The number of students enrolling in UK universities has fallen for the first time in ten years, with international student numbers dropping by 7%, according to the Higher Education Statistics Agency (HESA).
Postgraduate taught courses saw an even sharper decline, with non-EU enrolments down by 10%.
This decline is adding to the financial strain on universities, particularly in Scotland, where one institution—Dundee University—could reportedly run out of cash by June.
The official figures for the 2023-24 academic year confirm what many in the sector had feared: UK universities are attracting fewer international students.
The hardest-hit institution appears to be Dundee University, which has seen a 27% drop in overseas students, falling from 4,570 to 3,335.
The decline comes amid a wider financial crisis, with the university facing a £35 million deficit and planning to cut 632 jobs—one in five of its workforce.
A BBC investigation found that Scottish universities collectively lost more than 10,000 international students last year. This, combined with growing financial pressures, is sparking concerns about the long-term stability of the sector.
The situation at Dundee University was thrust into the spotlight during a dramatic session in the Scottish Parliament on 19 March. Members of the Scottish Parliament (MSPs) grilled interim Principal Professor Shane O’Neill and acting Chair of Court Tricia Bey about the institution’s financial troubles.
Bey warned that without support from the Scottish Funding Council, the university could run out of cash by the end of June. She also announced an independent investigation, led by Professor Pamela Gillies, into how the financial crisis unfolded.
O’Neill told MSPs that financial reporting had been “misleading” and suggested previous leadership had failed to acknowledge the severity of the crisis. He also revealed that “dissent wasn’t welcomed” in the university’s upper management.
The financial instability is not limited to Scotland. In England, the Office for Students (OfS) has warned that the risk of a major university going bankrupt is rising.
The regulator has modelled a £3.4 billion decline in net income across the sector by 2025-26, driven by lower student recruitment and rising costs, including higher national insurance contributions.
A December 2024 OfS report stated that financial risks were “escalating” across the sector and that universities’ financial health was at the “most pessimistic end” of projections.
Despite the overall decline, enrolment figures vary by country. HESA data shows that new student numbers from Nigeria fell by 36%, while Indian enrolments dropped by 15% and Chinese enrolments by 4%. However, there was an increase in students from Nepal (up 70%), Pakistan (up 31%), and Saudi Arabia (up 20%).
The decline in international student numbers is being attributed to a combination of factors, including UK government policies aimed at reducing migration. Changes to student visa rules, particularly restrictions on dependants for postgraduate taught students, have made studying in the UK less attractive for many.
While UK-based student numbers have fallen, transnational education (TNE) is on the rise. The number of students studying for UK degrees overseas grew by 8%, reaching 621,065 in 2023-24.
Experts say that while the drop in international students is concerning, it does not fully explain the financial difficulties facing UK universities.
Dave Amor, a UK-China higher education analyst, pointed out that 2022-23 was a record year for UK university revenue, and the latest student numbers are not significantly lower. This raises questions about how so many institutions have found themselves in financial distress.
Some in the sector remain cautiously optimistic. Mark Ovens of Studyportals, an education choice platform, noted that while the HESA data reflects past trends, forward-looking indicators suggest renewed interest in UK universities, particularly as competitors like the US, Australia, and Canada lose market share.
However, the immediate challenges remain. With financial pressures mounting and international enrolments in flux, UK universities face an uncertain future.
