Methodology

UK revenue from education related exports and transnational education activity

Published

Introduction

This technical document provides further information on the data sources and methodology used to calculate total UK revenue from education related exports and transnational education activities from 2019 to 2022.

Note on new methodology for 2022

The Department for Education (DfE) is committed to improving the accuracy and robustness of these statistics as data quality and availability improves. In 2022, LSE Consulting were commissioned on behalf of the Department for Business and Trade (DBT) to review our existing methodology and bring forward recommendations where it could be improved. These recommendations were set out in its report which was published in March 2023[1] (opens in a new tab)

The DfE has considered carefully the recommendations set out in the final report and for this year’s release is implementing several of the report’s recommendations. Accordingly, the DfE are publishing two sets of estimates of UK revenue from education related exports and transnational education activities for 2022 using the existing and new methodological approach. 

The reason for this is twofold. First, setting out how the methodological changes we are implementing impact our estimates is in accordance with the principle of transparency in the production and presentation of official statistics. Second, it meets our action laid out in the International Education Strategy to provide a clearer picture of exports activity by improving the accuracy and coverage of our published data (action 9)[2] (opens in a new tab)

This note will indicate where a change in methodology has been implemented for the 2022 statistical release, presenting both the current and new method for each export revenue where applicable. For brevity, the underlying figures used to obtain the overall figure have not been included. It is possible to calculate these figures using the steps outlined in the methodology.

Education related exports

Education related exports are defined here as expenditure by overseas residents on education related products and services which are produced and supplied by a UK resident or UK owned organisation based in the UK. This expenditure is treated as export revenue regardless of whether it takes place in the UK or overseas.

Education exports will include expenditure by overseas residents on courses at a UK education or learning provider. This will include course fees paid to the provider as well as spending on living expenses (e.g. food, accommodation, transport, and recreation and entertainment). This expenditure is often referred to as education-related travel exports.

Education exports will also include revenue from the provision of other goods and services such as online learning, education related equipment and software (edtech), publishing, academic journal subscriptions, and royalties from the licensing of intellectual property rights (IPR). 

It should be noted that education related export statistics reflect the full value of the revenue gained from the provision of an education related product or service with no deduction of any transportation or delivery costs that may be incurred. 

Transnational education (TNE) activity 

Some UK-owned organisations in the UK will have subsidiaries or long-term bases in other countries from where they supply education-related products and services. This will include UK education providers who receive tuition fees from students who are enrolled at one of their overseas campuses. 

Until now, the current methodology has assumed that only repatriated profits from these overseas campuses (arbitrarily estimated as 10% of sales revenue) are counted as UK exports. However, under the new methodology, this assumption has been revised to align more closely with the Manual on Statistics of International Trade in Services (MSITS) (opens in a new tab), whereby the entire "sales of service" or revenue as exports of UK-controlled foreign affiliates is now taken into account. 

Data Sources

Summary

The data used to estimate education related exports and transnational education (TNE) activity comes from multiple different data sources, many of which were not purposely constructed to provide estimates of the export value of specific education related services and products. This data varies in quality, availability and accessibility. The following types of data sources are used:

Official data sources

This includes data published by the Higher Education Statistics Agency (HESA)[1] (opens in a new tab) relating to, for example, international student numbers studying at providers of higher education. It also includes visa application data reported by the Home Office[2] (opens in a new tab). The quality of this data is judged to be high and there is good reason to expect it to remain readily available in the future.

Research evidence 

Some of the figures rely on the findings from ad hoc research and survey evidence and on the extrapolation of these findings to derive estimates where there are key data gaps. Where this has been done, the research reports used are indicated.

Market research from trade associations and representative bodies 

These data sources are of varying quality. As these organisations are often the sole source of such information it is not possible to obtain a complete understanding of the level of accuracy. Furthermore, some of the data is provided to the department through the goodwill of individual organisations, meaning there is a risk that access to such data may change or be discontinued in the future. 

Publicly available data from private companies 

This type of information is published in annual reports and financial statements. In these instances, the data may not be wholly or always suitable for use by the department because of the way in which it has been compiled and presented.

Changes in current prices

Where data is not collected or available on an annual basis, a GDP deflator has been applied to reflect the value in current (2022) prices. The GDP deflators used are published by HMT[3] (opens in a new tab).

Higher Education Providers - 2019

Fee Income

Fee income data are compiled from the Higher Education Statistics Agency (HESA) finance data record (opens in a new tab). HESA record the aggregate value of fees at Higher Education Institutions (HEIs) for EU and non-EU domiciled students. These values have been used without further calculation. Since the previous publication, HESA has included new providers in its financial data collection. This publication uses the latest financial data, which restates tuition fee income figures across multiple years to include new providers. Therefore, tuition fee figures in this publication sometimes differ from previous years.

Scholarships

Since scholarships are publicly funded the value of awards to non-EU students has been subtracted from overall fee income. The following scholarships have been included in these calculations:

Cost to government of fee loans

EU students can access student loans for fees. The proportion of these loans that are not paid back is subtracted from the fee income as this value is funded by Government. DfE does not estimate the proportion of the value of fee loans to EU students. The RAB charge (opens in a new tab) for all full-time higher education student loans is currently estimated to be around 53% for 2019-20. This figure is multiplied by undergraduate EU fee income in 2019/20 to give a high-level estimate of the RAB charge to government.

Living expenditure 

Weekly living costs for EU and non-EU domiciled students are estimated using the Student Income and Expenditure Survey (SIES). For 2019/20, the average weekly living costs are derived from the ad-hoc release published in support of the Post-18 Review of Education (opens in a new tab).

The calculation for average weekly living costs is derived from the mean cost of a full-time student living away from home in an academic year (39 weeks). 

The annual living cost is calculated by multiplying the average weekly cost by the length of stay in the UK, this is assumed to be: 

  • 39 weeks for undergraduate EU students (it is assumed they are more likely to travel to their country of origin during the holidays)
  • 42 weeks for undergraduate non-EU students (it is assumed they are less likely to travel to their country of origin during the holidays)
  • 52 weeks for postgraduate students (reflects the longer course duration)

The number of students split by full-time/part-time, EU/non-EU, undergraduate/ postgraduate in each year is taken from the HESA student record (opens in a new tab). These numbers are then multiplied by the course length (weeks) and by the weekly living costs to allow a calculation of the aggregate level of living costs for EU and non-EU students. Finally, in order to estimate the figure for the academic year 2019/20, a GDP deflator has been applied to the figure.

Erasmus+

Statistics on the number of Erasmus+ students coming into the UK are published by Eurostat (opens in a new tab). Higher Education students who study in the UK under the Erasmus+ scheme do not pay fees to the UK institution but to the partner institution in their country of origin. The only contribution included in calculations for Erasmus+ students is therefore living expenditure. It is assumed that all Erasmus+ students are full time, undergraduate students studying for 39 weeks. 

Research and other contracts 

The value of research grants and contracts split between UK and international sources are captured through data HEIs return to HESA (opens in a new tab). This incorporates export income from academic departments' research grants and contracts, academic services and administrative/central services.

International Intellectual Property income

Information on the total value of HE Intellectual Property (IP) revenue comes from the Higher Education - Business and Community Interaction survey (opens in a new tab) (HE-BCI). This provides data on the total (domestic and international) income from IP. 

To estimate the proportion of HE income from IP that is exported, the estimate from London Economics research (opens in a new tab) is used. London Economics took data on the total revenue and export revenue for the R&D sector in 2008. They found that 38 per cent of the R&D sector revenue was generated through exports. It is assumed that this same proportion can be applied to the education sector. 

Other overseas income

This is calculated using London Economics’ research, which conducted a survey of Tier 4 sponsors. HEIs responding to questions on income sources were also asked about any income that they earn from an overseas source that is not covered elsewhere. It is therefore not clear what is covered in this category. Results were grossed up from 14 responses to the population of 165 HEIs, suggesting a high level of uncertainty in these estimates. London Economics estimated £61.6 million of HE income from other sources in 2008/09.

The growth rate over the 2004/05 to 2008/09 period was calculated by London Economics to be 12.3 per cent. This was carried forward to future values.

Higher Education Providers - 2020

Fee Income

Fee income data are compiled from the Higher Education Statistics Agency (HESA) finance data record (opens in a new tab). HESA record the aggregate value of fees at Higher Education Institutions (HEIs) for EU and non-EU domiciled students. These values have been used without further calculation. Since the previous publication, HESA has included new providers in its financial data collection. This publication uses the latest financial data, which restates tuition fee income figures across multiple years to include new providers. Therefore, tuition fee figures in this publication may differ from previous years.

Scholarships

Since scholarships are publicly funded the value of awards to non-EU students has been subtracted from overall fee income. The following scholarships have been included in these calculations:

Cost to government of fee loans

EU students can access student loans for fees . The proportion of these loans that are not paid back is subtracted from the fee income as this value is funded by Government. DfE does not estimate the proportion of the value of fee loans to EU students. The RAB charge (opens in a new tab) for all full-time higher education student loans is currently estimated to be around 53% for 2020-21. This figure is multiplied by undergraduate EU fee income in 2020/21 to give a high-level estimate of the RAB charge to government.

Living expenditure 

Weekly living costs for EU and non-EU domiciled students are estimated using the Student Income and Expenditure Survey (SIES). For 2020/10, the average weekly living costs are derived from the ad-hoc release published in support of the Post-18 Review of Education (opens in a new tab).

The calculation for average weekly living costs is derived from the mean cost of a full-time student living away from home in an academic year (39 weeks). 

The annual living cost is calculated by multiplying the average weekly cost by the length of stay in the UK, this is assumed to be: 

  • 39 weeks for undergraduate EU students (it is assumed they are more likely to travel to their country of origin during the holidays)

 

  • 42 weeks for undergraduate non-EU students (it is assumed they are less likely to travel to their country of origin during the holidays)

 

  • 52 weeks for postgraduate students (reflects the longer course duration)

The number of students split by full-time/part-time, EU/non-EU, undergraduate/ postgraduate in each year is taken from the HESA student record (opens in a new tab). These numbers are then multiplied by the course length (weeks) and by the weekly living costs to allow a calculation of the aggregate level of living costs for EU and non-EU students. For part time students there is an assumption that they will stay for the same number of weeks in the UK as a counterpart full time student, but they will also be working. However, the estimated employment income earned in the UK is not subtracted from the living expenditure because it does not agree with the standard practice for calculating exports. See 2017’s publication (opens in a new tab) for more detail. Finally, in order to estimate the figure for the academic year 2020/21, a GDP deflator has been applied to the figure.

Erasmus+

Statistics on the number of Erasmus+ students coming into the UK are published by Eurostat (opens in a new tab). Higher Education students who study in the UK under the Erasmus+ scheme do not pay fees to the UK institution but to the partner institution in their country of origin. The only contribution included in calculations for Erasmus+ students is therefore living expenditure. It is assumed that all Erasmus+ students are full time, undergraduate students studying for 39 weeks. 

 

Research and other contracts 

The value of research grants and contracts split between UK and international sources are captured through data HEIs return to HESA (opens in a new tab). This incorporates export income from academic departments' research grants and contracts, academic services and administrative/central services.

International Intellectual Property income

Information on the total value of HE Intellectual Property (IP) revenue comes from the Higher Education - Business and Community Interaction survey (opens in a new tab)(HE-BCI). This provides data on the total (domestic and international) income from IP. 

To estimate the proportion of HE income from IP that is exported, the estimate from London Economics research (opens in a new tab) is used. London Economics took data on the total revenue and export revenue for the R&D sector in 2008. They found that 37.5 per cent of the R&D sector revenue was generated through exports. It is assumed that this same proportion can be applied to the education sector. 

Other overseas income

This is calculated using London Economics’ research (opens in a new tab), which conducted a survey of Tier 4 sponsors. HEIs responding to questions on income sources were also asked about any income that they earn from an overseas source that is not covered elsewhere. It is therefore not clear what is covered in this category. Results were grossed up from 14 responses to the population of 165 HEIs, suggesting a high level of uncertainty in these estimates. London Economics estimated £61.6 million of HE income from other sources in 2008/09.

The growth rate over the 2004/05 to 2008/09 period was calculated by London Economics to be 12.3 per cent. This was carried forward to future values.

Higher Education Providers - 2021

Fee Income

Fee income data are compiled from the Higher Education Statistics Agency (HESA) finance data record[1] (opens in a new tab). HESA record the aggregate value of fees at Higher Education Providers (HEPs) for EU and non-EU domiciled students. These values have been used without further calculation. Since the previous publication, HESA has included new providers in its financial data collection. This publication uses the latest financial data, which restates tuition fee income figures across multiple years to include new providers. Therefore, tuition fee figures in this publication may differ from previous years.

Scholarships

Scholarship revenue awarded to non-EU students had been previously substraced from overall fee income. However, as outlined by MSITS[2] (opens in a new tab), “goods and services may be purchased by the persons concerned or by another party on their behalf… tuition and living costs of a student may be paid by a government” or any other institution, including the provider. Therefore, in this iteration of the publication, scholarships revenue will be added on to overall fee income. The following scholarships have been included in these calculations.

EU higher education students and student finance access

EU, other EEA and Swiss nationals, and their family members who are covered by the Withdrawal Agreements (the EU Withdrawal Agreement, EEA-EFTA Separation Agreement and the Swiss Citizens’ Rights Agreement) continue to have access to home fee status and student financial support on broadly the same basis as previously. Generally, this covers those who:

  • were living in the UK by 31 December 2020 having exercised a right to reside under EU law, the EEA Agreement or the Free Movement of Persons Agreement, and;
  • continue to live in the UK after 31 December 2020.

Therefore, we have assumed that EU students who enrolled onto a course at a UK HE provider before 1 January 2021 can access student finance support like home students . The proportion of these loans that are not paid back is subtracted from the fee income as this value is funded by Government. DfE does not estimate the proportion of the value of fee loans to EU students. The RAB charge for all full-time higher education student loans is currently estimated to be around 44% for 2021-22[6] (opens in a new tab). This figure is multiplied by the proportion of undergraduate EU fee income estimated to have started prior to 1 January 2021, to give a high-level estimate of the RAB charge to government.

For students starting from 1 January 2021 onwards, we have assumed that they would not be eligible for the home status. They would therefore not have access to student finance and there would be no RAB charge associated with them.

We used HESA Figure 9[7] (opens in a new tab) data to estimate the proportion of undergraduate first-year students in 2020/21 and 2021/22 calendar years and subtracted this from the EU RAB estimates explained above.

Living expenditure 

Weekly living costs for EU and non-EU domiciled students are estimated using the Student Income and Expenditure Survey (SIES). For 2021/122, the average weekly living costs are derived from the updated version of the SIES for the 2021/22 academic year [8] (opens in a new tab).

The calculation for average weekly living costs is derived from the mean cost of a full-time student living away from home in an academic year (39 weeks). 

The annual living cost is calculated by multiplying the average weekly cost by the length of stay in the UK, this is assumed to be: 

  • 39 weeks for undergraduate EU students (it is assumed they are more likely to travel to their country of origin during the holidays)
  • 42 weeks for undergraduate non-EU students (it is assumed they are less likely to travel to their country of origin during the holidays)
  • 52 weeks for postgraduate students (reflects the longer course duration)

The number of students split by full-time/part-time, EU/non-EU, undergraduate/ postgraduate in each year is taken from the HESA student record[9] (opens in a new tab). These numbers are then multiplied by the course length (weeks) and by the weekly living costs to allow a calculation of the aggregate level of living costs for EU and non-EU students.[10] (opens in a new tab)

Erasmus+

Statistics on the number of Erasmus+ students coming into the UK are published by Eurostat[11] (opens in a new tab). Higher Education students who study in the UK under the Erasmus+ scheme do not pay fees to the UK institution but to the partner institution in their country of origin. The only contribution included in calculations for Erasmus+ students is therefore living expenditure. It is assumed that all Erasmus+ students are full time, undergraduate students studying for 39 weeks. 

Research and other contracts 

The value of research grants and contracts split between UK and international sources are captured through data HEIs return to HESA[12] (opens in a new tab). This incorporates export income from academic departments' research grants and contracts, academic services and administrative/central services.

International Intellectual Property income

Information on the total value of HE Intellectual Property (IP) revenue comes from the Higher Education - Business and Community Interaction survey (HE-BCI)[13] (opens in a new tab). This provides data on the total (domestic and international) income from IP. 

To estimate the proportion of HE income from IP that is exported, the estimate from London Economics research is used[14] (opens in a new tab). London Economics took data on the total revenue and export revenue for the R&D sector in 2008. They found that 37.5 per cent of the R&D sector revenue was generated through exports. It is assumed that this same proportion can be applied to the education sector. 

Other overseas income

This is calculated using London Economics’ research[15] (opens in a new tab), which conducted a survey of Tier 4 sponsors. HEIs responding to questions on income sources were also asked about any income that they earn from an overseas source that is not covered elsewhere. It is therefore not clear what is covered in this category. Results were grossed up from 14 responses to the population of 165 HEIs, suggesting a high level of uncertainty in these estimates. London Economics estimated £61.6 millions of HE income from other sources in 2008/09.

The growth rate over the 2004/05 to 2008/09 period was calculated by London Economics to be 12.3 per cent. This was carried forward to future values.

Pathway providers 

Pathway Provider Programmes help to prepare international students to study at UK universities. Over 90% of the universities in the UK have a pathway provision . To estimate the revenue generated from exports, data has been collected from the following six pathway providers: CEG, INTO University Partnerships, Kaplan, Navitas, Oxford International, and Study Group. The following metrics are collected: 

  • Number of international students
  • Tuition revenue (total gross revenue)
  • Any other revenue from non-UK students
  • Total Revenue

Data is sourced directly from Kaplan. 

 

[1] (opens in a new tab) HESA Finance Record - https://www.hesa.ac.uk/data-and-analysis/providers/finances/ (opens in a new tab)

[2] (opens in a new tab)  Manual of statistics for international trade in services: seriesm_86rev1e.pdf (un.org) (opens in a new tab)

[3] (opens in a new tab) FCO Annual Reports: FCDO annual report and accounts 2021 to 2022 - GOV.UK (www.gov.uk) (opens in a new tab)

[4] (opens in a new tab) Annual reports of the Commonwealth Scholarship Commission. Scholarship expenditure is estimated as total programme expenditure minus 'other programme expenditure'. FCDO annual report and accounts 2021 to 2022 - GOV.UK (www.gov.uk) (opens in a new tab)

[5] (opens in a new tab) Annual reports of the Marshall Aid Commemoration Commission. FCDO annual report and accounts 2021 to 2022 - GOV.UK (www.gov.uk) (opens in a new tab)

[6] (opens in a new tab) https://www.gov.uk/government/collections/statistics-student-loan-forecasts (opens in a new tab)

[7] (opens in a new tab) https://www.hesa.ac.uk/data-and-analysis/sb265/figure-9 (opens in a new tab)

[8] (opens in a new tab)  Student Income and Expenditure Survey 2021 to 2022 Report (publishing.service.gov.uk) (opens in a new tab)

[9] (opens in a new tab) HESA Student Record - https://www.hesa.ac.uk/data-and-analysis/students (opens in a new tab) 

[10] (opens in a new tab) For part time students there is an assumption that they will stay for the same number of weeks in the UK as a counterpart full time student, but they will also be working. However, the estimated employment income earned in the UK is not subtracted from the living expenditure because it does not agree with the standard practice for calculating exports. See 2017’s publication for more detail: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/630741/UK_Revenue_from_Educational_Exports_2010-14.pdf/ (opens in a new tab)

[11] (opens in a new tab) UK Erasmus+ 2020 in numbers (europa.eu) (opens in a new tab)

[12] (opens in a new tab) HESA Finance Record - https://www.hesa.ac.uk/data-and-analysis/providers/finances/ (opens in a new tab)

[13] (opens in a new tab) http://www.hefce.ac.uk/ke/hebci/ (opens in a new tab)

[14] (opens in a new tab) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32395/11-980-estimating-value-of-education-exports.pdf (opens in a new tab)

[15] (opens in a new tab) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32395/11-980-estimating-value-of-education-exports.pdf (opens in a new tab)

Higher Education Providers - 2022

Fee income

Fee income data is from table 6 (last updated: May 20-25) of the Higher Education Statistics Agency (HESA) finance data record[1] (opens in a new tab).  Data for 2022/23 is published for 303 higher education providers (HEP’s) in the UK. This is two more providers compared to 2021/22, when data was published for 301 providers. Before 2022/23, HESA has recorded separately the value of fees of all HEP’s for EU and non-EU domiciled students and these values have been used without further data transformation or adjustment. 

From 2022/23, English providers have not been required to submit fee income data by an EU/non-EU domicile split. The percentage of fee income originating from EU students has therefore been estimated by calculating the ratio of EU to non-EU fee income using data from providers in England that did publish this information and providers in the devolved administrations. This ratio was then applied to the total non-UK fee income as reported by HESA in table 6. 

As part of their data submission, HE providers can restate figures for the previous year. Tuition fee figures in this publication therefore may differ from figures stated in previous years.   

Scholarships

In 2021, the value of scholarships awarded to non-EU students was included as a source of export revenue. However, due to the risk of double counting – as scholarship revenue is assumed to already be included in provider’s fee income statements – this category has now been removed as a source of export revenue for the years 2010 to 2022. 

EU higher education students and student finance access

Under the Withdrawal Agreement, EU students starting their course at a provider in the UK prior to 1 January 2021 are assumed to have home fee status and eligible for student support. Under the current methodology, the proportion of student loans not expected to be repaid by EU students and therefore written off by the Exchequer, has been subtracted from the total EU student fee income figure as this value is funded by the government. The write off cost, as represented by the RAB charge, has only been applied to the proportion of fees paid by EU undergraduate students who started prior to 1 January 2021, to give a high-level estimate of the RAB charge or cost to government. For all full-time higher education student loans, the RAB charge was estimated to be 28% for the financial year 2022-23[2] (and 28% for academic year 2022/23 after adjustments). 

As outlined by MSITS[3] (opens in a new tab), however, “goods and services may be purchased by the persons concerned or by another party on their behalf… tuition and living costs of a student may be paid by a government”. Accordingly, we have adopted a methodological change in which RAB charges are no longer applied to the value of tuition fee income from EU students. 

We have assumed that EU students starting after 1 January 2021 are not eligible for home fees and student finance. We have used HESA figure 9[4] (opens in a new tab) data to estimate the proportion of EU undergraduate first-year students in 2021/22 and 2022/23.

Living expenditure 

Weekly living costs for EU and non-EU domiciled students are derived from the most recent Student Income and Expenditure Survey (SIES) which reports estimates of the average weekly living costs for the 2021/22 academic year[5] (opens in a new tab). These estimates have been uprated by inflation for 2022/23.

The estimated annual living costs of an international student will vary according to the length of stay in the UK, which is assumed to be: 

  • 39 weeks for undergraduate, EU students (it is assumed they are more likely to travel to their country of origin during the holidays)
  • 42 weeks for undergraduate, non-EU students (it is assumed they are less likely to travel to their country of origin during the holidays)
  • 52 weeks for EU and non-EU postgraduate students (reflects the longer course duration)

The number of student enrolments, split by level and mode of study and domicile, (i.e. full-time/part-time, undergraduate/postgraduate, EU/non-EU), in each year is taken from table 9 of HESA student records[6] (opens in a new tab). Student figures are then multiplied by the course length (weeks) and by the SIES estimates of average weekly living costs to calculate aggregate living cost expenditure for EU and non-EU students. 

It is assumed that part-time students stay for the same number of weeks in the UK as full-time students, but that they will also be working during this period. The estimated employment income earned in the UK is not subtracted from the living expenditure because it is not in accordance with the standard practice for calculating exports[7] (opens in a new tab) .

Erasmus+

The UK is not participating in the latest Erasmus+ programme (2021-2027) meaning that this scheme no longer generates export revenue for the UK. The UK government’s replacement scheme, Turing, does not generate export revenue since it only supports the outward mobility of UK students participating in the programme.

Data for the number of incoming Erasmus+ student numbers was unavailable for 2020/21. The student figures for 2019/20 have been used for 2020/21. 

Research and other contracts 

The value of research grants and contracts from EU and non-EU sources are reported by Higher Education providers and published by HESA in table 5 of their finance data[8] (opens in a new tab). The total value is reported under cost centre 207: Total research grants and contracts. The sources of EU income are government bodies (8), charities (9), industry, commerce & public corporations (10) and other sources (11). Non-EU income is comprised of charities (12), industry, commerce & public corporation (13) and other sources (14).

International intellectual property income

The figure for total HE intellectual property (IP) revenue is sourced from table 4d in HESA’s HE-BCI data[9] (opens in a new tab). The current methodology assumed that 37.5% of total IP income has been exports[10] (opens in a new tab). This export rate was based on research undertaken by London Economics (2011), who estimated that 37.5% of the Research and Development (R&D) sector revenues are generated through exports. This same proportion was assumed to be applicable to the education sector. 

Under the new methodology, total IP revenues continue to be sourced from table 4d in HESA’s HE-BCI data. However, the export rate of IP revenue is now estimated by calculating the percentage of HE non-software income generating licenses that are overseas using Table 4b[11] (opens in a new tab) of HESA’s HE-BCI data. This percentage is assumed to represent the overall export rate and applied to the total IP revenue figure to gain the estimated value of IP exports. 

Other overseas HE income

The current method to calculate other overseas HE income is based on London Economics’ research,[12] (opens in a new tab) which used the survey responses of 14 Tier 4 providers to produce a grossed-up estimate for all HE providers. The growth rate over the 2004/05 to 2008/09 period, calculated by London Economics to be be 12.3%, was then used to estimate values of other HE income in subsequent years.

Given the significant uncertainties that now exist around the true figure, coupled with the risks of double counting and including revenue that may not relate to education related exports, we have decided to remove this income stream from our 2022 estimates.

Pathway providers 

Pathway provider programmes help to prepare international students to study at UK universities. Over 90% of the universities in the UK offer pathway provision. To estimate the revenue generated from exports of pathway provision, data has been collected from the following six pathway providers: CEG, INTO University Partnerships, Kaplan, Navitas, Oxford International, and Study Group. To produce this estimate, data on the following metrics have been collected: 

  • Number of international students
  • Tuition revenue (total gross revenue)
  • Any other revenue from non-UK students – this is revenue from Pathway providers own/managed residences used by their students while on the pathway course.
  • Total Revenue
  • Student numbers reported / not reported to HESA (Only courses at degree level (RQF4 and above) are eligible to be submitted to HESA. Pre-degree programmes (i.e.) Foundation Programmes and some Pre-Masters Programmes are not eligible to be submitted and therefore do not appear on any official pathway data)

Data is sourced directly from Kaplan, who provided us with aggregate data for the six pathway providers. To avoid double counting, total revenue from pathway provision is reduced by the proportion of students who are reported to HESA. 

Student numbers reported to HESA are unavailable for 2017 and 2018. Instead, the proportion of students reported to HESA from 2019 is used for these years.

Asynchronous online learning 

Asynchronous online learning is a new, separate, category of education related activity that used to be included in the HE TNE estimates (see p.16) in the previous publication. 

As part of their Aggregate Offshore Record (AOR), HESA publish data on the number of students undertaking distance, flexible or distributed learning (figure 12)[13] (opens in a new tab). All students in distance, flexible or distributed learning are assumed to be engaged in asynchronous online learning. To estimate the fees associated with these students, HESA publishes aggregate fee income data of TNE activity for providers in the devolved administrations only (table 6)[14] (opens in a new tab). An estimate of average, per-student fee revenue in the devolved administrations is calculated using this data and then multiplied by the total number of students in asynchronous online learning to derive a UK wide estimate.   

HE providers’ other course fees

Other course fees is a new category of export revenue, capturing HE provider’s income from non-credit bearing course fees and FE course fees. The fee data is reported in table 6 by HESA[15] (opens in a new tab). Given that fee information is not split by domicile, export revenue is estimated by calculating the proportion of total HE fee income attributed to international fee income (see table 6)[16] (opens in a new tab) and applying that same proportion to the total other course fees figure. 

Further Education - 2019

The number of international students in Further Education (FE) has been estimated using Home Office visa application data (opens in a new tab). This data is only submitted by non-EU applicants, and therefore does not include the number of EU students studying at FE providers. This means our figures will not fully capture this component of the value of education exports.

For this publication, application data (opens in a new tab) was needed for the calendar year 2019, however, due to data issues it has not been possible to breakdown the numbers of applications for Further Education in Quarter 4 2019. Instead, we use the number of applications in Quarter 4 2018 as a proxy. 

The volume figures (opens in a new tab) are revised downwards to reflect the number of applications that are granted. This is estimated based on the proportion of Tier 4 applications granted, which will include students in other education sectors, not just FE. 

In 2020, an estimated 97 per cent of Tier 4 – general student (main applicant) - visa applications were granted. Using this method, approximately 13,200 non-EU students were estimated to be studying at FE colleges in 2019. 

Fee expenditure

The average value of tuition fees for international FE students is estimated using a survey conducted by the Association of Colleges (opens in a new tab)

Living expenditure 

It is assumed that the weekly living expenditure for FE international students is the same as for HE students. The course duration is assumed to be 36 weeks. To calculate both fees and living expenditure for the 2019 calendar year, migration data (opens in a new tab) for the first three quarters of 2019 were used, as well as fourth quarter data for 2018. Due to the lack of data availability for quarter four in 2019, it has been assumed that fourth quarter data for 2018 and 2019 would be similar in value.

Other income

This estimate is based on a London Economics’ survey of Tier 4 sponsors. FE colleges were asked to state what other income they receive that is not covered elsewhere. The responses of 21 providers (out of 429) have been scaled up to represent the whole sector. 

It is difficult to identify what has been included in other income, as institutions have not specified. 

Further Education - 2020

The number of international students in Further Education (FE) has been estimated using Home Office visa application data (opens in a new tab). In 2020, 2,039 visa applications were sponsored by tertiary, Further education or other colleges. This data is only submitted by non-EU applicants, and therefore does not include the number of EU students studying at FE providers. This means our figures will not fully capture this component of the value of education exports. Figures from 2017 onwards have been retrospectively updated following an error identified during quality assurance.

For this publication, application data was needed for the calendar year 2020, however, due to data issues it has not been possible to breakdown the numbers of applications for Further Education in Quarter 4 2020 (opens in a new tab). Instead, we use the number of applications in Quarter 4 2019 as a proxy. 

The volume figures are revised downwards to reflect the number of applications that are granted. This is estimated based on the proportion of Tier 4 applications (opens in a new tab) granted, which will include students in other education sectors, not just FE. 

An estimated 98 per cent of visa applications were granted. Using this method, approximately 10,900 non-EU students were estimated to be studying at FE colleges in 2020. 

Fee expenditure

The average value of tuition fees for international FE students is estimated using a survey conducted by the Association of Colleges (opens in a new tab)

Living expenditure 

It is assumed that the weekly living expenditure for FE international students is the same as for HE students. The course duration is assumed to be 36 weeks. To calculate both fees and living expenditure for the 2020 calendar year, migration data (opens in a new tab) for the first three quarters of 2020 were used, as well as fourth quarter data for 2019. Due to the lack of data availability for quarter four in 2020, it has been assumed that fourth quarter data for 2019 and 2020 would be similar in value.

Other income

This estimate is based on a London Economics’ survey of Tier 4 sponsors. FE colleges were asked to state what other income they receive that is not covered elsewhere. The responses of 21 providers (out of 429) have been scaled up to represent the whole sector. 

It is difficult to identify what has been included in other income, as institutions have not specified. 

Further Education - 2021

The number of international students in Further Education (FE) has been estimated using Home Office visa application data[1] (opens in a new tab). This data is only submitted by non-EU applicants, and therefore does not include the number of EU students studying at FE providers. This means our figures will not fully capture this component of the value of education exports. 

The volume figures are revised downwards to reflect the number of applications that are granted. This is estimated based on the proportion of Tier 4 applications granted, which will include students in other education sectors, not just FE[2] (opens in a new tab)

An estimated 98 per cent of visa applications were granted. Using this method, approximately 10,360non-EU students were estimated to be studying at FE colleges in 2021. 

Fee expenditure

The average value of tuition fees for international FE students is estimated using a survey conducted by the Association of Colleges[3] (opens in a new tab). Data for the 2021/22 academic year was unavailable, therefore this figure is assumed constant from the 2020/21 academic year.

Living expenditure 

It is assumed that the weekly living expenditure for FE international students is the same as for HE students. The course duration is assumed to be 36 weeks. To calculate both fees and living expenditure for the 2021 calendar year, migration data[4] (opens in a new tab) for the first three quarters of 2021 were used, as well as fourth quarter data for 2020. Due to the lack of data availability for quarter four in 2021, it has been assumed that fourth quarter data for 2020 and 2021 would be similar in value.

Other income

This estimate is based on a London Economics’ survey of Tier 4 sponsors. FE colleges were asked to state what other income they receive that is not covered elsewhere. The responses of 21 providers (out of 429) have been scaled up to represent the whole sector. 

It is difficult to identify what has been included in other income, as institutions have not specified. 
 

[1] (opens in a new tab) In 2021, 2,039 visa applications were sponsored by tertiary, Further education or other colleges https://www.gov.uk/government/collections/immigration-statistics-quarterly-release (opens in a new tab), sponsorship tables.

[2] (opens in a new tab) In 2021 an estimated 98% of ’Tier 4 – general student (main applicant)’ visa applications were granted. See visas-summary-dec-2021-tables.ods (live.com) (opens in a new tab) for more detail as to how this figure was calculated.

[3] (opens in a new tab) AoC-International-Survey-Report-2020-1.pdf (d4hfzltwt4wv7.cloudfront.net) (opens in a new tab)

[4] (opens in a new tab)Immigration statistics data tables, year ending December 2021 - GOV.UK (www.gov.uk) (opens in a new tab) 

Further Education - 2022

Further education 

The number of international students in Further Education (FE) has been estimated using Home Office visa application data[1] (opens in a new tab) which since 2021 has also included EU applicants. A limitation of using visa data for EU students is that it may underestimate the number studying at FE providers, given that some EU domiciled students may have settled status and therefore do not require a visa.

The total applications figure is revised downwards to only reflect the number of applications that are granted. This is estimated based on the proportion of Tier 4 applications granted, which will include students in other education sectors, not just FE[2] (opens in a new tab). In 2022, an estimated 98 per cent of visa applications were granted. Using this method, approximately 16,650 non-EU students were estimated to be studying at FE colleges in 2022 in the UK.

Fee income

The estimated international fees per FE student are reported annually in the International Survey Report published by the Association of Colleges[3] (opens in a new tab). Under the current method, this figure has been multiplied by the number of international FE students (as calculated using the method above) to estimate total international fee income for FE.  

The new method for estimating FE tuition fee income from international students is to directly take the figure reported under the category IE-1f-3 International students - fee income in the Education and Skills Funding Agency’s (ESFA) annual college accounts data[4] (opens in a new tab). ESFA data covers only English FE colleges, however no further adjustment is made to the figure as over 80% of all FE colleges are in England[5] (opens in a new tab) and we believe this method to provide an adequate proxy for the value of international FE fees in the UK.

Living expenditure 

Weekly living costs for FE international students is calculated in a similar way to HE international students.  Weekly living expenditure of FE students is assumed to be identical to HE students, the most recent estimates being derived from the Student Income and Expenditure Survey (SIES) for the 2021/22 academic year [6] (opens in a new tab). These estimates have been uprated by inflation for 2022/23.

FE international students are assumed to stay in the UK for 36 weeks, as this is the standard FE course length. For the total value of living cost expenditure, the average weekly spend is multiplied by the course length and then multiplied by the total number of international FE students.

Other overseas FE income

The current method to calculate other overseas FE income is based on London Economics’ research,[7] (opens in a new tab) which used the survey responses of 21 Tier 4 providers to produce a grossed-up estimate for all FE providers. The responses have been scaled up to represent the whole sector and the total is annually uprated by inflation.

Given the significant uncertainties that now exist around the true figure, coupled with the risks of double counting and including revenue that may not relate to education related exports, we have decided to remove this income stream from our 2022 estimates.

Independent Schools - 2019

These estimates are based on the Independent Schools Council (ISC) Annual Census (opens in a new tab) This provides estimates of the number of EU and non-EU students studying at member schools. 

Since not all EU and non-EU student study at ISC member schools, Department for Education data on independent schools (opens in a new tab) has been used together with ISC data to identify the number of non-UK students studying at British Independent Schools. 

Based on ISC data, 92 per cent of students are identified as boarders. Using this figure, it is possible to estimate the course fees and living expenditure of international students studying at independent schools. 

No estimate for the value of living expenditure for day pupils has been produced as there is no appropriate data source for this information. 

Independent Schools - 2020

These estimates are based on the Independent Schools Council (ISC) Annual Census (opens in a new tab). This provides estimates of the number of EU and non-EU students studying at member schools. 

Since not all EU and non-EU student study at ISC member schools, Department for Education data on independent schools (opens in a new tab) has been used together with ISC data to identify the number of non-UK students studying at British Independent Schools. 

Based on ISC data, 91 per cent of students are identified as boarders. Using this figure, it is possible to estimate the course fees and living expenditure of international students studying at independent schools. 

No estimate for the value of living expenditure for day pupils has been produced as there is no appropriate data source for this information. 

Independent Schools - 2021

These estimates are based on the Independent Schools Council (ISC) Annual Census[1] (opens in a new tab) This provides estimates of the number of EU and non-EU students studying at member schools. 

Since not all EU and non-EU student study at ISC member schools, Department for Education data on independent schools[2] (opens in a new tab) has been used together with ISC data to identify the number of non-UK students studying at British Independent Schools. 

Based on ISC data, 91 per cent of students are identified as boarders. Using this figure, it is possible to estimate the course fees and living expenditure of international students studying at independent schools. 

No estimate for the value of living expenditure for day pupils has been produced as there is no appropriate data source for this information. 

[1] (opens in a new tab)https://www.isc.co.uk/research/annual-census/ (opens in a new tab)

[2] (opens in a new tab) https://www.gov.uk/government/collections/statistics-school-and-pupil-numbers (opens in a new tab)

Independent Schools - 2022

Estimates of export revenues are based on the Independent Schools Council (ISC) Annual Census[8] (opens in a new tab) that provides estimates of the number of EU and non-EU students studying at member schools. 

Since not all EU and non-EU students’ study at ISC member schools, the Department for Education’s data on independent schools[9] (opens in a new tab) has been used together with ISC data to identify the number of non-UK students studying at British Independent Schools in the UK.

Based on ISC data for 2022/23, 92 per cent of students are identified as boarders. The report also provides information on the average termly fees for boarders, the day fee for boarding schools and the day fee for day schools. Using this information, it is possible to estimate the total value of course fees of international students studying at independent schools. No estimate for the value of living expenditure for day pupils has been produced as there is no appropriate data source for this information. 

English Language Training - 2019

All estimates for the value of English Language Training (ELT) in the UK are obtained from the Study Travel Magazine (opens in a new tab), which publishes a Global Market Report each year. This report estimates the revenue generated (from tuition fees and living expenditure) by ELT in the UK. In 2019, Study Travel Magazine survey estimated UK revenue from the English Language market was $2,683,040,353, which is £2,119,602,000 (using the survey’s quoted of exchange rate £0.790 to the dollar). It is assumed that all ELT delivered in the UK will be for international students, so all revenue can be counted as an export.

The ELT market (opens in a new tab) is made up of public and private providers. State sector members have not be included due to risk of double counting. In 2012, 86 per cent of ELT providers were private providers, the remainder were public providers. As such, the Global Market Report revenue figure for the UK has been reduced by 14 per cent to reflect the risk of double counting public providers in FE estimates. 

English Language Training - 2020

All estimates for the value of English Language Training (ELT) in the UK are obtained from the Study Travel Magazine, which publishes a Global Market Report (opens in a new tab) each year. This report estimates the revenue generated (from tuition fees and living expenditure) by ELT in the UK. In 2020, Study Travel Magazine survey estimated UK revenue from the English Language market was $686,930,559, which is £,542,675,142 (using the 2019 survey’s quoted of exchange rate £0.790 to the dollar, the 2020 exchange rate was not available at time of publication). It is assumed that all ELT delivered in the UK will be for international students, so all revenue can be counted as an export.

The ELT market (opens in a new tab) is made up of public and private providers. State sector members have not been included due to risk of double counting. In 2012, 86 per cent of ELT providers were private providers, the remainder were public providers. As such, the Global Market Report revenue figure for the UK has been reduced by 14 per cent to reflect the risk of double counting public providers in FE estimates. 

English Language Training- 2021

All estimates for the value of English Language Training (ELT) in the UK are obtained from the Study Travel Magazine, which publishes a Global Market Report each year[1] (opens in a new tab). This report estimates the revenue generated (from tuition fees and living expenditure) by ELT in the UK[2] (opens in a new tab). It is assumed that all ELT delivered in the UK will be for international students, so all revenue can be counted as an export.

The ELT market is made up of public and private providers[3] (opens in a new tab). In 2012, 86 per cent of ELT providers were private providers, the remainder were public providers. As such, the Global Market Report revenue figure for the UK has been reduced by 14 per cent to reflect the risk of double counting public providers in FE estimates.

[1] (opens in a new tab) Direction: Global Market Report - StudyTravel Network (opens in a new tab)

[2] (opens in a new tab) In 2021, Study Travel Magazine survey estimated UK revenue from the English Language market was $ 2,749,820,322, which is £663,035,000 (using the 2019 survey’s quoted of exchange rate £0.790 to the dollar, the 2020 and 2021 exchange rate were not available at time of publication).

[3] (opens in a new tab)englishuk.com/uploads/assets/intelligence/2022/English_UK_Student_Statistics_Report_2022_Exec_Summary.pdf (opens in a new tab)– State sector members have not been included due to risk of double counting.

English Language Training - 2022

The current method for estimating the value of English Language Training (ELT) in the UK has used information from the Study Travel Magazine, which publishes a Global Market Report each year[1] (opens in a new tab). This report estimates the revenue generated (from tuition fees and living expenditure) by ELT in the UK. It is assumed that all ELT delivered in the UK will be for international students, so all revenue can be counted as exports.

The ELT market is made up of public and private providers[2] (opens in a new tab). In 2022, 90% of ELT providers were identified as private providers. As such, the Global Market Report revenue figure for the UK was reduced by 10 per cent to reflect the risk of double counting public providers in FE estimates. 

As part of the new methodological approach, estimates will now be based on the 2018 International Passenger Survey (IPS) published by Visit Britain (2020)[3] (opens in a new tab) as this is regarded as a more robust source of information. This report estimated the average ELT student to spend £1,532 over 19 days which equates to an estimated weekly spend of £564 for each student week. This figure is then adjusted for inflation and multiplied by the number of student weeks supplied by English UK's private sector membership data[4] (opens in a new tab).

Education Products and Services - 2019

Education related publishing 

Education related publishing covers school, ELT and academic and professional books that are published and exported overseas, either physically or digitally. 

The Publishing Association (PA) collects data on the sales of members and non-members. This data is scaled up to produce an estimate for the whole sector.  

Education related equipment

Education-related equipment includes either physical products or software supplied to customers in the education sector. This data is collected through a survey by the British Educational Suppliers Association (BESA). 

Education related broadcasting 

These estimates are based on publicly available figures from annual reports from the BBC, Channel 4, and the Open University; where this data is not available, the figures are assumed constant from the previous year as with the BBC education related broadcasting figure for 2019. These broadcasters account for the majority of education-related broadcasting. 

Using annual accounts and OFCOM reports, it is possible to estimate education related broadcasting revenue. A London Economics report assumes that 10 per cent of this broadcasting revenue is from exports. This figure has been applied to calculate the revenue repatriated to the UK from education related broadcasting. 

Education Products and Services - 2020

Education related publishing 

Education related publishing covers school, ELT and academic and professional books that are published and exported overseas, either physically or digitally. 

The Publishing Association (opens in a new tab) (PA) collects data on the sales of members and non-members. This data is scaled up to produce an estimate for the whole sector.  The data for 2020 was inaccessible, therefore the 2019 figure was adjusted for inflation to get an estimate for 2020.

Education related equipment

Education-related equipment includes either physical products or software supplied to customers in the education sector. This data is collected through a survey by the British Educational Suppliers Association (BESA (opens in a new tab)). 

Education related broadcasting 

These estimates are based on publicly available figures from annual reports from the BBC (opens in a new tab), Channel 4 (opens in a new tab), and the Open University (opens in a new tab); where this data is not available, the figures are assumed constant from the previous year as with the BBC education related broadcasting figure for 2019 and 2020. These broadcasters account for the majority of education-related broadcasting. 

Using annual accounts and OFCOM (opens in a new tab)reports, it is possible to estimate education related broadcasting revenue. As OFCOM data on broadcasting revenue was not available for both 2019 and 2020, figures for these years have been assumed constant from 2018.

A London Economics report assumes that 10 per cent of this broadcasting revenue is from exports. This figure has been applied to calculate the revenue repatriated to the UK from education related broadcasting. 

Education Products and Services - 2021

Education Products and Services

Education related publishing 

Education related publishing covers school, ELT and academic and professional books that are published and exported overseas, either physically or digitally. 

The Publishing Association (PA)[1] (opens in a new tab) collects data on the sales of members and non-members. This data is scaled up to produce an estimate for the whole sector. As data is behind a paywall, direct contact with the PA was needed to access the data.

Education related equipment

Education-related equipment includes either physical products or software supplied to customers in the education sector. This data is collected through a survey by the British Educational Suppliers Association (BESA)[2] (opens in a new tab). This figure has been kept constant from 2020 due to inability to access data directly from the source providers.

Education related broadcasting 

These estimates are based on publicly available figures from annual reports from the BBC[3] (opens in a new tab), Channel 4[4] (opens in a new tab), and the Open University[5] (opens in a new tab); where this data is not available, the figures are assumed constant from the previous year as with the BBC education related broadcasting figure for 2019, 2020 and 2021.. These broadcasters account for the majority of education-related broadcasting. 

Using annual accounts and OFCOM reports[6] (opens in a new tab), it is possible to estimate education related broadcasting revenue. As OFCOM data on broadcasting revenue was not available for 2019, 2020, and 2021 figures for these years have been assumed constant from 2018.

A London Economics report assumes that 10 per cent of this broadcasting revenue is from exports. This figure has been applied to calculate the revenue repatriated to the UK from education related broadcasting. 

[1] (opens in a new tab) Homepage - Publishers Association (opens in a new tab)

[2] (opens in a new tab) The voice of UK education suppliers - BESA (opens in a new tab)

[3] (opens in a new tab)bbc.co.uk/aboutthebbc/documents/ara-2022-23.pdf (opens in a new tab)

[4] (opens in a new tab) assets-corporate.channel4.com/_flysystem/s3/2022-07/Channel 4 - Annual Report 2021 - FINAL %28Accessible%29_0.pdf (opens in a new tab)

[5] (opens in a new tab) OPEN UNIVERSITY WORLDWIDE LIMITED filing history - Find and update company information - GOV.UK (company-information.service.gov.uk) (opens in a new tab)

[6] (opens in a new tab) Ofcom's second Performance Report on the BBC: Interactive data - Ofcom (opens in a new tab)

Education Products and Services - 2022

Education related publishing 

Education related publishing covers school, ELT and academic and professional books that are published and exported overseas, either physically or digitally. 

Currently, the DfE obtain data for this category from the Publishers Association (PA)[1] (opens in a new tab), who collect data on the sales of members and non-members. As the data is behind a paywall, direct contact with the PA has been needed to access the data.

For the new method, the Publishers Association have also provided information on the value of exported subscriptions to academic journals (print and digital). 

Education related equipment

Education-related equipment includes either physical products or software supplied to customers in the education sector. This data has been collected through a survey by the British Educational Suppliers Association (BESA)[2] (opens in a new tab).

BESA have provided the DfE with updated figures for 2021 and 2022. However, due to changes in BESA’s methodological approach, these figures are not directly comparable with the data BESA provided prior to 2021. 

Education related broadcasting 

These estimates have been based on publicly available figures from annual reports from the BBC[3] (opens in a new tab), Channel 4[4] (opens in a new tab), and the Open University[5] (opens in a new tab), based on assumptions about the proportion of total revenue that can be attributed to programming which has an educational content. These organisations account for most education related broadcasting. 

For the new method we will be using the reported export figures of factual content as published in the annual UK TV Export Report published by Pact[6] (opens in a new tab) as we consider this a more comprehensive source of information.

Qualification awarding bodies

Non-UK income is estimated from the annual accounts of AQA[7] (opens in a new tab), Cambridge Assessment[8] (opens in a new tab), City and Guild[9] (opens in a new tab) and Edexcel (Pearson). Non-UK income for City and Guild has been estimated as 10% of the total income from Educational Services. Since the merger of Cambridge Assessment and Cambridge Press, their published accounts no longer present total revenue figures for Cambridge Assessment alone. For 2021 and 2022, assessment exports attributable to Cambridge University Press & Assessment were provided directly by them. 

Under the current method, revenue figures for Edexcel have been uprated by inflation as Pearson do not report Edexcel separately. The new method removes these estimates for Edexcel, as it is unclear whether these figures now accurately reflect their current position. 

Transnational Education Activity - 2019

Higher Education 

The number of HE TNE students enrolled at UK institutions overseas can be identified from HESA aggregate Offshore Records (AOR). 

The Department for Business, Innovation and Skills (BIS) conducted research (opens in a new tab)in 2012/13 looking at the average student revenue from HE TNE students. The estimates for HE TNE have been produced by multiplying the average revenue figures by TNE enrolments for 2019. 2019 figures are calculated by weighting 18/19 and 19/20 academic years.

Further education

The estimates for TNE income for FE colleges is based on a London Economics Survey of Tier 4 sponsors. This estimate was based on a small number of responses (23) and scaled up to represent the sector. A GDP deflator has been applied to estimate the value in 2019. 

Schools 

We are currently reviewing this figure and the methodology behind it, as such our estimate has a significant level of uncertainty associated with it. We have uplifted last year’s total revenue received by schools who deliver some part of the curriculum to students outside an English-speaking country by inflation and converted to sterling, using rates published by HMRC, to be consistent with previous iterations of this publication. As before, an arbitrary 10 per cent of the revenue from these activities is estimated to be repatriated to the UK. This proportion is not based on any empirical evidence. 

English Language Training

This figure is based on accounts published by the British Council and Pearson, who report on the income generated from activity that develops a wider knowledge of the English Language. It is assumed that 10 per cent of the income generated from ELT overseas activity from the British Council and Pearson is repatriated to the UK. 

Transnational Education Activity - 2020

Higher Education 

The number of HE TNE students enrolled at UK institutions overseas can be identified from HESA aggregate Offshore Records (AOR). 

The Department for Business, Innovation and Skills (BIS) conducted research (opens in a new tab)in 2012/13 looking at the average student revenue from HE TNE students. The estimates for HE TNE have been produced by multiplying the average revenue figures by TNE enrolments for 2020. 2020 figures are calculated by weighting 19/20 and 20/21 academic years.

Further education

The estimates for TNE income for FE colleges is based on a London Economics Survey of Tier 4 sponsors. This estimate was based on a small number of responses (23) and scaled up to represent the sector. A GDP deflator has been applied to estimate the value in 2020. 

Schools 

We are currently reviewing this figure and the methodology behind it, as such our estimate has a significant level of uncertainty associated with it. We have uplifted last year’s total revenue received by schools who deliver some part of the curriculum to students outside an English-speaking country by inflation and converted to sterling, using rates published by HMRC, to be consistent with previous iterations of this publication. As before, an arbitrary 10 per cent of the revenue from these activities is estimated to be repatriated to the UK. This proportion is not based on any empirical evidence. 

English Language Training

This figure is based on accounts published by the British Council and Pearson, who report on the income generated from activity that develops a wider knowledge of the English Language. It is assumed that 10 per cent of the income generated from ELT overseas activity from the British Council and Pearson is repatriated to the UK. 

Transnational Education Activity - 2021

Higher Education 

The number of HE TNE students enrolled at UK institutions overseas can be identified from HESA aggregate Offshore Records (AOR). 

The Department for Business, Innovation and Skills (BIS) conducted research in 2012/13 looking at the average student revenue from HE TNE students[1] (opens in a new tab). The estimates for HE TNE have been produced by multiplying the average revenue figures by TNE enrolments for 2021[2] (opens in a new tab)

Further education

The estimates for TNE income for FE colleges is based on a London Economics Survey of Tier 4 sponsors. This estimate was based on a small number of responses (23) and scaled up to represent the sector. A GDP deflator has been applied to estimate the value in 2021. 

Schools 

We are currently reviewing this figure and the methodology behind it, as such our estimate has a significant level of uncertainty associated with it. We have uplifted last year’s total revenue received by schools who deliver some part of the curriculum to students outside an English-speaking country by inflation and converted to sterling, using rates published by HMRC, to be consistent with previous iterations of this publication. As before, an arbitrary 10 per cent of the revenue from these activities is estimated to be repatriated to the UK. This proportion is not based on any empirical evidence. 

English Language Training

This figure is based on accounts published by the British Council and Pearson, who report on the income generated from activity that develops a wider knowledge of the English Language. It is assumed that 10 per cent of the income generated from ELT overseas activity from the British Council and Pearson is repatriated to the UK. 

Early Years 

This figure is based on the accounts from BusyBee’s which have been identified as the main provider of UK Early Year’s education overseas. Overseas revenue is extracted directly from the company accounts[3] (opens in a new tab). To estimate export revenue, the revenue generated from the UK is subtracted from overseas revenue, of which 10% is assumed to be repatriated back to the UK.

[1] (opens in a new tab) BIS Research Paper on the value of TNE. (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/387910/bis-14-1202-the-value-of-transnational-education-to-the-uk.pdf (opens in a new tab)). 

[2] (opens in a new tab) 2021 figures are calculated by weighting 20/21 and 21/22 academic years.

[3] (opens in a new tab) EAGLE MIDCO LIMITED filing history - Find and update company information - GOV.UK (company-information.service.gov.uk) (opens in a new tab)

Transnational Education Activity - 2022

Higher education 

The current approach has been based on research commissioned by the Department for Business, Innovation and Skills (BIS) in 2012/13 on the value of TNE activity in the UK. Using the report’s estimate of average student revenue from HE TNE students[1] (opens in a new tab), an aggregate figure has been calculated by multiplying the average revenue figure (uprated to 2022 prices) by total TNE enrolments as published in HESA’s Aggregate Offshore Records (AOR) (figure 12)[2] (opens in a new tab)

For the new method, HE TNE enrolments are identified from the same source as before (figure 12[3] (opens in a new tab)), however for increased accuracy only students registered at a UK HE provider are included. The new method also excludes students in distance, flexible or distributed learning, since these students are already accounted for under the HE asynchronous online learning category of exports (see p.11). 

To estimate the fees associated with HE TNE students, HESA publishes aggregate fee income data of TNE activity for providers in devolved administrations only (table 6)[4] (opens in a new tab). An average, per-student fee revenue is calculated using this data and then scaled up to represent all UK HE TNE students by multiplying by the total number of TNE students.

Further education

The current method to calculate FE TNE income is based on London Economics’ research,[5] (opens in a new tab) which used the survey responses of 23 Tier 4 providers to produce a grossed-up estimate for all FE providers. Figures since 2008/09 have been annually uprated by inflation. 

The new method for estimating FE tuition fee income from international students is to directly take the figure reported under the category IE-1g-6 International overseas delivery in the Education and Skills Funding Agency’s (ESFA) annual college accounts data[6] (opens in a new tab). ESFA data covers only English FE colleges, however no further adjustment is made to the figure as over 80% of all FE colleges are in England[7] (opens in a new tab) and we believe this method to adequately capture the value of FE TNE exports in the UK.

Schools 

The current method has continued to uplift the previous year’s total revenue received by schools who deliver some part of the curriculum to students outside an English-speaking country by inflation and converted to sterling, using rates published by HMRC, to be consistent with previous iterations of this publication. As before, an arbitrary 10 per cent of the revenue from these activities has been assumed to be repatriated to the UK. This proportion is not based on any empirical evidence as such our estimate has a significant level of uncertainty associated with it. 

The new method utilises the LSE consulting’s estimates[8] (opens in a new tab) for the fee income of foreign affiliates of British independent schools together with the number of overseas students, to estimate a per student fee figure for 2020. This fee figure is then uprated in line with inflation with the annual student numbers gained from the ISC census. 

Our ambition for future publications is to refine this method to capture this source of export revenue more accurately. 

English language training

This figure is based on accounts published by the British Council[9] (opens in a new tab) and Pearson[10] (opens in a new tab), who report on the income generated from activity that develops a wider knowledge of the English Language. It is assumed that 10 per cent of the income generated from ELT overseas activity from the British Council and Pearson is repatriated to the UK. 

The new method removes this export revenue line as the methodology used to estimate it is no longer judged to be sufficiently robust and evidence-based.

Early years 

This figure is based on BusyBee’s annual financial accounts as they have been identified as the main provider of UK’s early years education overseas. Total revenue is extracted directly from the company accounts[11] (opens in a new tab). To estimate overseas revenue, the revenue generated in the UK is subtracted from total revenue. The current method then assumes that 10% of overseas revenue is repatriated back to the UK as exports.

For the new methodology, following the Manual on Statistics of International Trade in Services (MSITS)[12] (opens in a new tab), the entire overseas "sales of service" or revenue of BusyBee will be counted as exports. 

Annexes

Retrospective data changes

The HESA data used to calculate revenues generated from education related exports and transnational education activities may be subject to revision on account of HESA’s fixed data policy, which allows HE providers to amend the data for period after the date it was collected[1] (opens in a new tab). Any revisions in the underlying HESA data may affect the more recent estimates of education export revenues published previously.

Experimental Statistics

These estimates are currently classified as Official Statistics in Development since they are still to be fully developed and rigorously tested to ensure they meet the required standard for national statistics. This is because the data used to compile these estimates come from multiple sources, some with varying quality or limited coverage.

We continue to welcome feedback on the usefulness of the statistics and on the new methodology. We also welcome ideas and suggestions on other available sources of data and information that could be used to inform and improve our estimates of the value of exports in existing and new areas of education related activity.

Aspects which we would like to consider further during the Official Statistics in Development phase include: 

  • coverage – incorporating areas of education related export activity currently excluded or underestimated due to data quality concerns or lack of data 
  • accuracy – refining the assumptions used to improve our overall estimates 
  • explanation – better communication of the limitations of the data sources used 
  • consistency – with other statistics on exports and imports; and 
  • presentation – publishing the data in the right format to meet user needs 

Data Lag

There is currently a two-year lag in the publication due to the number of inputs required to undertake the modelling. This reflects the varying release of the data inputs which means modelling is not uniform across each calendar year. However, there are aims to reduce this two-year lag to a one-year lag. Updates regarding when this will be plausible will be communicated through the publication page.

Help and support

Contact us

If you have a specific enquiry about UK revenue from education related exports and transnational education activity statistics and data:

Higher Education Analysis

Email: he.statistics@education.gov.uk
Contact name: Matt Poullin
Telephone: 07880107283

Press office

If you have a media enquiry:

Telephone: 020 7783 8300

Public enquiries

If you have a general enquiry about the Department for Education (DfE) or education:

Telephone: 037 0000 2288

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