A drop in the number of international students coming to the UK has cost the country nearly £3 billion (Rs.38,956 crore) according to new estimates. The total benefit of those who began their studies in the 2024-25 academic year has been estimated at £45.1 billion, the data produced by consultancy London Economics show.

The same cohort, numbering 685,565 students, will cost the public purse just £4.7 billion to host because of extra spending on things such as healthcare or public safety — resulting in a benefit-to-cost ratio of 9.7 to 1.

Economists crunched the numbers as part of research conducted for the Higher Education Policy Institute (Hepi) and Kaplan International Pathways. It comes as international students continue to face political pressure after numerous rule changes over the past few years.

Rose Stephenson, director of policy and strategy at Hepi, believes the findings are an important intervention in the ongoing conversation around immigration. “Immigration is a top concern for voters in Britain, and it is important that the debate around immigration policy is informed by evidence. If ministers decide to further reduce international student numbers, they should be clear that there will be economic costs as well as potential political benefits. At a time when the UK is seeking stronger economic growth, those trade-offs deserve honest and open discussion.”

The study assessed “economic impact” in terms of tuition fee income, the money the students will spend on living costs, and spending by friends and family who come to visit them in the UK.

In 2024-25 the number of first-year international students more than doubled since 2006-07 but declined “substantially” since its post-pandemic peak in 2022-23, decreasing by roughly 54,500 students (12 percent) over the past two academic years as a result of changes in immigration policy, including restrictions on dependent visas.

London Economics’ research estimates that the net economic impact per student is circa £100,000 — in other words, the report continues, “every 10 international students generate £1 million worth of net economic impact for the UK economy over the duration of their studies”.

Comments Maike Halterbeck, partner at London Economics: “This new report provides updated evidence on the substantial economic value that international students bring to the UK economy — value that is spread widely across the country. However, it also demonstrates what the economy stands to lose if and when this major export sector starts to decline.”