Foreign students are increasingly using UK university courses as a “backdoor” to long-term settlement, according to a new report by centre-right think tank Policy Exchange.
The report calls for the government to abolish the graduate visa route for all but postgraduate research students, arguing that the current system is failing in its intended purpose.
“Most fundamentally, the purpose of student migration should be to study, not to provide a backdoor route to longer-term migration or settlement. Yet increasingly studying in the UK has become a pathway for widespread and sustained immigration,” the report states.
The graduate visa, which currently allows international graduates to remain and work in the UK for up to two years, is already facing reform. In May, the Labour government proposed cutting the duration to 18 months. This followed earlier restrictions introduced by the Conservative government in January 2024, which barred most international students from bringing dependants — with exceptions made for postgraduate research programmes and government-funded scholars.
Despite these steps, Policy Exchange argues that further action is required.
The report highlights a 66% rise in international student numbers between the 2014/15 and 2023/24 academic years and points to a significant increase in visa switching. In 2023, 40% of international students switched to a different visa within a year, compared to just 3% in 2019.
Zachary Marsh, research fellow in education at Policy Exchange and author of the report, said, “UK universities must return to the business of selling education, not immigration.
Whilst international students can provide valuable economic benefits, the current system drives migration by those who have no interest in study but instead see the student and graduate visa as an open door to working in the UK.
The government and universities must go further to clamp down on those gaming the system.
A more muscular approach is needed to restore public confidence that international students are good for our universities and wider economy and society.”
The report also expresses concern that international students may be displacing domestic applicants at certain institutions.
Its release coincides with a Policy Exchange event in London focused on higher education and immigration, where Shadow Education Minister Neil O’Brien is expected to issue a strong critique of the current system.
“It’s not just taxpayers who are losing out,” O’Brien is expected to say. “The current system isn’t working for too many students, who are promised great things but find themselves having to pay back huge sums on very low wages.
Too many students are being ripped off, and we have to ask whether there are better uses of taxpayers’ money that will leave young people better off.”
However, the proposals have drawn pushback from within the higher education sector. Tim Bradshaw, chief executive of the Russell Group — which represents 24 research-intensive UK universities — defended the graduate route: “In an increasingly competitive global market, the UK needs to maintain an attractive offer for international students.
This includes the graduate visa route, which allows international graduates to remain in the UK to work and contribute to the economy for a period after their studies.
We know that international student recruitment, like any immigration policy, needs to be robust and fair to maintain people’s trust in the system. Our universities are committed to working with government to eliminate any abuse of the system and ensure places go to those who are here to study and meet the standards needed to succeed on their course.”
A government spokesperson reiterated ongoing efforts to reform the system, saying, “A series of measures have already been laid out in the Immigration White Paper to restore control over the system, including reducing the graduate visa from two years to 18 months.
We will also ensure international graduates move into graduate-level roles. This is what the Graduate route was created to facilitate access to and will also help meet the UK’s workforce needs as part of our Plan for Change.
We will also crack down further on abuse of our immigration system by strengthening requirements for universities, requiring tighter enforcement on visa approvals, course enrolments and student completions whilst continuing to welcome international students that support our world-leading universities.”
