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A contentious new report by the centre-right think tank Policy Exchange has ignited a fierce debate, asserting that UK universities are acting as a "backdoor to unprecedented migration" and urging the government to scrap graduate visas. This alarm call comes amidst a significant 66% increase in international student numbers over the past nine years, raising serious questions about the future sustainability of the UK's higher education sector and its vital contribution to the national economy.
The report, titled "The Purpose of Student Migration," argues that a growing number of individuals are using student visas at "low-ranking universities" as a stepping stone to long-term settlement in the UK, rather than solely for educational pursuits. This trend, it claims, is not only "gaming the system" but also potentially "crowding out" domestic students at some institutions. Policy Exchange recommends the immediate abolition of the Graduate Route visa, which currently allows international students to work in the UK for two years after completing their studies, with an exception only for those pursuing postgraduate research degrees. The government's current proposal to merely reduce this term to 18 months is deemed insufficient.
The Economic Engine: Foreign Students and the UK Exchequer
The implications of such drastic measures for UK universities and the broader economy are profound. International students are not merely attendees; they are a critical financial lifeline for many institutions. Universities UK, representing vice-chancellors, emphatically states that "Every UK resident is £355 a year better off, on average, as a result of the international students universities attract." This substantial figure underscores the direct and indirect economic benefits derived from their presence.
Beyond tuition fees, which often far exceed those paid by domestic students, international students contribute significantly through living expenses, accommodation, retail spending, and supporting local businesses. This injection of capital sustains countless jobs within and beyond the higher education sector, from campus staff and accommodation providers to local shops and restaurants. Without this vital revenue stream, many universities, particularly those not at the very top tier, would face severe financial strain, potentially leading to course closures, staff redundancies, and a diminished capacity for research and innovation.
A Precarious Balancing Act: University Survival Without Foreign Students
The report's recommendation to curb international student numbers, if implemented comprehensively, would force a radical rethink of the funding model for UK universities. Years of stagnant or declining domestic tuition fees, coupled with reductions in government funding, have made international student fees an indispensable pillar of university budgets. If this pillar crumbles, universities would be compelled to either significantly increase domestic fees, which is politically sensitive, or seek substantial new government investment, which seems unlikely in the current fiscal climate.
Furthermore, the "soft power" Britain gains from attracting international students is, as Universities UK rightly points out, "immeasurable." These students often return to their home countries as ambassadors for British values, culture, and business, fostering invaluable international relationships and trade links. Severing this connection could have long-term geopolitical and economic repercussions for the UK.
The Data Behind the Debate
Policy Exchange's report highlights stark figures: international student numbers surged from 442,225 in 2014/15 to 732,285 in 2023/24. Worryingly, the report states that in 2023, two in five (40%) of those who arrived on student visas transitioned to a different visa type within a year, a significant jump from just 3% in 2019. It also notes that 15% of all asylum claims in 2024 (16,000 individuals) originated from those who initially arrived on student visas.
The report also scrutinises the profile of those utilising the Graduate Route visa, suggesting a disproportionate number are taking short postgraduate courses at lower-ranked universities. Only 10% of graduates from globally top 200 UK universities obtained a graduate visa, compared to 30% from universities ranked 800 or more globally. The median income for those on the visa was a modest £21,000, with only 30% reportedly securing graduate-level roles.
While acknowledging the increase in international undergraduates at Oxford (167 places between 2010 and 2023), the report also points to a simultaneous fall of 294 domestic undergraduates. Oxford University, however, states that the acceptance rate of international students has decreased during that period.
Finding a Path Forward
The government's previous measure, implemented in January 2024, to ban most international students from bringing dependants, is deemed insufficient by the report. Zachary Marsh, the author, insists that "UK universities must return to the business of selling education, not immigration," arguing for a stronger clampdown on those "gaming the system."
However, Universities UK maintains that the Graduate Route is "essential" for the UK to remain competitive, emphasizing that it is a "time limited visa which does not lead to a permanent path to settlement." The challenge for policymakers lies in striking a delicate balance: addressing concerns about genuine student migration versus those seeking a "backdoor" route to settlement, while simultaneously safeguarding the financial health and global standing of one of the UK's most valuable assets – its world-class higher education sector. The coming months will undoubtedly see intensified debate as the government grapples with these competing pressures.
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