British universities have historically been the standard of higher education (and not only higher education: we said England and meant Cambridge, Oxford or Eton). Studying at an English university was of high quality and expensive, and the inaccessibility of a diploma served as a kind of guarantee of quality. However, universities in pursuit of income began to attract foreign students very actively. Against the backdrop of the country's ban on raising prices for higher and secondary education for the British and the acceleration of inflation, this was, one might say, the only way to cope with the financial hole.
This could have gone on for quite a long time, and it would have continued, but the government in 2024 significantly tightened the rules for entering the United Kingdom for expats - the flow of students decreased to a miserable trickle. For the almost million-strong higher education industry, which until recently brought the economy 120-130 billion euros annually (4% of gross national income, by the way, the same amount is provided by retail trade and the "oil industry" in the North Sea!), this was a very powerful blow.
How did the trade in education originate?
The first universities appeared in England and Scotland almost a thousand years ago, very quickly they became in demand not only on the islands, but also on the other side of the English Channel.
British education was in demand in France, Holland, and in the states of the Holy Roman Empire and Scandinavia, especially since with the beginning of the Reformation, many Catholic universities were closed to Calvinists and Lutherans. As the prosperity of Europeans and the British grew, as well as the development of colonies, former and present, new universities sprang up, and startups grew around them like mushrooms after the rain — the new business took great pleasure in hiring students and teachers.
These new enterprises have become a significant help for local economies: for example, it brings ~300 million USD annually to the treasury of York, ~370 and 450 million USD to Leeds and Newcastle, respectively. New jobs have led to the modernisation of housing and public spaces, transforming English cities and making them more attractive to students and university teachers.
England's educational system is a source of pride, taking the place once occupied by the army and navy. For the British, until 1998, it was possible to study here for free, but as interest in higher education grew, funding for state-funded places decreased, and it is not surprising: since 1962, the proportion of successful applicants has increased from 4% to 53% of the total number of secondary school graduates.
The cost of tuition also rose: from a thousand pounds in 1998 to 9,250 pounds in 2018 (since then it has not been raised again). For some British families, this is unaffordable money, which has caused an increase in demand for student loans. The total cost of tuition can reach £45-50 thousand pounds, and some students are not able to return these funds to the bank in full.
But here's the problem – such an increase still does not cover the cost of tuition, and for each British student, the country's universities lose up to 3 thousand pounds annually, and they all also need dormitories, study space, laboratories, and most importantly – funding for research!
Where to get them?
Expats helped out. On average, a university earned £10-15 thousand a year from a foreigner's one-year bachelor's program, and up to £50-60 thousand on the most prestigious and expensive medical or legal programs. This was the case until the spring of 2024, when the Conservative government suddenly noticed that every student was bringing relatives with them, and their number equaled or even exceeded the number of students. The visa "tap" was tightened, banning the import of families, and the number of applications immediately fell. An additional blow to universities was the rise in the cost of visas, so many students who were going to study at British universities preferred American ones.
Thus, "defending" themselves from the relatives of students who came to stay, the authorities dealt a blow to the national education system. Now universities must cut expenditures so as not to go down the drain: these are cuts in salaries and pensions, the closure of some structural divisions, ignoring the need for routine repairs and the purchase of necessary materials - from office equipment to furniture.
But as the quality of infrastructure for students and teachers declines, an increasing number of them will be chosen by universities in other countries, primarily in the United States. It turns out to be a vicious circle, from which it is possible to break out only by returning the situation with visas to the way it was. There is a chance of this, especially since the power in London has changed, the Conservatives have been replaced by the Labour Party.
