always been challenging to secure an appointment at the 8 AM lottery, as by the time my phone was answered, there were often hardly any appointments left. The best shots I ever had were appointments with a pharmacist (they called advanced practitioners) monitored by my GP.
The core problem is not demand, it is supply
Rather than blaming international students for overburdened services, the government should examine structural limitations in housing and healthcare provision. Why, in a market economy, has supply not adjusted to meet rising demand? The answer lies in policy bottlenecks. NHS staffing levels are centrally controlled, and recruitment has not kept pace with the changing population. Housing construction is similarly constrained by planning laws, regulatory delays, and limited public investment. This failure to expand public capacity is not the fault of migrants – it is a failure of governance.
The more productive path would be to harness the economic momentum that international students bring and utilise it to spur supply-side reforms, such as expanding NHS jobs, easing planning permissions for housing, and investing in local services. These measures would generate employment, improve infrastructure, and help the UK respond proactively to demographic shifts.
The key drivers of recent migration are being mischaracterised
The rise in net migration to the UK is not all due to international students. They are also significantly driven by arrivals from Ukraine and Afghanistan, under humanitarian schemes or from EU regions during Brexit, as part of the EU Settlement Scheme. As of 31 December 2024, the UK Home Office reported that approximately 6.3 million individuals had applied to the EU Settlement Scheme (EUSS) since its inception in 2018. It reflects that the crisis the UK is facing in terms of healthcare or public service delivery is not solely the fault of student immigrants; rather, the source is multifaceted.
If the UK’s goal is to manage net migration while maintaining its competitive edge, there are more effective and targeted approaches than blanket restrictions. For instance, (i) reviewing dependent visa policies using data to identify and mitigate misuse, while ensuring that genuine student families are not harmed. (ii) Aligning post-study work routes with labour market demand, ensuring international graduates contribute to sectors facing skill shortages. (iii) Tracking degree completion and post-study employment trends, focusing on addressing specific issues rather than undermining the entire system. And, (iv) Addressing housing and infrastructure pressures in student-dense areas through local investment, rather than reducing enrolment.
What is clear is that international students are not just numbers in immigration statistics. They are customers, researchers, knowledge producers, and future global leaders. Curtailing their presence undermines the UK’s soft power, shrinks its research base, and sends a signal to the world that Britain is closing its doors to global talent.
In a post-Brexit world where the UK seeks to reassert its place in the global economy, reducing the number of international students is not just bad policy – it is a strategic error. International students do not drain resources; they invest in the UK’s economy, enrich its academic institutions, and strengthen its global influence.
Policies that stifle global talent often backfire. What seems like political gain today can become economic pain tomorrow.
To borrow from John Donne:
And therefore never send to know for whom the bell tolls;
It tolls for thee.
Top image: GDI PGR students attend the institute’s annual Cultural Night
Note: This article gives the views of the author/academic featured and does not necessarily represent the views of the Global Development Institute as a whole.
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