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The hidden benefits of overseas students

by NADEEM BADSHAH

CAMPAIGNERS have welcomed a landmark report which found that international students provide a £22 billion boost to the UK economy – and have urged ministers to relax immigration rules.


The research found that a typical student from outside the EU was worth at least £102,000 to Britain in tuition fees and the tax they pay. And the total benefit of overseas students was £22.6 billion over the period of their courses.

Researchers at consultancy firm London Economics and the Higher Education Policy

Institute found that the economy benefited by around £87,000 per non-EU student from tuition fees alone. The figure was £4,000 for the amount of money spent by overseas students living in the UK.

And international students who stay and work in the UK for a decade after graduating contribute £3.2 billion in taxes. However, but a further £150 million in revenue is lost each year because of the government’s restrictions on post-graduation employment since 2012.

Labour MP Tanmanjeet Singh Dhesi told Eastern Eye: “The report very clearly demonstrates,with evidence, what many of us have been arguing for a long time now – that the benefits of overseas students to the UK economy are immense.

“In particular, the revenue generated for the nation from non-EU students makes up the lion’s share of the total economic benefits from international students – £17.5 billion

out of the £22.6 billion.

“This important fact is often overlooked when those of right-wing political persuasion

engage in the immigration debate and talk down the students’ contributions and the benefits to our country.”

The report found non-UK graduates do not take jobs from Britons as they often secure work in highly qualified areas, including economics and science, or in sectors short of

workers such as teaching and nursing.

Overseas students earn more than their British counterparts in almost every subject with significant differences in maths and economics due to their determination and knowing several languages.

In maths an overseas graduate’s median earnings after five years are £49,000 compared

with £34,000 for a British student. For economics, it is £45,000 as against £37,000.

Amit Kapadia, executive director of the Highly Skilled Migrants Forum, told Eastern Eye: “The government needs to further build measures to reward and encourage international students for choosing UK as their preferred destination instead of other countries.

“Even after the event of Britain exiting the European Union it’s very likely that the £5.1 billion generated by students from European countries for the year 2015/16 could be met and exceeded if the government ensures various schemes to encourage international

students to opt for UK as their preferred destination.

“There should be long-term measures to assure and encourage potential international

students by not just addressing issues which have been identified in previous studies but

also by ensuring absence of (or low) racial discrimination and safe (or low crime) environment and equality in job opportunities.

“These are important factors influencing the decision of international students coming

from countries such as India, China, etcetera, when deciding on their preferred

host country.”

Students from India account for the third largest group – outside those of EU countries

– in UK universities, figures in February showed.

There has been a rise in the number of students from the south Asian country and also more students of Asian origin have enrolled in British universities, according to figures from admissions service UCAS.

The number of applicants from India increased from 4,470 in 2018 to 4,690 in January

this year. China and Hong Kong are ahead of India with 15,880 and 5,100 applicants respectively.

Hollie Chandler, a senior policy analyst at the Russell Group of research universities, said: “The UK needs to improve its visa policy and ensure a welcoming environment.

“A two-year post-study work offer would enhance the UK’s appeal as a top study destination and help the UK retain talented graduates who benefit our society and economy."

Last month (March) the Department for Education (DfE) said international students will be given visa extensions of up to a year to look for work in the UK as part of a package of government measures to boost numbers of overseas students after Brexit.

The move represents a break with current policy where students are allowed to stay for only four months after graduation.

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