International Student Migration a ‘Backdoor’ for Migration, Think Tank Warns

The current model of international student migration is not working, a new report suggests.

A general view of a graduation ceremony in England on Oct. 19, 2015. Chris Radburn/PA Media

The current student visa regime for international applicants has become a “backdoor” for migration rather than attracting the “best and the brightest,” a think tank has warned.

A new report by Policy Exchange, released on Wednesday, said a growing number of international students—particularly at lower-tier institutions—are arriving in the UK with little academic ambition.

Instead they are using their visa status to access the UK’s labour market or claim asylum, the report said.

In 2019, just 3 percent of student visa holders moved to a different visa within 12 months of arrival. By 2023, that figure had jumped to 40 percent.

The number of individuals switching directly from student visas to health and care worker visas increased by 560 percent in a single year, from 3,966 in 2022 to 26,200 in 2023.

Meanwhile, 16,000 of those who claimed asylum in 2024 had originally entered the UK on student visas, accounting for 15 percent of all asylum applications that year.

Uneven Benefits and Academic Standards

More than 730,000 overseas students are currently enrolled at UK higher education institutions, making up 23 percent of the total student population.

Domestic fees are capped, but international students pay much higher tuition, and for many institutions, overseas students are essential to their financial survival.

In 2022, the UK government estimated that international students contributed £32.3 billion to the economy through tuition fees and living expenses.

Education Secretary Bridget Phillipson has previously emphasised the government’s support for international students, highlighting their value to universities and the broader economy.

“The UK wouldn’t be the same without them. Arts, music, culture, sport, food, language, humour – international students drive dynamism on so many levels. And of course, their contribution to the British economy is substantial. Each international student adds about £100,000 to our national prosperity,” she said in a speech last year.

However, the Policy Exchange report suggested that the financial benefits are not evenly spread across the sector.

It found that the most prestigious universities—typically those ranked among the global top 200—charge an average of £23,790 per year in international tuition fees and generate a surplus of around £10,400 per student.

By contrast, lower-ranked institutions charge closer to £12,500 annually and generate a much smaller surplus, averaging just £2,900.

Speaking at a Policy Exchange event on Wednesday, shadow education minister Neil O’Brien noted that the fastest growth in international student numbers has occurred in non-Russell Group universities, particularly in one-year postgraduate programmes.

The report raised concerns that many of these lower-tier institutions have become heavily reliant on international tuition income, often offering courses that are less selective and less academically rigorous.

It said that international students in these short-term programmes are more likely to stay in the UK after graduating and enter low-skilled employment, thus contributing less to academia and the economy.

UK Students Being Squeezed Out

One of the key concerns raised is that international students may be displacing domestic applicants.

At Oxford, the number of UK undergraduate acceptances fell by 294 between 2010 and 2023. Over the same period, international acceptances increased by 257.

At Cambridge, domestic places dropped by 114, while international places rose by 329.

According to O’Brien, these figures show international students are increasingly replacing UK students at top universities.

Last year, The Sunday Times alleged that 15 Russell Group universities were admitting students through foundation courses with much lower entry standards than for British students.

Visa Clampdowns and Financial Pressures

Another area of concern has been the large number of dependents arriving alongside international students. Under new rules, introduced last year, only students on postgraduate research courses or those with government scholarships are allowed to bring dependents.

Within a year, dependent visa grants dropped by 85 percent.

The Graduate Route visa, introduced in 2020 to help international students find work after graduation, allowed them to stay in the UK for two years (or three if they’ve completed a doctorate). But the report argued that this route is being misused.

Students from just four countries—India, Nigeria, Pakistan, and China—make up 70 percent of graduate visa holders. Indian students alone account for 42 percent of those on the visa, despite only making up 26 percent of student visa recipients.

In May, the government announced that the graduate visa duration will be reduced from two years to 18 months.

Ministers will also consider introducing a 6 percent higher education levy on tuition fees for international students. The measure has been estimated to raise approximately £600 million a year for the government, with a comparable drop in revenues for universities.

University leaders have warned that these proposals could harm the sector.

Duncan Ivison, vice-chancellor of the University of Manchester, said a 6 percent fee levy could cost his institution £43 million per year by the end of the decade.

“For a sector already teetering on the edge of fiscal implosion, this could be the tipping point,” Ivison warned.

Commenting on the proposed 6 percent levy, O’Brien suggested that the most research-intensive universities should be exempt. He argued that at these institutions, international students play a crucial role in cross-subsidising research, which is a public good the country greatly values.

What the Report Recommends

The report called for a major overhaul of the system.

Key recommendations include limiting the Graduate Route visa to postgraduate research students, raising the required English proficiency level from CEFR B2 to C1, and banning universities from conducting their own English language proficiency assessments.

All applicants would instead need to pass an independent language test.

Another major proposal is a new £1,000 annual International Study Levy, to be paid by the student directly as a visa condition.

The money, expected to raise over £430 million a year, would be reinvested in domestic skills training, scholarships, and apprenticeships.

Head of demography, immigration, and integration at the think tank, David Goodhart, urged to end the marketing of UK universities as a backdoor to long-term migration.

“The failure to address this has meant we have welcomed far too many who have been incentivised to come here for the wrong reasons,” he added.