APPG Report: International Students Drive £41.9bn Boost to UK Economy, Calls to Protect Graduate Route

What Happened?

The APPG for International Students (a cross-party group of UK politicians) released a report stressing that the economic case for international students is “overwhelming” and urging the government to adopt a regional approach to supporting them.

Key Findings

• Huge Economic Impact:
  • International students contribute £41.9 billion annually to the UK.
  • For every £1 million in university revenue, £2.3–£2.5 million is generated in local economic output.
  • This supports jobs in housing, retail, healthcare, technology, and other industries.
• Regional Importance:
  • Higher education is now the largest export industry in 26 UK parliamentary constituencies.
  • It is among the top three exports in more than 100 constituencies.
  • Outside London (e.g., Manchester, Sheffield, Exeter), cutting student numbers would severely hurt local prosperity.
• Graduate Route Visa:
  • The APPG recommends keeping the Graduate Route (2-year post-study work visa) unchanged.
  • Cutting it to 18 months (as proposed in the immigration white paper) would make it harder for employers to provide meaningful work opportunities.

What They Recommend

1. Regional Strategies: Each devolved region (Scotland, Wales, Northern Ireland, English regions) should have its own international education strategy aligned with the national one.
2. Better Data: Government should provide detailed regional data on students, dependants, and post-study work.
3. Collaboration: Universities, colleges, and schools should work together to maximise student impact.
4. Keep Graduate Route: Protect the full 2 years to support employers and graduates.
5. Expand Below-Degree Education: Revive international education at sub-degree level (e.g., vocational/diploma courses) to meet regional skills shortages.

Why It Matters

• International students do much more than study: they rent houses, shop locally, volunteer, and often stay to fill critical skills gaps in healthcare, technology, and essential services.
• If policies make it harder for students to come, London may cope, but smaller cities and regions will face major economic and social losses.
• The UK’s competitiveness in global education and skilled migration depends on keeping international students welcome.

In short: The report makes it clear that international students are vital not just for universities, but for the whole UK economy — especially outside London. Cutting routes like the Graduate Route would harm regional growth, jobs, and skills.

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