As per government policy, international students coming to the UK must provide evidence that they have sufficient savings to support themselves “for each month of their course (up to nine months),” according to the Home Office.
The level of funds is tied to increases in the maintenance loans available for domestic students, but this hasn’t been updated since 2020.
Under the new rules, students coming to London will have to show evidence of having £1,483 per month, and those planning to study outside of London will need £1,136 per month.
Currently, international students coming to study in London must show evidence of monthly savings of £1,334 and £1,023 outside of London.
“On one hand, it is understandable that the UKVI has decided to increase the maintenance funds requirement for international students to align with rising inflation and the general increase in the cost of living across the UK,” Syed Nooh, Head of global insights and market development at UEA told The PIE.
However, with other more affordable study destinations actively courting international students, “the UK risks positioning itself as a less accessible option, especially for students from lower-income countries,” warned Nooh.
The new requirements, published on September 10, 2024, will apply to students coming to the UK on or after January 2, 2025, and the government has said that it will continue to update the financial requirement regularly in line with inflation and domestic maintenance loan increases.
The requirements will mean that students studying in London for nine months or longer will have to show evidence of £13,348 of total savings when applying for their visa.
According to Nick Skeavington, head of international student recruitment at the University of Exeter, the change is unlikely to have an impact on its own but is part of a string of recent policy changes contributing to a more challenging recruitment landscape.
“It is important to consider [the increased maintenance requirements] in the wider context in terms of changes to the visa policy for dependents, currency and affordability challenges in key markets, especially in West Africa and South Asia, as well as the significant increase in the NHS surcharge this year,” Skeavington told The PIE.
The UK risks positioning itself as a less accessible option, especially for students from lower-income countries
Syed Nooh, UEA
The proof of funds can still be “offset”, allowing students to demonstrate less maintenance funds if they have paid a deposit for their accommodation in the UK, the government said.
Furthermore, if you have been in the UK on another route for at least 12 months on the date of your application, you do not need to show maintenance funds.
Stakeholders agreed on the “necessary alignment with the increased maintenance loans for domestic students” and the importance of “ensuring that students have sufficient financial support … to avoid hardship during their studies,” said Nooh.
According to Flywire global payment network, “recruiting students without sufficient funds to maintain themselves while in the country helps neither students nor providers: students’ education and wellbeing suffer if they come under financial pressure”.
Furthermore, Flywire’s Income Collection Survey found that 30% of providers suffer a student payment default rate of more than 10%, putting the financial viability of institutions at risk.
“Therefore, as the cost of living increases, it is essential that maintenance requirements are reviewed and adjusted to set realistic expectations for international students and give them a chance to thrive in their studies,” a Flywire spokesperson told The PIE.
However, “students from developing countries may find it more challenging to meet these increased financial requirements, potentially leading to a less diverse campus environment,” Nooh warned.
Meanwhile, the NHS surcharge for students applying to study in the UK was increased by 66% to £776 per year on February 6, 2024.
On top of tuition fees, which can be up to three times higher than domestic tuition, international students are also required to pay taxes while working in the UK and pay visa and biometric fees.
