Of the total, transnational education exports were valued at £2.4bn.

The share of the total attributed to higher education was 77.9% at £21.74bn and education products and services at £2.15bn. Exports related to independent schools was £920 million, ELT £46m and further education £24m.

Photo: UK gov’t

The £21.7bn figure for higher education underlines the “huge contribution international students make to the UK”, Jamie Arrowsmith, director of Universities UK International, said.

“This is a huge achievement, and one that will no doubt be welcomed by the government,” he noted.

The figures show that education and TNE export revenue has grown by 75.72% (or £12.02bn in current prices) since 2010.

Education related exports have grown by 72.23%, while TNE activity has grown at a “significantly faster” rate of 123.90% over the time, albeit from a lower base on £1.07bn in 2010.

The 2021 total was a rise of 6.23% on 2020 figures, with the year marking the third consecutive year of TNE activity growth since a decrease of 0.39% between 2017 and 2018.

TNE is being promoted as a way for the sector to meet students closer to home and to raise exports without relying on visa issuance and costs of student mobility.

“However, the attractiveness of the UK as a study destination is under threat,” Arrowsmith continued.

“The number of international students choosing the UK has started to fall, with the number of study visas issued down 5.5% in 2023.

“The government’s announcement that the Graduate route will be reviewed has added to a challenging recruitment environment, creating a great deal of uncertainty for students and universities alike.”

“However, the attractiveness of the UK as a study destination is under threat”

Close to half of prospective students say they would reconsider their study destination if the UK post-study work offer was curtailed, he added.

“Universities are key to driving growth, innovation and prosperity. Eroding our attractiveness to international students will only undermine the contribution that our institutions – and international students – make to communities across the whole of the UK.”

In 2021, income generated from Education Products and Services and TNE activity is broadly similar, at £2.15bn and £2.4bn, respectively.

Photo: UK gov’t

With Labour’s proposal to remove the charitable status of independent schools in the UK and make them pay VAT, there have been suggestions that they could choose to open more branch or sister schools in lucrative markets overseas.

However, it remains unclear how independent schools will manage increased costs if the party wins the next election in the UK.

Both ELT and FE (which accounts only for non-EU students) have seen falls in their share of exports.

While in 2011, ELT made up 11.8% of education exports at £2bn, a decade later in 2021, it was worth 1.7%, valued at £46m – at the height of an incredibly difficult market, given the Covid-19 pandemic.

However, even prior to the pandemic in 2019, ELT’s share had declined to 7%, where it accounted for £1.8bn – partially recovering from the 2016 low of £1.55bn.

In 2021, tuition fee income and living expenditure from non-EU students made up £15.94 billion in exports and pathway providers created £450 million in exports.

The UK’s international education strategy has the aim to grow the industry’s economic impact to £35bn annually by 2030.