Impact of the Proposed Reduction of the Graduate Route Period on the University Sector | White Paper

In their Immigration White Paper, there is a firm proposal to reduce the period permitted under the Graduate Route from two years to 18 months.

Key Changes and Rationale

The Graduate Route currently allows international students who have completed a degree at a UK university to stay and work, or look for work, for up to two years. The proposed reduction to 18 months is part of a broader strategy to manage immigration more effectively and seemingly to deter international students, thereby reducing net migration numbers.

No real justification has been given for the reduction to 18 months.

When it was introduced in 2021, the Conservative Government thought that the route would:

‘Build on UK Government action to help recruit and retain the best and brightest global talent, as well as opening up opportunities for future breakthroughs in science, technology and research and other world-leading work that international talent brings to the UK.’

The Home Secretary at the time, Priti Patel, said: "The new Graduate Route will mean talented international students, whether in science and maths or technology and engineering, can study in the UK and then gain valuable work experience as they go on to build successful careers.

It demonstrates our global outlook and will ensure that we continue to attract the best and brightest."

The current Government seems to have overlooked the benefits of the Graduate route in providing a route for specialised and skilled international graduates to be retained by the UK, and to support UK businesses in their growth and innovation plans.

MAC recommendations

In May 2024, the Migration Advisory Committee produced a report on the Graduate route which confirmed that they had not found evidence of widespread abuse of the Immigration System under the Graduate route.

Further MAC concluded

"We conclude that the Graduate route is not undermining the integrity of and quality of the UK higher education system. Under the current funding models for higher education across the UK, the Graduate route is helping universities to expand the range of courses offered while making up for financial losses on domestic students and research. It has also contributed to diversifying the range of universities (and thus domestic students) that benefit from the financial contribution international students make."

They confirmed ‘the Graduate route is broadly achieving its objectives and supporting the International Education Strategy. We recommend retaining the Graduate route in its current form’

Despite these recommendations, the White Paper confirms proposals to limit the Graduate route.

Impact on International Students

International students are a vital part of the UK university ecosystem, contributing significantly to the cultural diversity and financial health of institutions.

The reduction in the Graduate Route period may make the UK a less attractive destination for talented international students who are looking to gain work experience and potentially settle in the country. This could lead to a decline in international student enrolments, which would have a direct impact on university revenues, and the breadth of the talent pool coming from UK universities.

Financial Implications for Universities

Universities rely heavily on the fees paid by international students, which are higher than those paid by domestic students. A decrease in international student numbers could result in significant financial shortfalls for many institutions. This, in turn, could affect the quality of education and services provided to all students, as universities may need to cut costs or find alternative revenue sources.

Broader Sectoral Impact

The proposed changes could also have broader implications for the UK's position as a global leader in higher education. The ability to attract and retain top international talent is crucial for maintaining the UK's competitive edge in research and innovation. By reducing the period allowed under the Graduate Route, the UK risks losing out on highly skilled graduates who could opt to study in countries which offer a more attractive graduate visa route.

Conclusion

This proposed reduction is expected to have far-reaching implications for the university sector, affecting both international students and the institutions that host them.