International students who began higher education courses in the UK in 2024/25 are expected to generate a net economic benefit of £40.4bn over the course of their studies, according to a new report.

It found the 404,500 international students will generate total economic benefits of £45.1bn over the course of their studies, while costing the public purse an estimated £4.7 bn, resulting in a benefit-to-cost ratio of 9.7 to 1.

The analysis estimates that the average net economic contribution is approximately £100,000 per international student, meaning every 10 international students creates about £1m in net economic impact for the UK economy.

The report commissioned by the Higher Education Policy Institute (HEPI) and Kaplan International Pathways, produced by London Economics, is titled ‘The benefits and costs of international higher education students to the UK economy’. 

Nathalie Jacoby-Danesh, Partner in the higher education team at UK and Ireland law firm Browne Jacobson, said: “It saddens me that, in 2026, we are still having this conversation. As a former international student myself, I was privileged to have benefited from a UK higher education and, more than that, to have had the opportunity to build my career and my life here, in the service of higher education and not-for-profit sectors that I care deeply about. 

“I hope this powerful new report will strengthen views, across the spectrum, that international students should not be regarded as a burden on the UK or a migration statistic to be managed down. They are people who choose to invest in this country, in our universities, our towns, our businesses and build long-lasting connections across time, space and industries, including in priority sectors such as digital technology, life sciences and advanced manufacturing.

“I would urge policymakers to abandon the proposed international student fee levy and protect the graduate route visa. Equally, I would encourage universities to actively pursue their international education strategy through transnational educational arrangements or strategic collaborations with international partners.”