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UK Plans Graduate Visa Cut and Levy on Overseas Student Fees

Policy Exchange wants to end the graduate route for taught students by requiring a £10,000 deposit, prompting universities to warn of financial and reputational damage.

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The number of international students in the UK increased by 66 per cent between 2014-15 and 2023-24

Overview

  • The Home Office is consulting on White Paper proposals to reduce post-study stays from two years to 18 months and introduce a potential 6% levy on international tuition income.
  • Policy Exchange has urged restricting the graduate visa to postgraduate researchers and imposing £10,000 surety deposits to deter visa misuse.
  • Official data show international student numbers climbed 66% to 732,285 between 2014/15 and 2023/24, with 40% switching visa categories within a year in 2023.
  • Universities UK and the Russell Group caution that tighter post-study rules and levies could threaten university budgets and the UK’s competitiveness in the global education market.
  • London business bodies warn that tougher visa reforms risk harming regional economies and call for measures that balance migration control with sector growth.