The UK's Education Committee has launched a crucial inquiry to examine the growing reliance of English universities on international student enrollment and the associated implications for domestic students and institutional finances.

The cross-party committee of 11 MPs will delve into the changing landscape of international student numbers in recent years, their impact on university funding, and the availability of places for domestic students. A key focus will be determining whether universities are striking an appropriate balance between international and domestic student populations.

Recognising the significance of this issue, Robin Walker, Chair of the Education Committee, stated, "That the UK is the third most popular destination for international students is a source of pride and a credit to the strength of our world-class universities. The contribution that those students bring is also hugely valued in our cities, industries, and institutions."

However, Walker acknowledged the challenges faced by English universities, including elite institutions, as an increasing number find themselves heavily dependent on income from international students to balance their budgets. "This inquiry will explore concerns that some universities have become too reliant on students from abroad to shore up their balance sheets, and to what extent this is sustainable," he added.

The inquiry will scrutinise the potential financial risks associated with an over-reliance on international students and examine the overall contributions these students make to universities in England. It will also analyse recent and proposed changes to student visas and the Graduate Route to understand their impact on international student numbers and the effectiveness of the government's International Education Strategy, launched in 2019.

The committee's investigation comes amid growing concerns about budget deficits at a rising number of English universities. According to the committee, the proportion of higher education providers with an annual overspend increased from 5% in 2015 to 32% in 2020, with universities increasingly looking to international students to cover budget shortfalls as they pay significantly higher fees than domestic students.

Research commissioned by Universities UK (UUK) earlier this year highlighted the growing dependence on international student fees, with estimates suggesting that by 2026/27, fees from international students could account for up to 66% of all course fee income for 70 higher education institutions across England and Northern Ireland.

The latest figures show that in the 2021/22 academic year, there were 679,970 overseas students at UK universities, representing around a quarter of the total student population and a record high. The UK is currently ranked as the third most popular destination for international students.

The inquiry's launch coincides with the government's review of the UK's Graduate Route, with findings set to be reported to the Home Secretary by May 14. The Education Committee is currently inviting stakeholders to submit evidence relating to the inquiry's terms of reference until May 24.

As the Education Committee delves into this critical issue, the findings will shed light on the potential risks and opportunities associated with the growing international student presence in English universities. The inquiry's recommendations could shape future policies and strategies to ensure a sustainable and balanced approach to international and domestic student recruitment, safeguarding the financial stability of institutions while maintaining access for domestic students.