UK universities face a multi-billion-pound hit from the Covid-19 crisis if overseas students fail to return after an extended break to their courses, education officials have warned.
The sector is seeking an extra £2 billion research funding to avoid “financial failure” within the sector, according to the body which speaks for 137 institutions across the UK.
It warned that the sector could lose £790 million alone this year because of the loss of income from catering, conferences and accommodation.
The failure to recruit overseas students, who are charged significantly higher rates compared with domestic students, would be a significant blow to the sector. It said the loss of all overseas students’ fees would cost the sector £6.9 billion a year.
Some 485,000 students from outside of the UK enrolled at universities in 2018/19 including nearly 17,000 students from the UAE, according to the UK’s Higher Education Statistics Agency. China provided the largest number with 78,000.
“Without proactive action from both institutions and support from government, Universities UK warns that some universities would likely face financial failure, with severe impacts on their students, staff, local community and regional economy,” the organisation said in a statement.
“Others would come close and be forced to reduce provision for students or to significant scale back research activities and capacity.”
It said the investment was needed to ensure universities could play a central role in the country’s recovery after the crisis.
A UK government spokesman said: "We recognise the outbreak poses significant challenges to the sector and the Government is working closely with universities to understand the financial risks and implications they might face at this uncertain time."
