Oxford and Cambridge are probably the only British universities that have avoided the financial problems … [+]
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For the first time, the extent of the financial burden on UK universities from the loss of tuition income from EU students has been disclosed.
Universities are expected to lose £ 62.5 million ($ 85.9 million) a year in tuition fees as a result of Brexit, according to a new analysis.
The number of European Union students in UK universities is expected to fall by more than half.
For universities already hit by the financial repercussions of the coronavirus pandemic, it is both money and students that they can barely afford to lose.
The temporary decline in foreign students as a result of travel restrictions and border closings is likely to be overshadowed by the decline in students after the UK leaves the EU, according to an analysis prepared for the Ministry of Education.
The combined effect of policy changes as a result of Brexit is likely to result in 35,000 fewer EU students enrolling at UK universities each year, according to researchers at the London School of Economics.
This represents a 57% decrease in the number of EU enrollments for UK undergraduate and postgraduate courses.
Overseas students are a lucrative source of income for universities and a way to project their reputation around the world.
While China is the single largest source of overseas students in the UK, the EU accounts for almost one in three international students in UK universities.
The study examined the impact of lower demand for higher education in the UK as a result of the elimination of tuition support for EU students as well as restrictions on the right to work in the UK after graduation and the right to admission of dependents to the UK
These losses would be partially offset by an increase in fees for EU students. However, the researchers forecast a total loss in the range of £ 42.5 to £ 66.5 million ($ 58.4 to $ 91.4 million) per year with a likely loss of £ 62.5 million ($ 85.9 million). USD) million).
However, according to the study, the effects will be felt very differently at different universities.
While the universities of Oxford and Cambridge are expected to see annual income growth of £ 3.5m (US $ 4.8m) due to the changes, other UK higher education institutions will be worse off at £ 0.6m per year ( 0.8 million USD) on average.
For a one-year cohort, that translates into a net gain of £ 8.37 million (US $ 11.50 million) for Oxford and Cambridge over the course of their studies – usually three years for a bachelor’s degree in the UK, but an average loss of £ 8.37m £ 1.60m (US $ 2.20m) for many of the newer, less research-oriented universities.
Universities in the UK are already suffering from the effects of the pandemic. A study published last year found that 13 institutions were facing bankruptcy before the government announced a support package for those at risk of bankruptcy.
While most universities were now in a stable financial position, it was important to make sure the UK remained attractive to European students, said a spokesman for Universities UK, the governing body of 140 higher education institutions.
“The projected decline in demand for EU students will be a concern for some institutions,” he said.
University heads are now looking closely at what further support the UK government could provide for higher education, said Alan Palmer, director of policy and research at MillionPlus, who represents many of the non-research universities that are expected to be hardest hit are.
“Given the uncertainty in the early days of the post-Brexit landscape, it remains to be seen what financial implications this will have on higher education,” he added.
The projected loss adds to the impact of the pandemic as lockdowns wiped out conference, catering, and lodging revenues for the past year and possibly much of this year.
Jo Grady, general secretary of the University and College Union, which represents many academic staff in higher education, said Brexit made it difficult for students and staff to study in the UK
“Not only does this leave many staff and students’ future plans in the air, but it also undermines the outward-looking, collaborative approach on which the success of our institutions is built,” she said.
The universities hardest hit are likely to be the ones least able to take the hit, she added.
“Brexit could hit the finances of newer and less research-intensive universities hardest if they are already under pressure,” she said.