Graduate visas will be reduced to just 18 months and a new levy will be imposed on income from international student fees, under plans outlined by the UK government.

A long-awaited on immigration has been published which outlines several changes Labour plans to make to the student visa system.

In a move that many fear will harm the country’s ability to recruit international students, the time they are allowed to stay post-graduation will be reduced to 18 months.��

Currently students can stay and work for two years, or longer after doctoral courses, and there were calls to lengthen this period to ensure the UK retains its leading role in providing education to the rest of the world.

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The government had considered restricting the visa to only those going into highly skilled work, but there was no mention of this in the paper.��

It did however include a proposal to take some of the earnings off providers to pay for the higher education system.��

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“The government will explore introducing a levy on higher education provider income from international students, to be reinvested into the higher education and skills system. Further details will be set out in the autumn budget,” it says.��

Ministers have been warned that further restrictions on international students will damage the financial viability of universities.��

A financial sustainability report, published last week by the Office for Students, found that almost half of institutions are facing a deficit this year, with a downturn in international student numbers a major factor, following visa restrictions brought in by the previous government.��

The White Paper recognises the importance of international students to universities and the wider economy, but says there had been a “series of problems involving misuse and exploitation of student visas, where visas are used as an entry point for living and working in the UK without any intention to complete the course”.

It adds that “too many graduates allowed to stay in the UK following the successful completion of their studies are not moving into the graduate level roles for which the Graduate visa route was created”.

Therefore the White Paper says there is a need to “raise standards and compliance to prevent visa misuse and strengthen the requirements to work and contribute”.

Further changes target “responsible recruitment” of international students and seek to protect the integrity of the student visa system, which the paper says has been undermined both by “individuals from overseas seeking to exploit it, and by education providers in this country failing to protect it”.

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It points to increases in the number of students claiming asylum as their visas approach expiry “including where circumstances in their home country have not changed” as evidence for the need to “take action against those who seek to abuse and misuse the system”.

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To prevent such misuses the White Paper proposes a strengthening of the requirements that sponsoring institutions must meet to recruit international students.

These include raising the thresholds institutions have to hit on course enrolment, from 90 per cent to 95 per cent, and course completion, from 85 per cent to 90 per cent.

A new “red-amber-green” banding system will be introduced to outline which sponsors have a high level of compliance, and which are at more risk of failing.

Institutions may also face new interventions if they fail to comply, including being subjected to action plans that place limits on the number of students they can recruit.

Jo Grady, general secretary of the University and College Union, said the proposals were “anti-growth” and “straight out of the Reform playbook”, referring to Nigel Farage’s populist right-wing party that has been gaining support in the polls.

“With higher education already under severe financial pressure, any further restrictions which deter international students from coming to the UK  could lead to universities going under,” Grady added.��

Tim Bradshaw, chief executive of the Russell Group, said reducing the length of post-study work on will make the UK less competitive internationally, but welcomed PhD students being exempt from the new rules.

“It’s now crucial that we continue to make international students feel welcome and valued, and provide a stable policy environment to give the sector confidence in recruiting globally,” Bradshaw said.��

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The proposed levy on international student income will be a serious concern for universities already making difficult decisions to safeguard their financial future, he added. Its use only in England “sets up a further divergence in HE rules and funding levels across the UK that will need careful analysis.”

tom.williams@timeshighereducation.com