The spread of coronavirus will cause a reduction of more than 230,000 students enrollment in UK universities. It is also expected to cause financial damage of more than £2.5bn($3.08bn) for these institutions.
The UK universities will suffer a loss of up to £2.5bn($3.08) in the form of grants and school fees raised from students, as students abandon their plans to study in the country. This is according to data released by London Economics for the University and College Union. The economic ramification for such a loss will be huge and most universities will need the government’s support to be able to continue.
Reduction of students in UK universities
The data also showed there will be a shortage of 230,000 international students enrolling in UK universities, with half of them being non-EU. This will result in a loss of £1.51bn ($1.86 bn) from non-EU students, £612 ($755 mn) million from students in the UK, and £350($432mn) million for EU students.
The research analyzed 125 universities and found that 91 of these universities, will face a critical financial problem. This is about three-quarters of the universities that took part in the study.
Universities are currently under lockdown due to the spread of the coronavirus. The study highlighted the vulnerabilities of these institutions amid a crisis such as a pandemic. The reduction of revenue earned by these universities will spiral to other sectors.
Economic ramifications
The study estimated that over 60,000 who rely on these universities will lose their jobs if no financial intervention is provided by the government. These will include university staff and people who work around the communities these universities are located and provide services to students.
A cost of £6 billion will be suffered by the economy if no mitigation is done to help the universities according to the study. There will also be other losses directly linked to the virus such as loss of research team and funding, accommodation fees and conferencing fees.
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