Introduction:
In many Western countries, immigration has been a contentious and multifaceted issue that impacts all aspects of a nation, including social, political, health, and economic realms. However, it’s important to note that immigration is not a monolithic concept. Individuals migrate to different countries for a myriad of reasons, often driven by the pursuit of a better future. These reasons can range from seeking better educational opportunities to escaping political unrest or a climate disaster. The nature of and reasons for immigration and immigrants’ contributions to the host country vary significantly. Yet, the politicization of immigration by both the political right and left often results in a one-size-fits-all approach, hindering the development of effective policies that could lead to balanced and rational action plans.
In this article, I will discuss a specific aspect of immigration in the UK related to international students who come to study at UK universities. The number of international students in the UK has sharply increased in recent years. This growth is attributed to the introduction of the Graduate visa route, which allows overseas nationals to remain in the UK for two years after completing a degree course in the UK.
Background
In the early 2000s, the Labour government introduced the ‘Post Study Work Visa’ scheme – commonly known as PSW – allowing non-EU graduates to remain in the UK for two years after their studies. This initiative aimed to support the growth of the UK higher education sector while addressing the shortage of skilled and semi-skilled labor. However, in 2011, the Conservative Party, upon returning to power, abolished this policy. Theresa May, the then Home Minister who later assumed the office of Prime Minister in 2016, played a key role in changing the rule. The policy change occurred alongside rising tuition fees for domestic undergraduate students, raising concerns within the higher education sector.
Brexit: the first blow
Despite these challenges, many universities continued to attract students from China, benefiting from the country’s thriving economy and demand for Western degrees. Additionally, the sector welcomed many students from EU member states and received diverse forms of EU research funding, contributing significantly to its global prominence and financial stability. However, the sector had a setback after the 2016 Brexit referendum. The UK government’s stubborn negotiation approach for a Brexit deal with the EU ignored the interests of the higher education sector. Furthermore, in the post-Brexit period, students from the EU member states required visas to study in the UK and pay international tuition fees, significantly higher than what they would have been required to pay before Brexit.
Brexit also led to a significant setback in other sectors, such as retail, hospitality, manufacturing, and the gig economy. This impact was felt because EU member states had been a major source of young semi-skilled and skilled workers before Brexit happened. Before the Brexit referendum, politicians favoring leaving the EU argued that Brexit would allow the UK to pursue opportunities beyond the EU. The policymakers found it opportune to use overseas students to fill the vacuum created by the departure and/or a lack of availability of the EU workforce. These factors, combined with the UK’s need for economic growth and its universities, led the UK government to reintroduce the post-study work visa, now known as the Graduate visa route. Although there are some minor differences, this visa scheme is essentially a revival of the old Post-Study Work (PSW) scheme. Therefore, the promise made by Theresa May in 2012 to reduce net immigration was abandoned as the government made desperate attempts to support the economy. It was very much a sticking plaster policy. The anti-immigration narrative was used for the convenience of the Government policymakers.
After the Brexit deal, the pandemic significantly impacted the higher education sector. The sector experienced a decline in revenue from campus-related businesses such as shops and accommodation, as well as a lower-than-expected number of international students. Despite these challenges, the sector demonstrated resilience. There was a slight increase in tuition fees in the academic years 2019-20 and 2020-21. However, by the 2022-23 academic year, universities had returned to business as usual.
Home tuition fees and post-COVID inflation
The UK higher education sector facing challenges in 2021-22 and 2022-23 academic years, especially with the impact of COVID-19 and subsequent high inflation and cost of living crisis. One major issue is that the home tuition fees have not been adjusted for a long time. Originally set at £9,000 for entry in 2012, they have only been increased once since then. A recent analysis by DataHE shows that in real terms, these fees are now worth only £6,150, which is a reduction of 32%. Inflation-adjusted, these fees would now be £13,530. As a result, universities rely on international student fees to cover expenses, support growth, maintain global rankings, attract and retain quality academics, and provide world-class teaching and research facilities.
Desperate measures of a struggling government
As the Conservative Government entered the final year of its term, the country’s economy was still struggling from the previous Prime Minister Liz Truss’s economic policies, resulting in high inflation and low economic growth. Facing declining popularity and pressure from the party’s far-right faction, Prime Minister Rishi Sunak’s government took steps to reduce net immigration numbers. The government decided to decrease the number of international students, which had significantly increased in the 2022-23 academic year. Starting from 1 January 2024, stringent measures were introduced, barring most international students from bringing family members to the UK. The government claimed that this was part of their ongoing efforts to reduce migration and prevent abuse of the immigration system.
MAC Report
The government measures had an impact on international student recruitment, particularly for postgraduate courses. There was uncertainty about the future of the Graduate visa route, with some Conservative Party leaders, including former Home Secretary Suella Braverman, calling for its complete abolition. In the autumn of 2023, the government tasked the Migration Advisory Committee (MAC) with reviewing whether the Graduate visa route was being abused on the following three grounds:
1) Overseas students using the scheme as a ‘backdoor’ to permanently live and work in the UK
2) Universities are attracting international students by promoting the opportunity to live and work in the UK, rather than emphasizing the academic quality of the courses.
3) The Increased number of international students with allegedly relaxed entry requirements is leading to a lower number of local students being unable to enroll in their desired universities.
The MAC report, published in May 2024, confirmed that the committee did not find conclusive evidence to support any of these claims. Up until June (when this article was written), the government has not made any clear decisions about whether the scheme will remain in its current form or if there will be further changes. With a General Election scheduled for July, the new government will be responsible for making a decision on this issue. Meanwhile, universities have lost valuable time for September admissions. Most universities have experienced significant reduction in overseas student numbers.
International students’ contribution to the growth of the higher education sector
The number of international students in the UK has doubled in the span of two years, from 2020 to 2022. UK universities assert that this increase was crucial for them to address the financial challenges they were facing.
Without a significant government initiative to reform the funding framework of the UK higher education sector, it will be exceptionally hard for many UK universities to remain viable without a consistent flow of income from international students.
International students’ contributions to the economy
International students support universities and significantly impact the country’s economy. A recent study from the UK Universities (International students boost UK economy by £41.9 billion (universitiesuk.ac.uk) shows that the presence of international students in the 2021/22 academic year contributed a substantial £41.9 billion to the UK economy.
Some key points to note are:
The economic benefit from international students increased from £31.3 billion to £41.9 billion between 2018/19 and 2021/22.
Specific cities such as Glasgow, London, Sheffield, Nottingham, and Newcastle have seen significant financial contributions from international students.
On average, each of the 650 parliamentary constituencies in the UK benefits by £58 million (per constituency) due to international students, which translates to approximately £560 per citizen.
Even when factoring in dependents and other costs, international students make a substantial positive impact as net contributors to the UK economy.
Conclusion
Numerous universities in the UK support local businesses and communities, providing opportunities for social mobility to low-income and underprivileged families. Additionally, the UK is home to some of the world’s leading universities that drive research and innovation in various cutting-edge fields, contributing to the progress of knowledge and civilization. However, the politicization of immigration and short-term government policies has detrimentally impacted the sustained growth of these universities. In this article, I presented examples of inconsistent government decisions, influenced by populist pressure or short-term economic recoveries. These are counter-productive for the massive higher education sector. While It is important for universities to prioritize quality and avoid uncontrolled growth, including recruiting an excessive number of international students, it is also essential to ensure that the sector is not adversely affected by extremist political agendas such as Brexit and anti-immigration sentiments.
The article is based on the author’s opinions based on research and analysis.
Dr Bidit L. Dey
Associate Professor in International Marketing
Sheffield University Management School (the University of Sheffield), UK
LinkedIn: Bidit Dey | LinkedIn