Colleges are being encouraged to expand their education offer overseas, with ministers pledging to slash regulation and support cash flow.
Ministers have today published a new cross-department “International Education Strategy” that aims to grow the value of education exports from the current level of £32.3 billion a year to £40 billion a year by 2030.
Central to the aim is encouraging colleges, universities and schools to seek demand-led ventures overseas. The Department for Education said it will push for long-term relationships rather than “short-term or speculative ventures”.
Colleges have made numerous attempts to run international ventures in countries like India and Saudi Arabia over the past decade, but often had to cut ties due to recruitment struggles and unfavourable payment terms.
Most recent college finance data shows just 7 colleges recorded income generated from overseas delivery in 2023-24.
The new strategy states that government will back education providers seeking to diversify income by removing red tape and giving access to export finance, market intelligence, and the UK’s overseas network.
The Conservative government launched a post-Brexit export strategy for education in 2019, aiming for a £35 billion export value by 2030.
Today’s refreshed strategy states that government will set up an “education sector action group” to work with Professor Sir Steve Smith, the international education champion, colleges and schools to help “unblock” barriers to trade to expand overseas.
Officials said education providers and businesses will develop 100-day action plans with the action group that will identify appropriate and demand-led opportunities abroad and remove regulatory barriers that make overseas operations difficult.
Colleges will still be responsible for seeking approval of any novel transactions that require DfE approval, in line with rules following reclassification of colleges to the public sector in November 2022.
Today’s strategy also reiterated the UK government’s commitment to rejoin the Erasmus+ programme in 2027. The country’s current international placement initiative, the Turing Scheme, will continue for a sixth year until Erasmus is rejoined.
Emma Meredith, the Association of College’s director of skills policy and global engagement, said it was “encouraging” to see colleges recognised in the strategy and the steps to grow their contribution towards the new £40 billion annual export target, adding that there are “excellent and long-standing international partnerships in colleges across the country, with many engaged in student mobility, student recruitment and transnational education”.
However, Meredith said colleges “face a lot of red tape and policy restrictions, causing unnecessary barriers for those looking to expand or to initiate their international offer”.
The AoC will “work with the government to identify and remove these barriers to export and ensure that colleges can fulfil their potential in the international space”.
She added: “For too long, the potential of further education and skills in the education export space has been overlooked. As public sector organisations, colleges must always manage risk and conduct due diligence whilst exploring opportunities that may be appropriate for them.”
Historical low demand from overseas expansions
Colleges have ventured abroad in the past with limited success due to struggles with recruiting students and difficulties of working under short-term agreements.
AoC India, a college partnership network set up by the Association of Colleges to provide UK vocational education and training programmes to India, closed down in 2016 after losing over three-quarters of its members in its four years of establishment.
Multiple colleges have also pulled out of partnerships with Saudi Arabia through its controversial “colleges of excellence” (CoE) scheme over low demand, strict payment terms, delays and short five-year term agreements.
Burton and South Derbyshire College (BSDC) offered vocational courses at a female-only technical education college in Jeddah until 2023 when its partnership ended, though it has continued a reduced operation in the hope of securing a longer-term contract in the near-future.
The college said last year that there were talks of Saudi Arabia offering contracts of 10 years and longer for UK-based colleges that run courses in the country through a new procurement model.
Amrit Virk, BSDC’s assistant principal for marketing, business development and international, told FE Week today that the college “anticipates new contracts will be launched imminently”, adding that the college is “excited about the potential opportunities to work collaboratively in the Kingdom of Saudi Arabia”.
Lincoln College remains the only college to hold a current contract with Saudi Arabia.
Just 7 colleges recorded income generated from overseas delivery in financial year 2023-24, according to DfE data. Lincoln College generated the most (£14.1m), followed by Capital City College (£603k) then South Essex College (£173k).
Education secretary Bridget Phillipson said: “UK education is one of our most valuable exports and this strategy backs the sector to go even further – underlining our commitment to fuel UK growth.
“By expanding overseas, our universities, colleges and education providers can diversify income, strengthen global partnerships and give millions more access to a world-class UK education on their doorstep, all whilst boosting growth at home.
“This strategy and our Plan for Change, will drive growth that delivers for our economy and for communities across the UK, as well as our standing in the world.”
Minister for trade Chris Bryant added that the UK is “on track” grow the sector to £40 billion by 2030, powered by providers driving digital learning, AI enabled innovation and future skills development.
“With a world class system and deep international partnerships, the UK is exceptionally placed to expand its global footprint and ensure that this country’s education continues to set the standard worldwide,” he added.
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