UK post study work opportunities for international students

Transcription

1 All-Party Parliamentary Group on Migration UK post study work opportunities for international students Session Report Published on 24 February 2015 By the All-Party Parliamentary Group on Migration

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3 About the All-Party Parliamentary Group on Migration The All-Party Parliamentary Group on Migration was set up to support the emergence of mainstream, progressive policy debate on migration in the UK parliament. It aims to provide a discussion forum for parliamentarians and act as a source of well-evidenced and independent information on key migration issues. The group s website is Inquiry Committee Paul Blomfield MP (Labour) Chair Richard Bacon MP (Conservative) Greg Mulholland MP (Liberal Democrats) Baroness Prashar (Crossbench) Baroness Warwick (Labour) Acknowledgements We would like to thank all the groups and individuals who submitted written and oral evidence to the inquiry. Where individual case studies have been quoted, all identifying details have been omitted in order to protect anonymity. We would particularly like to thank Jo Attwooll, Nichola Carter, Joy Elliott-Bowman, Nick Entwistle, Raegen Hiles, Charlotte Holloway, Alex Leonhardt, Verity O Keefe, Shreya Paudel and Laura Weidinger for their various contributions to this inquiry. Powers The APPG is an informal cross-party group, registered in the House of Commons as an All- Party Group, and recognised by Parliament. It does not have Select Committee powers. Publications Reports and briefings are published on the group s website at Committee staff The APPG on Migration s Parliamentary Officer is Awale Olad and the APPG secretariat is provided by the Migrants Rights Network. This report was written by Awale Olad and Ruth Grove-White, on behalf of and in partnership with the APPG inquiry Committee. Contacts All correspondence should be addressed to the Parliamentary Officer, Awale Olad. The telephone number for general enquiries is ; the group s address is info@appgmigration.org.uk Disclaimer The facts presented and views expressed in this publication are those of the APPG inquiry Committee and the content has been agreed by Committee members. The content is not necessarily endorsed by other members of the APPG on Migration, the political parties of the members of the Committee or the Migrants Rights Network. APPG on Migration - UK post study work opportunities for international students 3

4 Foreword International students contribute enormously to the vitality of our universities and their surrounding communities. They enrich the teaching environment, strengthen research capacity, are valued by employers, enhance the cultural diversity of our towns and cities, and contribute more than 10 billion a year to our economy. In 2014, the UK remained the second most popular student destination in the world, after the United States, but our market share is slipping. Around the world, increasing numbers of young people are travelling abroad to study. The Department of Business, Innovation, and Skills estimates that the market will have doubled between 2010 and However, five Parliamentary Select Committees have expressed concern that the UK will miss the opportunity to benefit from this growth because of the impact of migration policies. Much of this debate has focused on the inclusion of students in net migration targets, but this report considers one specific aspect of policy the changes to post-study work opportunities. In March 2011, the Home Secretary, Theresa May, said that The UK has a worldwide reputation for providing quality education to overseas students, and Britain is rightly the destination of choice for many people wishing to study abroad. That reputation has made UK education a major export. Our inquiry considered what impacts the closure of the Tier 1 PSW route has had on the attractiveness of the UK as a destination to study. We found that in the five years prior to the new rules taking effect in 2012, student numbers continued to grow, but in the following year we saw the first fall. In particular, important student markets to the UK such as India, Nigeria, Pakistan, and Japan have seen sharp declines. The overall impact has been offset by the continuing boom in Chinese students enrolling into UK higher education, who now exceed any other nationality: 87,895 Chinese students enrolled in 2013 and Indian students were second highest at 19,750. But we heard concerns about the over-dependence on one country. We found that the Government s own estimate that its policies would reduce those securing visas by 49% significantly underestimated the impact with the real reduction being closer to 88%. We heard evidence of students instead applying to countries with a better post study work offer. Countries such as Australia had enhanced their PSW offer after seeing their own numbers falling following restrictions to their offer. Small businesses told us of the increasing difficulty in recruiting from the pool of international students. These difficulties were in acquiring a sponsor license, coupled with the basic salary requirement of 20,500, and that a number of SMEs either lack the expertise of getting a sponsor license or do not pay the basic entrant salary required by the Home Office. We also found that the majority of sponsor licenses are in the South East of England, with other regions as well as Scotland, Northern Ireland, and Wales being badly affected by a lack of take-up from SMEs. Universities are also seeing sharp declines in students from key markets that contribute a significant proportion of STEM enrolments. Some universities are threatened with closing departments and others are beginning to grapple with the lack of diversity on campuses. Some students told us that if they had known the difficulties in finding employment in the UK after the completion of their studies, they would have gone elsewhere. Others found it increasingly difficult to find employers willing to take them on at the basic entrant salary requirement in Tier 2. Our competitor countries offer far more generous post-study work opportunities than we currently do. The previous Tier 1 PSW route in the UK allowed students significant flexibility APPG on Migration - UK post study work opportunities for international students 4

5 to acquire work experience and employment. The reformed routes, by contrast, have generated concern among universities, employers, and students as too restrictive. We concluded that this has made the UK a less attractive destination for many prospective students and that we need to look again at the issue if we are to maintain our position in the international student market. There is strong cross-party agreement on the need to take action to restore our reputation as the destination of choice for international students from all countries. We believe that this report offers a sensible and workable set of recommendations on how changes in one area of policy could make a difference. We hope the government will carefully consider our proposals. Paul Blomfield MP Chair, All-Party Parliamentary Group on Migration APPG on Migration - UK post study work opportunities for international students 5

6 Contents Executive Summary 7 1. Introduction 1.1 Inquiry terms of reference Evidence Report scope and drafting Definitions used in this report Background to UK post study work rules 2.1 Pre-2008 post study work routes Tier 1 (Post Study Work) route Reform of post study work rules Current rules on post study work in the UK Post study work rules in popular destinations Closure of the Tier 1 PSW route 3.1 Overview International students in the UK Post study work in the UK International student intake International students by country of domicile Post study workers Current post study work routes in the UK 4.1 Overview Current post study work routes Tier 2 (General) Additional post study work routes Conclusions and recommendations 5.1 Conclusions Recommendations 39 Appendix A 40 Appendix B 41 Appendix C 42 APPG on Migration - UK post study work opportunities for international students 6

7 Executive Summary Introduction In June 2014, the APPG on Migration established a cross-party inquiry into the closure of the Tier 1 (Post Study Work) route in April The inquiry looked at the potential impacts of the closure of Tier 1 PSW, and reviewed the alternative post study work opportunities that have been in operation since The Committee received 101 written submissions from universities, businesses, individual students, parliamentarians, Scottish Government and local authorities. The Committee additionally held 2 oral evidence sessions with the following expert witnesses from business, higher education, and parliament: Lancaster University, London School of Economics & Political Science, National Union of Students, Universities UK, Lord Krebs (former Chair of STEM Select Committee), National Indian Students Union UK, Tech UK, Recruitment & Employment Confederation, and EEF (Manufacturers Organisation for UK Manufacturing). Key findings 1. Reform of the UK s post study work opportunities in 2012 appears to have contributed towards significant shifts in international student flows to the UK over the past five years. This could have implications for the UK s future standing within an internationally competitive marketplace. The Committee found that the numbers of non-eea students coming to the UK in particular postgraduates - have undergone fluctuations over the past five years, which are a matter for concern. The closure of Tier 1 Post Study Work route in April 2012 probably contributed towards the substantial decline in international student numbers in 2012/13. Provisional data from the Higher Education Statistics Authority for 2013/14 indicates that overall growth has resumed within the international student market, but it is uncertain whether this growth will be sustained into the future. Even if the UK can sustain this growth, it could masks country variations as we continue to be less successful in the growing market with key competitors. The Committee also found it likely that reform of the UK s post study work offer has contributed towards substantial changes to the demographic make-up of international students coming to the UK. The UK has seen a significant decline in intake from India and Pakistan since 2010/11 and, as yet, there has been no sign of recovery within these markets. Rising intake from China is increasing and is contributing towards meeting growth targets within the international student market. However, there is a danger that an overdependency on this market into the future could carry risks for both the student experience within the UK, and the sustainability of UK higher education exports. Finally, the Committee noted the highly competitive nature of the international marketplace, with key Anglophone countries including the USA, Australia and Canada all developing aggressive strategies for growth in market share, including offering attractive post study work opportunities to international graduates. 2. The closure of the Tier 1 PSW route has resulted in a significantly larger decline in the numbers of skilled international graduates able to remain in the UK for employment following their studies than that anticipated by the Government. Since the closure of Tier 1 PSW in April 2012, data indicates that relatively low numbers of visas have been issued to skilled graduates in the UK under Tier 2 (General) intended by the Government to provide the primary route for post study work into the future. This has APPG on Migration - UK post study work opportunities for international students 7

8 been accompanied by very low recruitment rates among the additional post study work routes provided under Tiers 1, 4 and 5 of the Points Based System. Whilst 34,895 Tier 1 PSW visas were issued in-country to former students in 2012, just 4,175 Tier 2 (General) visas were issued to this group in This suggests that there was a drop of 88% in the number of skilled and highly-skilled non-eea graduates from remaining in the UK for employment significantly higher than the 49% decline anticipated by the Government. 3. Tier 2 (General) has prevented some UK employers from being able to recruit skilled international graduates, as a result of its restrictive costs and requirements. The Committee heard that the restrictive nature of Tier 2 (General) has prohibited some employers from being able to recruit skilled non-eea graduates under this route. In particular, sponsor licensing requirements generating costs and bureaucracy for employers; the short time periods afforded to non-eea graduates prior to expiry of leave; and the salary requirement for Tier 2 (General) have variously prevented some employers including Small and Medium-sized Enterprises (SMEs) and large companies undergoing graduate recruitment rounds - from recruitment of skilled non-eea graduates under Tier 2 (General). As a result, the Committee noted: Regional impacts - The lower numbers of Tier 2 (General) licensed sponsors outside London and the South East mean that it is now less likely that employers based outside the capital can recruit skilled non-eea graduates when needed. The Committee was concerned that this could, in some cases, have implications for regional economies. Sectoral impacts - Evidence suggests that employers within certain employment sectors including Science, Technology, Engineering and Mathematics (STEM); Creative Arts, and Motorsports are now less likely to be able to recruit skilled non- EEA graduates when needed. Again, the Committee was concerned that this could impact on growth within important sectors of the UK economy. 4. Additional post study work routes, including under Tiers 1, 4 and 5, currently recruit very low numbers of non-eea graduates following their studies here. The Committee heard that the limited nature of the post study immigration routes under Tiers 1, 4 and 5 of the Points Based System have resulted in low numbers of non-eea graduates utilising these routes since April In particular, the Tier 1 (Graduate Entrepreneur) visa; Tier 4 (Doctorate Extension Scheme); Tier 5 (Government Authorised Exchange) have had limited take-up. The Committee concluded that, in their current form, these routes make only a minor contribution towards providing non-eea graduates and employers with adequate post study employment opportunities in the UK. Conclusions The Committee concluded that the current UK post study work opportunities should be reconsidered with a view to: Maximising the attractiveness of UK higher education in the face of an increasingly competitive international marketplace; Continuing to serve the interests of UK employers, particularly within growth areas of the economy such as STEM; Sending a positive message internationally that the UK is open for business. APPG on Migration - UK post study work opportunities for international students 8

9 Recommendations 1. A new immigration route should be established which allows non-eea students to remain in the UK for a period of at least 12 months following graduation from a recognised domestic academic institution, in order to secure skilled employment. This route would: Better enable UK businesses to identify and recruit skilled non-eea graduates; Provide graduates with adequate time to prepare and apply for jobs following graduation, including via graduate recruitment cycles; Require graduates, at the end of the 12 month period, to secure employment under Tier 2 (General); switch into another permitted immigration route; or leave the UK. 2. Improvements should be made to Tier 2, in order to ensure that skilled international graduates can be retained within key sectors of the UK economy. In particular, the Government should: Review current rules for Tier 2 (General) including the licensing and reporting requirements to improve the attractiveness of this route to UK employers including small and medium sized enterprises (SMEs); Allow greater flexibility regarding the Tier 2 (General) salary requirement to accommodate variations in average graduate starting salaries across the regions and constituent countries of the UK, and sectoral variations across the UK economy; Improve Home Office information targeting employers - and particularly SMEs - regarding Tier 2 rules in relation to non-eea graduates in the UK. 3. Consideration should be given to improving additional routes for post study work in the UK, in order to increase the access of UK employers to skilled non-eea graduates under these routes. In particular, the following routes should be reviewed: Tier 1 (Graduate Entrepreneur) visa; Tier 4 (Doctorate Extension Scheme); Tier 5 (Temporary Worker - Government Authorised Exchange). 4. The Government should commission an in depth independent review of the impacts of policy in this area and on the UK s share of the international student market. This should consider: Direct and indirect impacts on UK higher education and businesses; Factors leading to the reduction of international student intake from some key markets including India and Pakistan, and growth within other markets including China, and the likely trajectories of these markets into the future. International competitors particularly within the Anglophone market and their potential for future impact on the UK s market share. Whether the UK s ability to keep producing global leaders in various fields is now being eroded as a result of the current rules. APPG on Migration - UK post study work opportunities for international students 9

10 1. Introduction This is the final report of the All Party Parliamentary Group on Migration inquiry into the closure of the Tier 1 PSW visa in April The inquiry was established in June Inquiry terms of reference The APPG on Migration inquiry set out to examine how the closure of the Tier 1 visa category on Post-Study Work may have had an impact on foreign students, universities, and local economies. It sought responses to the following questions in particular: Have there been any impacts on international student numbers or demographic profile as a result of the closure of the PSW route? Have there been any impacts on businesses or universities of closing the PSW route? Have there been any economic or social impacts at local/regional level or nationally? How has the closure of the PSW route been viewed internationally? Has it had any implications for foreign trade and commerce or wider diplomatic relations? 1.2 Evidence The inquiry launched on 11 June 2014 with a call for written evidence which closed on 30 September The inquiry sought submissions from students, universities, local government, businesses, charities, analysts, lawyers, employers, trades unions and other sources of relevant evidence. Individuals, who had direct experience of the impact of the changes to the visa category, as well as support organisations and advisers, were particularly invited to share their views. The inquiry was circulated amongst the APPG on Migration stakeholder list (over 2130 parliamentarians, businesses, statutory agencies, charities, and individuals), universities and private colleges in the UK, student bodies, large and small businesses, local authorities, non-governmental organisations, Commonwealth High Commissions and some embassies. The Committee also advertised the inquiry on social media, in particular twitter, via the APPG s The Committee received a total of 101 pieces of written evidence. Submissions were received from 35 universities, 37 existing and former non-eea students, 21 nongovernmental organisations, five businesses, one high commission, one parliamentarian, and one submission from the Scottish Government. The Committee additionally held two oral evidence hearings, with ten witnesses appearing before the Committee in October and November 2014: Shreya Paudel (International Officer, National Union of Students); Simeon Underwood (Academic Registrar & Director of Academic Services, London School of Economics) with Ms Indo Vickerson (LSE Students Union International Officer); Nicola Owen (Chief Administrator, Lancaster University); Jo Attwooll (Programme Manager, Universities UK); Lord Krebs (Chair, STEM Select Committee), Rhea Ranjan (National Indian Students Union UK), Antony Walker (TECH UK), David Geary (Recruitment and Employment Confederation), and Verity O Keefe (EEF, Manufacturers Organisation for UK Manufacturing) with James Bendall (SEM Ltd) and Toby Peyton-Jones (Siemens PLC). A full list of written and oral evidence to the inquiry can be found at the back of this report. Written evidence submitted by organisations, in addition to oral transcripts, can be downloaded from the APPG on Migration website: Individual written submissions have not been made publicly available for reasons of confidentiality. Where individual case studies have been quoted or referred to in this report, identifiable details have been changed. APPG on Migration - UK post study work opportunities for international students 10

11 1.3 Report scope and drafting This report is based on qualitative research and provides some insight into the impacts of the changes. It also draws upon data received from answers in a series of parliamentary questions submitted by Paul Blomfield MP. The Committee notes that the scope for this report was limited to the changes in the rules relating to post study work opportunities for non-eea students in the UK. However, it recognises that these changes have been accompanied by far-reaching reform of the wider rules affecting international students, alongside a dynamic debate about the level and type of immigration flows to the UK. These issues and considerations could not be reflected within the content of the report, but are recognised as constituting its context. The Committee hopes that the findings and recommendations of this report provide a useful contribution towards debate about the rules in this area of public policy. 1.4 Definitions used in this report The below terms are used throughout this report: EEA national a national of a country in the European Economic Area (the European Union member states in addition to Iceland, Lichtenstein, and Norway) and Switzerland. International student a non-european Economic Area (the European Union member states in addition to Iceland, Liechtenstein, and Norway), and Switzerland national in tertiary education at a UK institution. 1 Leave to enter/leave to remain permission granted to a person subject to immigration control, which allows them to enter the UK, or remain in the UK, subject to restrictions determined by the Immigration Rules. Points Based System (PBS) The UK s framework for economic migration. The PBS has five tiers, under which visas are issued for work and/or study in the UK. Applicants are required to score a set number of points on the basis of key attributes, in order to secure leave to enter or remain in the UK. Tier 1 PSW Former Tier 1 Post-Study Work route, which allowed students to remain in the UK for up to 2 years in order to seek employment after completing their studies. Sponsor license a license that allows an employer to sponsor workers from outside the EEA who will be employed or engaged under Tier 2 or 5 of the points-based system. Highly trusted Higher Education providers also hold sponsor licenses under Tier 4 of the Points Based System, for non-eea students wishing to study in the UK. 1 EU and EEA students enjoy the same rights and benefits. APPG on Migration - UK post study work opportunities for international students 11

12 2. Background to UK post study work rules This section gives an overview of the recent rules relating to post study work in the UK. It outlines the UK rules on post study work opportunities immediately prior to reforms in this area, detailing the context for the introduction of the Tier 1 PSW route in 2008 and outlining its scope. It introduces the primary routes for post study work in the UK following the closure of Tier 1 PSW in April Pre-2008 post study work routes During the period immediately prior to 2008, graduates from outside the European Economic Area (EEA) were able to apply for employment in the UK under two main routes following completion of their studies: Fresh Talent: Working in Scotland Scheme (FTWiSS) Introduced in 2005 by the UK Government, the Fresh Talent: Working in Scotland Scheme (FTWISS) was jointly operated by the Scottish Government 2 and the Home Office, with the latter retaining final decision-making power over applications 3. FTWiSS allowed non-eea students with a Higher National Diploma, undergraduate, postgraduate, or PHD, from a Scottish Higher Education, to remain in Scotland for up to two years after completing their studies in order to seek employment. Data on grants of leave to remain under the Fresh Talent scheme during its period of operation is shown in Table 2A: Table 2A: Grants of leave to remain under the Fresh Talent: Working in Scotland scheme Year Grants of leave to remain , , ,665 Source: Home Office data, obtained December 2014 The International Graduates Scheme (IGS) The International Graduates Scheme (IGS) was introduced in It replaced the previous 2004 Science and Engineering Graduates Scheme (SEGGS), which had enabled non-eea graduates in the UK to seek employment within STEM (Science, Technology, Engineering, and Mathematics) occupations. The introduction of the IGS extended the employment opportunities to international graduates in the UK beyond STEM subjects, allowing non-eea nationals who had successfully completed a relevant UK degree or postgraduate qualification to work or set up a business in the UK for 12 months, without requiring a work permit. The total number of international students granted extensions of stay in the UK under the IGS is shown in Table 2B: 2 McNulty, Tony. (2006) Fresh Talent Scheme. [Online] House of Commons, 27 February 2006, Column 87w. new2 3 Scottish Government (2005) Fresh Talent: Working in Scotland [Online] 16 June APPG on Migration - UK post study work opportunities for international students 12

13 Table 2B: Extensions of stay granted - International Graduates Scheme, 2008 to Year Main applicants Dependants Total ,147 2,666 18, Source: Home Office data, obtained December 2014 In 2008, a total of 30,478 visas were issued under the Fresh Talent: Working in Scotland Scheme and the International Graduates Scheme. They were replaced by the Tier 1 Post PSW visa in In 2009, 34,181 visas were granted under the new Tier 1 Post Study Work route. 5 The Tier 1 Post Study Work route additionally replaced temporary provisions introduced for all postgraduates, plus undergraduates in shortage sectors, to work in the UK for 12 months upon completion of their studies, as well as provisions aimed at MBA graduates Tier 1 PSW route Between 2008 and 2010, the UK Government phased in a substantial overhaul of the immigration system, introducing a new Points Based System (PBS) for economic migration from outside the European Economic Area (EEA). The PBS was intended to replace more than 80 pre-existing visa categories with a more transparent and flexible system for managing immigration for work and study to the UK 7. The PBS comprised five tiers of visas: Tier 1 (for highly skilled migration); Tier 2 (skilled migrants with a job offer); Tier 3 (unskilled migration); Tier 4 (international students); and Tier 5 (youth mobility and temporary workers). Tiers 1, 2, 4 and 5 of the PBS were phased in from 2008, but Tier 3 was not subsequently made operational. The PBS introduced a new points-based system for assessing migrant applications based on their ability to meet key criteria, and extended the role of UK-based sponsors in order to more closely regulate migrant s whilst here. In 2008, a new post study visa route was introduced under Tier 1 of the Points Based System the tier intended to attract migrants with the very highest skills to the UK 8. The intentions of the Government in introducing the PSW route were outlined by the then Immigration Minister Liam Byrne: Tier 1 (Post Study Work) provides a bridge for international graduates from their studies to work in the UK... We believe this to be one of the most attractive staying on schemes in the world; it will boost our economy both by enabling these graduates to remain in the UK and by making studying in the UK a more attractive prospect. 9 4 Source: Table ex_01 Immigration Statistics April-June 2014: 5 Page 28 of this report reviews the new PSW routes since A Points Based System: Making Migration Work for Britain. March 2006, 7 Ibid. 8 Ibid. 9 Byrne, Liam. (2008) Statement: Immigration Reform. [Online] House of Commons, 9 June 2008, Column 4ws. Available online at: APPG on Migration - UK post study work opportunities for international students 13

14 Tier 1 PSW route was open to all students who had studied in the UK and been awarded a UK recognised bachelor s or postgraduate degree, a UK Post Graduate Certificate in Education (PGCE) or Professional Graduate Diploma of Education (PGDE) or a Higher National Diploma from a Scottish institution. It allowed former students to apply to remain in the UK for a two-year period following completion of a degree or postgraduate degree here, in order to seek employment. During the period of the PSW visa, non-eea graduates had unlimited access to the UK labour market. Tier 1 PSW visa holders could apply to switch into one of the main work routes under Tier 1 or Tier 2 during their period of leave to remain. This in turn could lead to settlement in the UK. PSW visa holders who had not secured further permission to remain following the completion of their two-year period of leave were required to leave the UK. In order to qualify, PSW applicants were required to apply for a visa within 12 months of completing their studies in the UK at a recognised or listed institution. Tier 1 PSW applicants were required to obtain at least 95 points by meeting the following key requirements 10 : Attributes including specified academic award, study undertaken at recognised or listed UK academic body within the Immigration Rules, and an in-time application made (75 points); English language ability (10 points); Ability to support themselves in the UK financially, through evidence of adequate available funds for 90 consecutive days before the date of the application. (10 points) Non-EEA graduates could also apply for a PSW visa from outside the UK. Out-of-country applicants were required to apply for entry clearance to the Home Office. In order to meet the rules they were required to obtain 95 points under the Tier 1 PSW criteria detailed above, and to meet a higher savings threshold. Spouses/partners and children under 18 could join PSW visa holders if requirements were met for entry clearance, accommodation and maintenance. PSW route visa holders and their dependents were subject to no recourse to public funds restriction, meaning that they could not access most benefits, tax credits or housing assistance in the UK. PSW visas could not be extended or subsequent grants of leave under this route applied for. Applicants previously granted entry clearance under the IGS, SEGGS or FTWiSS schemes were automatically ineligible for a Tier 1 PSW visa. There was no numerical limit to the number of Post Study Work visas that could be issued. 2.3 Reform of post study work rules In May 2010 the Coalition Government came to power, with a programme for government informed by the Conservative party s manifesto pledge to take net migration back to the levels of the 1990s tens of thousands a year, not hundreds of thousands 11. The Coalition Agreement outlined a range of reforms to the immigration system, including measures affecting international students coming to the UK in order to minimise abuse of the immigration system Tier 1 (Post-Study Work) Policy Guidance version 04/12 Addendum. 1 July Available online at: e1.pdf 11 Conservative Party Manifesto Available online at: 0 APPG on Migration - UK post study work opportunities for international students 14

15 In December 2010, the Government released a set of proposals aimed at reforming the rules for international students, in a public consultation document entitled The Student Immigration System: A Consultation. The policy aim informing the proposals was to ensure that only genuine students who are committed to their academic study come to the UK, with a presumption that upon completion, they will leave promptly 12. A range of reforms were considered, including raising the level of courses at which students could apply to study in the UK; introducing tougher entry criteria for students; and ensuring that students return home following their course. The consultation document proposed closure of the PSW route, stating that: The student route is a temporary migration route, with students expected to leave on completion of their studies. We are concerned that the Post Study Work route confuses this concept. 13 The consultation received over 30,800 responses, from a range of private and public institutions as well as from individuals. The Government s summary of inquiry responses, released on 1 st March 2011, reported that considerably less than half - 33% - of respondents agreed with the proposal that the Post Study work route be closed. 83% of respondents disagreed with restriction of Tier 1 PSW to those who obtain a PhD by a UK university 14. On 17 th March, a Home Affairs Select Committee (HASC) inquiry report into the proposed reforms to the international student route was also released. The HASC report noted that, in 2009, the Migration Advisory Committee had proposed retaining Tier 1 PSW, whilst keeping it under review as one of the most generous systems of its kind in the world 15. Drawing upon evidence from a range of sources, the HASC report recommended that the Government retain Tier 1 PSW, with reforms if necessary: We understand the reasoning behind the proposal to close the Post Study Work route but its importance in terms of attracting international students and its use as a method of gaining work experience for certain degrees should not be underestimated. We would ideally suggest that the system be maintained, in the light of the use of post study work options to attract the best students by our main competitors in the higher education sector. However, if it is to be reformed, we recommend that the Government give careful consideration to either a) introducing a six month visa to look for work with the possibility of an extension of 18 months if the applicant has received the offer of skilled work or is a director of a company which has two full-time equivalent employees; b) limiting the number of institutions whose qualifications entitle the holder to post study work; and c) given concerns about maintaining UK competitiveness in STEM research, exempt STEM graduates from new restrictions until the domestic market is sufficiently robust... On 21st March 2011, Home Secretary Theresa May delivered a statement to parliament confirming the Government s planned changes to the student immigration rules 16. She stated 12 The Student Immigration System: A Consultation. Home Office UK Border Agency. December Ibid. 14 Reform of the Points Based Student (PBS) Immigration System: Impact Assessment, the Home Office, 1 June Available online: 15 Migration Advisory Committee, Analysis of the Points Based System Tier 1, December Foreign Student Visas: Home Secretary s Statement, 21 March Available online at: APPG on Migration - UK post study work opportunities for international students 15

16 the Government s aim to reduce net migration from the hundreds of thousands, back down to the tens of thousands, and argued that we need to stop the abuse and return some common sense to our student visa system. The Home Secretary confirmed that changes would be made to the rules, including a more rigorous system of accreditation for academic institutions seeking to sponsor international students, tighter entry requirements for students, and limitations on students ability to work during their studies in the UK. In her statement, the Home Secretary also confirmed the Government s decision to close the Post Study Work route from April She indicated that Tier 2 of the Points Based System which permits non-eea nationals to enter or remain in the UK for skilled employment would be the primary route for foreign graduates to seek employment here. In future, only those graduates who have an offer of a skilled graduate level job from an employer who is licensed by the UK Border Agency will be allowed to stay. Post Study migrants must be paid at least 20,000 or the appropriate rate for the occupation, as set out in the relevant code of practice, whichever is higher. This will prevent employers from recruiting migrants into skilled occupations, but paying them less than the going rate. We estimate that had this been applied last year it would have halved the numbers staying in the UK through this route. A Home Office impact assessment, Reform of the Points Based Student Immigration System 17, issued in June 2011, detailed the Government s evaluation of the closure of the PSW route. It stated that We do not believe that it is reasonable to continue to offer unrestricted access to the labour market when graduate unemployment has risen to its highest level for 17 years. For the same reason, we have recently announced the closure of Tier 1 (General). We also want to make an absolute distinction between those who come to study and those who come to work, and make it clear that the study route is not a back-door into working in the UK. The impact assessment offered three main reasons for closing the PSW route: 1. Maintaining the PSW would be inappropriate as it would allow free access to the UK s labour market at a time of high graduate unemployment; 2. Maintaining the PSW would not reinforce the idea that students are temporary migrants; and 3. Reforming the route would increase the quality of students entering and studying in the UK and gaining employment in high-skilled sectors through Tier 2. The impact assessment estimated that closure of the PSW route and its replacement with a Tier 2 route would reduce the volume of related visas and in country grants by approximately 49 percent. This finding was based on the Government s assumption, based on survey data, that 51 percent of PSW visa holders were employed in skilled employment (defined as jobs above the top three levels of Standard Occupation Classification Codes or SOCC) 18 ; the impact assessment calculated that this proportion of foreign students would therefore qualify to remain in the UK for employment under Tier 2. In numerical terms, the Government anticipated that closure of the PSW route would result in a total reduction in PSW visas of 15,000 in 2012, 21,000 in 2013, 21,000 in 2014, and 22,000 in The potential impact of these changes was also considered in combination with the wider changes to Tier 4 also proposed by the Government at this time. It was proposed that, in the central case and subject to error margins, the policy options outlined in 17 Reform of the Points Based Student (PBS) Immigration System: Impact Assessment, the Home Office, 1 June Available online: 18 Entry Clearances: Overseas Students: Written question , 8 September Available online: APPG on Migration - UK post study work opportunities for international students 16

17 the impact assessment could reduce net non-eu student migration by 38,000 in 2012, 61,000 in 2013, 61,000 in 2014, and 56,000 in The impact assessment additionally anticipated that closure of the PSW route would have economic impacts, and calculated a potential loss of 1.2 billion in economic output over a four-year period as a result of the reduction in workers formerly recruited under this route. 2.4 Current rules on post study work in the UK New rules relating to the Tier 1 PSW visa were laid before Parliament on 15 March 2012, in Statement of Changes HC The new rules closed the Tier 1 PSW visa to new applicants from 6 April Dependants remained able to apply to join applicants who had obtained prior entry clearance on a PSW visa 19. Subsequent changes to the post study work rules aimed at foreign graduates in the UK have been made through secondary legislation including Statement of Changes HC 628 (September 2013) 20 and Statement of Changes HC 532 (July 2014) 21. Since 6 April 2012, the primary route by which non-eea graduates may apply to stay in the work for employment has been Tier 2 (General). Further additional visa categories have been created or amended in order to allow limited numbers of non-eea graduates to remain in the UK for work, including under Tiers 1, 4 and 5 of the Points Based System. In January 2015, the main opportunities for non-eea graduates to remain in the UK for employment were 22 : Tier 2 (General) The Tier 2 (General) route was envisaged by the Government to be the primary route for skilled graduates to remain in the UK for employment following their studies here. Under Tier 2 (General), non-eea migrants with an offer of skilled employment from a licensed employer may apply to enter and/or remain in the UK. International students who have graduated from a recognised or listed UK institution with a recognised degree at Bachelor s, Master s level, UK Postgraduate Certificate in Education (PGCE) or Professional Graduate Diploma of Education (PGDE), or students who have completed a minimum of 12 months study in the UK towards a UK PhD during their last grant of leave or period of continuous leave, may apply to switch into this route from Tier 4 following their studies. Non-EEA graduates applying from within the UK for a Tier 2 (General) visa must do so prior to the expiry of their student visa. For courses lasting 12 months or more, the leave granted under a student visa lasts for the full length of the course plus four months after the course end date. Postgraduate doctors and dentists on a recognised Foundation programme are granted leave to remain for the full length of the course (up to a maximum of three years) plus one further month of leave after the course end date. Tier 4 visa holders seeking to switch into Tier 2 (General) must have a valid offer of employment from a registered Tier 2 (General) employer, prior to expiry of their leave. The offer of employment must be for a graduate level role (NQF level 6 or above), with a minimum salary of 20,500 per annum or the appropriate level for that occupation, 19 Immigration: Tier 1 (Post-study work) visas, March 2012, House of Commons library file:///users/macuser/downloads/sn05881.pdf 20 Statement of Changes in the Immigration Rules, House of Commons, 6 September 2013, Available online at: 21 Statement of Changes in the Immigration Rules, House of Commons, 10 July Available online at: 22 The information below is accurate up to 15 th January APPG on Migration - UK post study work opportunities for international students 17

18 whichever is higher 23. Applicants must provide proof of their UK course award according to Home Office evidential requirements, as well as meeting English language and maintenance requirements. In order to employ a non-eea graduate in the UK, a UK employer must be registered as a Tier 2 (General) sponsor. This allows the employer to issue Certificates of Sponsorship (CoS) to non-eea nationals for applicable roles under Tier 2 (General). In order to register as a Tier 2 (General) sponsor, the employer must apply to the Home Office, supplying the required supporting documentation. The fee to obtain a Tier 2 sponsor license is 536 for small 24 or charitable sponsors, and 1,476 for medium or large sponsors 25. Employers must pay a further 184 per CoS 26 issued. CoS must be issued by employers within three months of being approved. An employer sponsor license remains valid for four years, but may be suspended or withdrawn by the Home Office if the employer does not meet its responsibilities as a sponsor. These responsibilities include use of the online Home Office Sponsor Management System by appointed staff members, ongoing monitoring of employees immigration status and attendance, and the undertaking to report any problems relating to the employee to the Home Office. Under the Resident Labour Market Test (RLMT) requirement for Tier 2 (General), employers are usually required to advertise in the UK prior to making a job offer to a non-eea national. However, employers are not required to carry out the RLMT prior to sponsoring Tier 4 graduates applying to switch into Tier 2 (General) from within the UK. In addition, Tier 2 (General) visas issued to foreign graduates in the UK are not included in the numerical limit on visas under this route, although this remains under review by the Government 27. Tier 4 graduates may also apply for Tier 2 leave to remain from outside the UK. For these applicants, the standard rules for Tier 2 entry clearance applications apply, including application of the RLMT and the numerical limit on visa grants under this route. Tier 2 (General) visas are granted for a maximum of five years and 14 days, or the time given on a certificate of sponsorship plus 1 month, whichever is shorter. Visa holders can apply to extend their visa for up to a further five-year period, provided their total stay is not more than six years. During their period of leave to remain in the UK, Tier 2 (General) visa holders may sponsor immediate dependents to join them in the UK, provided they can demonstrate their ability to financially support them whilst here. They have no recourse to public funds whilst here. When in the country, a Tier 2 (General) visa holder may change employers by reapplying for leave to remain. They may only move to another employer licensed to sponsor them under the PBS. Following a five-year period in the UK under Tier 2 (General), visa holders whose earnings may apply for settlement (or indefinite leave to remain ) in the UK. From 6 April 23 This salary level was initially set at 20,000 per annum but has subsequently been subject to review and undergone increases. It is currently set at 20,500 per annum. 24 Businesses are classed by the Home Office as small if they have an annual turnover of 6.5 million or less and 50 employees or fewer. 25 Tier 2 (General) license fees accurate as of 5 February Available online at: 26 Tier 2 (General) Certificate of Sponsorship fees accurate as of 5 February Available online at: 27 Immigration: Tier 1 (Post-study work) visas, House of Commons Library, March Available online at: APPG on Migration - UK post study work opportunities for international students 18

19 2016, Tier 2 settlement applicants will be required to demonstrate a gross annual salary of at least 35, The Government anticipated that Tier 2 (General) would provide the main route for non-eea graduates to seek to work in the UK following their studies. Additional post study work visa categories In addition to Tier 2 (General), a small number of other post study work visa categories are targeted at non-eea graduates in the UK. The main categories are detailed below: Tier 1 (Graduate Entrepreneur) visa The Tier 1 (Graduate Entrepreneur) visa route opened in April It is open to non-eea graduates and postdoctoral researchers with leave to remain under Tier 2, who have genuine and credible business ideas and entrepreneurial skills. Successful applicants may remain in the UK for up to 12 months in order to develop a business under the supervision of an authorised UK Higher Education Institution (HEI) which has endorsed the applicant. The HEI may be an institution other than the one at which the applicant attained their degree. Applicants endorsed by a UK HEI must have a UK-recognised bachelor s degree, master s degree or PhD awarded before the date of endorsement, as well as meeting an English language requirement, and demonstrating that they hold 945 in savings if applying from inside the UK, or 1,890 if applying from outside the UK, and have done so for at least 90 days prior to the application 29. Tier 1 (Graduate Entrepreneur) visa holders may sponsor dependents to join them in the UK and, at the end of the initial period of leave to remain, may apply for a further 12-month period of leave. They do not have recourse to public funds during this period, and the route does not lead to settlement in the UK. Tier 4 Doctorate Extension Scheme (DES) The Tier 4 Doctorate Extension Scheme (DES) was introduced in April It allows current students approaching the award of a UK PhD or other doctorate qualification to apply for a further 12-month period of leave under Tier 4 (General), in order to gain work experience in the UK. During this period of extended leave, Tier 4 DES visa holders have full access to the UK labour market, excepting employment as a professional sportsperson or coach, or as a doctor or dentist in training. Tier 4 DES visa holders continue to be sponsored by their Tier 4 sponsor, and must meet contact requirements accordingly. Tier 4 DES applicants must apply from within the UK, and must have a current Tier 4 visa, as well as a valid Certificate of Acceptance of Studies from a recognised or listed institution. Applicants must also meet a maintenance requirement. Applications must be made within the 60 days prior to completion of the PhD or doctorate course, and cannot be made following course completion. Tier 4 DES visa holders are permitted to sponsor dependents. A student may apply to switch in the UK from a DES visa to Tier 2 (General) or Tier 1 (Graduate Entrepreneur) or any other Tier 1 category. 28 Immigration Rules, Appendix I. Pay requirements which the Secretary of State intends to apply to applications for indefinite leave to remain from Tier 2 (General) and Tier 2 (Sportspersons) migrants made on or after 6 April Home Office These figures correct as of 1 February APPG on Migration - UK post study work opportunities for international students 19

20 Tier 5 (Temporary Worker - Government Authorised Exchange) Tier 5 Government Authorised Exchange route opened in November It enables non- EEA nationals to come to the UK for limited periods for the purpose of carrying out work experience, training, or research. It is open to Tier 4 visa holders, as well as to out-of country applicants who wish to undertake a short period of work experience or training in the UK. In order to apply for work experience in the UK, Tier 4 visa holders must be sponsored for a period of relevant professional postgraduate training or related work experience, by an organisation running an approved exchange scheme. Applicants must meet a maintenance requirement and demonstrate that they hold a UK recognised degree. Visa holders under this programme are granted leave to remain in the UK for up to 12 or 24 months (depending on the scheme applied for). Following completion of this period, they are not permitted to switch into Tier 2 (General) and leave to remain under this route does not lead to settlement in the UK. 2.5 Post study work rules in popular destinations The United Nations Education, Scientific and Cultural Organisation (UNESCO) have provided statistics on the global share of mobile students as of The list below, from the Russell Group s submission to this inquiry, outlines the top 5 of the most popular destinations and the post-study work opportunities on offer. 30 Global Flow of Tertiary-Level Students, UNESCO, Checked online in January APPG on Migration - UK post study work opportunities for international students 20