Select Committee on Economic Affairs Written Evidence


Memorandum by Universities UK

1.  What have been the numbers of migrants employed at higher education institutions in the UK over the past ten years, and what has been their share in the total workforce? Which occupations and academic positions have a particularly high share of migrants, and why? How do you see the demand for migrant teachers/academics developing over the next few years?

Universities UK response

  The figures on higher education staff collected by the Higher Education Statistics Agency (HESA) do not distinguish between migrants and non-migrants. Information is collected on nationality that may be taken as a broad indicator of migrant status although many non-EEA nationals may not require entry clearance or a visa.

  In July 2007 Universities UK published a policy briefing titled "Talent Wars: the international market for academic staff". Key points from this briefing included:

    —  In the academic year 2005-06 19.1% of academic staff were non-UK nationals and this group has increased significantly in recent years; 27% of all academic staff appointed in 2005-06 were non-UK nationals.

    —  There are more incoming academics than academic emigrants from the UK. In 2005-06 there were significant inflows from overseas at lecturer, researcher and other grades, with greater outflow than inflow at senior lecturer/researcher and professorial level. The greater new inflow in relevant areas is welcome but the greater net outflow at senior levels may require monitoring.

    —  The major countries of origin of non-UK academic staff working in UK universities are Germany, China, the USA, the Republic of Ireland, Italy and France.

    —  Non-UK academic staff tend to be younger than their UK colleagues.

    —  Non-UK academic staff are more concentrated in the following disciplines: languages, computer science, mathematics, physics, engineering and technology and social/political studies.

    —  Students are the major source of new entrants to the academic profession, including increasing numbers of international students studying in the UK.

  In terms of future demand there are some key factors to highlight:

    —  Many countries are engaged in higher education reforms that should result in more effective and efficient systems. It will also mean increased international competition for highly qualified academic staff as countries try to retain them in their own systems or at least to encourage them to return after a period overseas.

    —  Increased research and development targets in many countries will mean increasing competition for researchers around the world.

    —  The creation of the European Higher Education Area by 2010 is likely to be another important factor in reinforcing strong international demand for appropriately qualified academic manpower.

    —  There is a need for improved intelligence on the international academic recruitment market. There is a need for greater understanding of the decision-making processes of prospective international staff including more comparative data on the benefits that are offered in different countries. A greater understanding of the underlying influences on staff mobility may assist the UK to continue to compete effectively in the global talent war.

    —  There may be increasing pressure to consider the ethical dimensions of recruiting international staff, particularly from developing countries in areas such as health.

2.  Could you please provide a brief overview of the flows (in, out and net) and stocks of foreign students coming to and studying in the UK over the past ten years? What is the share of foreign students in the student population at higher education institutions in the UK, and how has this changed in recent years? Among foreign students, what is the composition by nationality (please distinguish between EU and non-EU, and major groups among non-EU students)? How do you expect the number and relative share of foreign students in the UK to develop over the next few years?

Universities UK response

  It is important to distinguish between international and EU student numbers. International is the term generally used in the sector to refer to non-EEA nationals, the term "foreign" or "overseas" is gradually declining in usage. EU and EEA students are generally considered for many purposes as "home" students.

NON-UK DOMICILED STUDENTS AS A PROPORTION OF ALL STUDENTS AT UK HEIs, 1996-2007


1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07

Number of International (Non-EU students)
109,940
116,840
117,290
122,150
136,290
152,625
184,685
210,515
218,395
223,850
239,210
%
6.3%
6.5%
6.4%
6.6%
6.8%
7.3%
8.5%
9.4%
9.5%
9.6%
10.1%
Number of EU students
88,124
96,424
101,995
102,510
94,575
90,135
90,580
89,545
100,005
106,225
112,260
%
5.0%
5.4%
5.5%
5.5%
4.8%
4.3%
4.2%
4.0%
4.4%
4.5%
4.8%
% Non-UK domiciled students
11.3%
11.8%
11.9%
12.1%
11.6%
11.6%
12.7%
13.4%
13.9%
14.1%
14.9%
Total HE student population
1,756,179
1,800,064
1,845,757
1,856,330
1,990,625
2,086,075
2,175,115
2,247,440
2,287,540
2,336,110
2,362,815




MAJOR COUNTRIES SUPPLYING STUDENTS TO UK HEIs, BY LEVEL OF STUDY, 2005-06


EU countries
Country
First
degree
Country
Other
Under-
graduate
Country
Post-
graduate
taught
Country
Post-
graduate
research

China
20,540
United States
2,915
China
22,830
China
4,835
Republic of Ireland
8,055
China
2,545
India
12,530
United States
3,170
Malaysia
7,655
Republic of Ireland
2,130
Greece
8,645
Greece
3,115
Hong Kong
6,425
France
2,115
United States
5,765
Germany
2,270
Germany
5,890
Germany
1,665
Republic of Ireland
5,410
Malaysia
1,785
France
5,735
Spain
1,360
Nigeria
4,990
India
1,775
Greece
5,335
India
1,130
Pakistan
4,455
Italy
1,680
Cyprus
4,400
Zimbabwe
985
Taiwan
3,840
France
1,290
India
3,765
Japan
965
Germany
3,440
Canada
1,245
Nigeria
3,320
Poland
710
France
3,320
Taiwan
1,210
United States
2,905
Nigeria
620
Thailand
2,230
Republic of Ireland
1,195
Spain
2,525
Greece
585
Japan
2,180
Thailand
1,035
Pakistan
2,430
Philippines
585
Canada
2,085
Mexico
925
Poland
2,270
Italy
465
Cyprus
2,015
Japan
875
Japan
2,175
Hong Kong
385
Hong Kong
1,880
Saudi Arabia
850
Sweden
2,130
Pakistan
350
Ghana
1,725
South Korea
835
Singapore
2,035
Taiwan
350
Malaysia
1,685
Spain
830
Norway
1,900
Malaysia
325
Italy
1,660
Portugal
815
South Korea
1,695
South Korea
310
Spain
1,510
Hong Kong
755
Italy
1,655
Cyprus
305
South Korea
1,190
Pakistan
705
Kenya
1,640
South Africa
250
The Netherlands
1,095
Iran
680
Sri Lanka
1,555
Canada
235
Turkey
1,005
Nigeria
675
Belgium
1,450
Sweden
225
Poland
975
Singapore
510
Portugal
1,305
Ghana
225
Saudi Arabia
945
Libya
495
Finland
1,190
Portugal
210
Kenya
875
Egypt
490


  Looking to the future continued growth is expected, although it is unlikely to match the growth of the last decade.

  In 2004 the British Council, Universities UK and IDP Education Australia produced a report "Vision 2020: forecasting international student mobility—a UK perspective". The study forecast that the total global demand for international higher education may increase from c.2.1 million in 2003 to approximately 5.8 million by 2020. Within this overall increase demand for international higher education in the higher education sectors of the five major English speaking destination countries (MESDCs—USA, Australia, Canada, UK, New Zealand) may increase from 1 million to 2.6 million.

  For the UK share of these projected increases a set of five scenarios were developed to forecast the likely impact of changes in the global international student market. Each scenario incorporated different predications regarding the relative performance of the UK compared to the other MESDCs and the impact on the UK market share. These figures are for both EU and international students as international is used to mean non-UK students in this report.

  Base scenario—assumes UK performance on attractiveness factors remained constant with changes in demand arising from demographics, economics and participation rates. This forecast suggests there could be 325,000 international students seeking higher education in the UK by 2010 and 511,000 by 2020.

  Optimistic scenario—assumes the UK will consistently increase its attractiveness. This forecast suggests there could be 400,000 international students seeking UK higher education by 2010 and 870,000 seeking UK higher education by 2020.

  Pessimistic scenario—assumes the UK will experience a decline in its attractiveness but particularly in the perception of quality. The forecast suggests around 158,000 international students may seek UK higher education by 2010 (a decline on the latest 2003 HESA figures) before rising to 254,000 in 2020.

  Price escalation scenario—assumes the UK will experience a decline in perception of affordability due to price increases but that numbers seeking UK higher education may increase to 525,000 in 2010 and to 735,000 in 2020. These seemingly contradictory trends may be explained by the view that price sometimes acts as a proxy for quality.

  EU impact scenario—examines the possible impact of changes in the pattern of demand from students from the expanding European Union. This forecast suggests that European student numbers may rise to 170,000 by 2020.

  Forecasts were also attempted for demand for UK higher education delivered outside the UK. Data on current offshore delivery by UK HEIs is limited so the forecasts for this area of activity should be viewed with caution. The research suggests that demand for UK higher education delivered outside the UK may increase significantly to 350,000 students by 2010 and 800,000 students by 2020. According to some scenarios this could see the number of students in UK higher education programmes outside the UK outnumber international students in the UK.

  The research looked at demand for different levels and forecasts a faster growth rate in postgraduate international student numbers than undergraduate international students. The research attempted to forecast demand for different subject areas with business studies remaining the most popular area and computer science experiencing the fastest growth rate according to the forecasts. Gender demand was investigated and although no attempt was made to forecast gender mix some interesting trends on gender were revealed based on current data.

  Another issue examined was the possible impact that increased higher education provision in particular countries may have on demand for international higher education. This aspect was focused on China and India as increased domestic provision in these two countries could potentially have the greatest impact on the UK and result in a significant decline in international student numbers in the UK. Reference was also made to demand for higher education in the UK population and what the ratio of international to UK students may be under these scenarios.

  This work is now being re-visited by the British Council in partnership with Universities UK.

  Each HEI will obviously also have projections and targets for international and EU student numbers alongside UK student numbers over the next few years. Universities UK is running a research project on the size and shape of the UK higher education sector in the future building in demographic projections but also international and EU factors.

3.  How would you assess the economic impacts of foreign students on higher education institutions in the UK, and on the UK economy more broadly? What has been the total income in university fees from foreign students in recent years, and how important are they for university finances?

Universities UK response

  International (non-EU) student fees make a significant contribution to higher education funding. In 2005-06 non-EU domicile student fees provided 8% of the total income of the higher education sector in the UK. In 2005-06 the total income of the UK higher education sector was £19.5 billion.

INCOME FROM NON-EU DOMICILE STUDENT FEES—SELECTED YEARS


(expressed as £ thousands in cash terms)
Non-EU domicile student fees
UK
England
Scotland
Wales
Northern
Ireland

2000-01
746,366
648,976
68,502
23,851
5,037
2004-05
1,395,773
1,214,806
124,774
48,717
7,476
2005-06
1,499,348
1,297,178
143,896
50,194
8,080


  Obviously there are significant institutional variations in income from international student fees.

  International students make a very positive economic impact on UK higher education but they are also very important for academic, social and cultural reasons.

  Universities UK has published research on the economic impact of UK higher education institutions and within that work there are the following points in relation to the wider economic impact of international students and visitors to UK HEIs:

    —  Personal (off-campus) expenditure of international students attending UK HEIs in 2003-04 was estimated to be £1.5 billion.

    —  Higher education makes a key contribution to business tourism with personal (off-campus) expenditure of international business and recreational visitors to UK HEIs estimated to be just over £106 million in 2004.

    —  International student expenditure generated £2.4 billion of output across the economy and over 21,900 jobs.

    —  International visitor expenditure generated nearly £200 million of output and over 2,700 jobs.

4.  Do you have any data/information about the share and average working hours of foreign students taking up employment in the UK during their studies?

Universities UK response

  This information is not collected. International (non-EEA) students are generally allowed to work for up to twenty hours per week during term-time and without restriction during vacations. Anecdotally a number of international students do work, often to learn more about the UK and to develop their English language skills if necessary. EU students obviously have no restrictions on access to the UK labour market.

5.  Do you have any comments on the new points-based systems for managing migration to be introduced by the Government later this year? How will the planned new system affect the number and composition of foreign students coming to the UK, and higher education institutions in the UK more generally? Do you have any specific policy recommendations?

Universities UK response

  The new points-based system has significant implications for higher education institutions (HEIs) as recruiters of international students, employers of international staff and hosts of international visiting staff. HEIs will be the highest volume users of the new immigration system.

  UK HEIs welcome many aspects of the new points-based immigration system and are keen to ensure it works appropriately and facilitates the mobility of international students, staff and visiting staff to the UK. The system includes welcome measures such as institutional visas, the possibility of tracking visa applications online and the new opportunity for international graduates to apply to stay in the UK to work for up to two years after graduation.

  However, a number of the proposals for the operation of the system are not appropriate for HEIs as they have been developed for employers and employees rather than for education institutions and students.

  The certificate process for Tier 4 needs to be re-designed to reflect the recruitment and admissions processes of HEIs. The current proposal for one certificate per student will not work for HE and if implemented could undermine the integrity of the new system. There needs to be a more flexible approach for HE to ensure student choice remains in the system.

  The migrant reporting timescales and process outlined in the recent sponsorship publication need to be re-considered for HE. They will not work for higher education as they do not fit with the organisation and delivery of higher education. It would be appropriate for the Home Office to adopt the Australian system where HEIs are trusted to monitor their migrants using their own systems.

  There is a lack of clarity about the position under the new system of the highly-skilled people who currently enter the UK as academic visitors and sponsored researchers. They will not qualify to enter under Tier 2 as they are not coming to the UK to do particular jobs, they may not qualify for Tier 1 but the current restrictive structure of Tier 5 is not appropriate for these people. A new sub-category within Tier 5 should be created for academic researchers coming to the UK.

  There has been no input from the higher education sector to the development of the new IT system underpinning the points-based system despite repeated offers from Universities UK to facilitate discussions between the Home Office and IT Directors from HEIs. This is extremely concerning and against all recommended practice in the development of new systems. The new sponsor management system must be able to receive data from and have an interface with HEIs own systems as currently takes place between HEIs and various agencies. Universities UK would be glad to help facilitate these critical discussions.

  There are also likely to be significant new resource costs for HEIs in reviewing policies and processes ahead of the implementation of the new system as well as ongoing costs to ensure compliance.

  Universities UK hopes that the new system will not have any impact on the number and composition of international students coming to the UK. The UK is very successful in attracting international students to our HEIs and considering the emphasis placed on international education by the former and current Prime Ministers it would be very unfortunate if the new system affected international student recruitment. We watched with considerable concern the impact of the visa changes in the USA in 2001 and 2002 that led to a significant downturn in international students going to the USA and are only now recovering.

  The new opportunity for international graduates to apply to stay and work in the UK for up to two years after graduation is very positive and reflects the contribution that this group of highly-skilled people can make to the UK economy. It should assist in making the UK an even more attractive destination for international students as the provision is currently more favourable that those that apply in Australia, Canada and the USA.

  However, it is unclear as to the extent of UK employer awareness of the new provision and unless employers recognise the opportunities it may offer their businesses the provision may suffer if international graduates do not find appropriate employment. Discussions are needed between relevant Government departments (Home Office, DWP and DIUS) as well as with employer organisations to convey information about the new arrangements.

  There is an urgent need to begin effective communication both in the UK and overseas about the new system. Overseas it is very important to have effective communication strategies as we know prospective international students often begin to research study destinations many months in advance and gather information on institutions but also country specific requirements. The new system should bring benefits to genuine migrants in terms of a more efficient service but we need to be careful that the perceptions are positive and not that the UK is making it more difficult for migrants or that we are unwelcoming.

4 February 2008





 
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