English Universities Warned Not to Over-Rely on Fees of Students from China
Higher education regulator asks 23 institutions for contingency plans in case of sudden interruption of income
England’s higher education regulator has warned universities against over-reliance on tuition fees of students from China. The Office for Students (OfS) has written to 23 universities with high numbers of Chinese students, asking to see their contingency planning in case of a sudden interruption to overseas recruitment.
The OfS report highlighted that such interruptions could be caused by a changing geopolitical environment, leading to an immediate and significant impact on income for universities. To address this concern, the OfS has requested that universities with high exposure to these risks share their plans to mitigate potential financial challenges.
The growing dependence of universities on international students is driven by the higher fees they can charge, which help offset the limited increase in domestic tuition fees since their introduction in 2012. China is a particular concern as it sends the highest number of students to study in the UK compared to any other country. In the 2021/22 academic year, 27% of all non-EU students, or 151,690 pupils, were from China. University College London and Manchester University had the highest numbers of Chinese student enrolments.
Susan Lapworth, the OfS chief executive, acknowledged the significant benefits international students bring to higher education but expressed concerns about universities becoming too reliant on fee income from students of a single country. Lapworth emphasized the importance of universities having credible contingency plans in place to protect themselves from the consequences of a sudden reduction in their income.
In a related development, Rishi Sunak, the UK Chancellor of the Exchequer, recently backtracked on his earlier pledge to close UK branches of the Confucius Institute, sponsored by Beijing. Sunak’s decision has raised concerns about potential Chinese influence and soft power being promoted through these institutes. Liz Truss, Sunak’s predecessor, highlighted the need for urgent action to address this issue.
The UK government’s position is that while it plans to remove all government funding from the Confucius Institute, it currently judges a complete ban to be disproportionate. The government clarified that it does not directly fund the institute.
A UK charity, UK-China Transparency, will argue that the Higher Education (Freedom of Speech) Act empowers regulators to shut down the Confucius Institutes. The charity’s report from last month criticized the institutes for vetting teaching staff based on political leaning, ethnicity, and compliance with Chinese Communist Party (CCP) guidelines. These guidelines require staff to enforce CCP values, potentially resulting in breaches of legal responsibilities of universities to protect students from harassment.
Universities UK (UUK), which speaks for 140 universities, acknowledged the risks of over-reliance on specific student streams and stated that universities have been actively working to diversify their student base. UUK also highlighted the financial risks universities face from fee freezes and increased costs.
As the higher education sector navigates potential uncertainties, universities need a clear and consistent funding model to safeguard their work. The Office for Students is actively collaborating with universities to ensure they are alert to risks and equipped with effective contingency plans.
With international students playing a vital role in the UK higher education system, the need for sustainable funding sources and effective risk management has become more crucial than ever.
