We are concerned that the financial sustainability of some providers is being put at risk by their heavy dependence on their ability to continue growing overseas student numbers. Many providers are already highly dependent on cross-subsidy to make up deficits in publicly funded teaching and research. Much of this subsidy comes from income from overseas students’ fees; in 2019–20, there were more than 340,000 overseas students at English providers, almost half of whom came from China or India....

We are concerned that the financial sustainability of some providers is being put at risk by their heavy dependence on their ability to continue growing overseas student numbers. Many providers are already highly dependent on cross-subsidy to make up deficits in publicly funded teaching and research. Much of this subsidy comes from income from overseas students’ fees; in 2019–20, there were more than 340,000 overseas students at English providers, almost half of whom came from China or India. Many providers’ medium- and long-term financial forecasts assume continued growth in student numbers, particularly overseas students. The OfS monitors p Type: recommendation | Number: 4 | Response status: not_addressed Government response: 4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 The department recognises that the financial sustainability of the higher education sector depends on the continuing contribution made by income from overseas student