For the first time in a decade, the number of international students in the United Kingdom has declined, with a 7% drop in overall enrolments, according to official data from the Higher Education Statistics Agency (HESA). The decline includes a 10% decrease in postgraduate taught students from outside the European Union. While the fall in student numbers is significant, experts argue that it does not fully explain the financial troubles some UK universities are facing. Dundee University in Scotland, in particular, is grappling with a severe financial crisis, with major job cuts and potential insolvency looming.
The Struggles of UK Universities
The latest HESA data for the 2023-24 academic year confirms a sharp decline in international student enrolments, marking the first drop in a decade. According to the statistics, the overall student population in UK higher education dropped by 1%, from 2,937,155 to 2,904,425 students. International students, who make up a significant portion of the UK’s university finances, were especially impacted. The number of international students fell by 7%, with postgraduate enrolments from non-EU countries dropping by 10%. This downturn has sparked concerns about the financial sustainability of many universities.
Dundee University’s Crisis
Dundee University, one of the institutions hardest hit by this decline, is facing a financial crisis of its own. The university has lost 27% of its international students, from 4,570 to just 3,335. This dramatic drop is compounded by a £35 million financial shortfall and a planned reduction of 632 jobs—around 20% of its workforce. In a session held at the Scottish Parliament on March 19, 2025, Dundee’s interim leadership was questioned about the university’s sudden financial difficulties. Interim Principal and Vice-Chancellor Professor Shane O’Neill confirmed that without support from the Scottish Funding Council, Dundee would run out of cash by June.
Financial Mismanagement Allegations
The financial woes at Dundee University have raised questions about the management of the institution. Professor O’Neill and the acting chair of Dundee’s court, Tricia Bey, revealed in the Scottish Parliament that they were launching an independent inquiry into the university’s financial troubles. Bey indicated that the investigation would focus on whether key financial information had been withheld from the governing body. O’Neill further suggested that some senior figures at the university had been under the impression that the institution would break even, only to realize the severity of the situation later in 2024.
Dundee’s management came under fire during the session for a lack of transparency and accountability. O’Neill acknowledged that the previous leadership had allowed dissent to be stifled, further exacerbating the crisis. While no criminal activity was suspected, the interim leaders admitted that gaps in leadership competence had contributed to the current financial difficulties.
Impact on Staff and Union Action
The university’s financial troubles have not only affected students but also its staff. Unionized employees at Dundee have gone on strike in response to the proposed job cuts. The University and College Union (UCU) has criticized the university’s management for what they describe as “egregious management failure.” This strike action echoes concerns at other Scottish universities, such as Edinburgh University, where management is attempting to make significant cuts as well.
A Wider Crisis in UK Higher Education
Dundee University’s situation is not unique. Across the UK, universities are facing financial pressure, exacerbated by the 7% drop in international student enrolments. While the decline in overseas students cannot be solely blamed for the financial difficulties, it has certainly played a role. Additionally, financial difficulties are compounded by broader trends such as rising operational costs and changes in government policies.
The UK’s higher education regulator, the Office for Students (OfS), has warned that the financial strain in the sector is expected to worsen. Projections indicate that UK universities could face a £3.4 billion drop in net income by 2025-26. This alarming figure stems from lower-than-expected student recruitment and rising costs, particularly the increase in national insurance contributions for employers.
Declining Numbers from Key International Markets
The HESA data reveals that the biggest decline in international student enrolments has come from major markets like Nigeria and China. The number of new entrants from Nigeria fell by 36%, and enrolments from China dropped by 4%. Although some markets saw growth, such as Nepal (up by 70%) and Pakistan (up by 31%), the overall trend suggests a decline in demand for UK higher education from traditional sources.
The decrease in international student numbers has been attributed to various factors, including the UK’s stricter migration policies. Changes such as the ban on postgraduate taught students bringing dependents and the uncertainty surrounding the Graduate Route work visa have created challenges for universities in attracting international talent. The policy shift, which came into effect in January 2024, has had a noticeable impact on student recruitment, particularly from markets like India and Nigeria.
Can UK Universities Recover?
Despite the challenges, there are some positive signs for the UK higher education sector. The rise of Transnational Education (TNE)—where students study for UK qualifications overseas—has helped offset some of the losses. In fact, the number of TNE students studying abroad for UK degrees rose by 8% in 2023-24. This trend reflects the increasing demand for UK qualifications outside of the country and may provide a long-term solution to the sector’s financial troubles.
Experts like Dave Amor, a UK-China higher education specialist, argue that while the numbers may seem concerning, they do not fully explain the financial difficulties universities are facing. Amor points out that 2022-23 was a record year for revenue in UK higher education, and while there will always be fluctuations, the significant financial strain suggests deeper issues within the sector.
The decline in international students, coupled with poor financial management and shifting government policies, has created a perfect storm for many UK universities. While institutions like Dundee University are struggling to stay afloat, there is hope that emerging markets and the growth of TNE can help universities recover. However, it’s clear that significant changes are needed within the sector to ensure its long-term stability. As the situation continues to unfold, the role of government support and university leadership will be critical in shaping the future of higher education in the UK.
