The Parliamentary Under-Secretary of State, Home Office (Lord Taylor of Holbeach)
My Lords, I thought today’s debate would be interesting—and not just for the content—but it has been challenging, particularly given the time pressure that noble Lords were under to make their points. I genuinely regret that oratory has had to take second place in this rapid-fire debate. But I do not think that has diminished the effectiveness of the debate. Certainly noble Lords have been able to express their views plainly. I am here to respond to them.
I am very grateful to my noble friend Lord MacGregor of Pulham Market for enabling this important issue to be debated. I hope that I am going to be able to present where we are—because I think there is a strong collective sense about this particular topic in your Lordships’ House—and explain what the Government’s position is.
I hope also that given the very large number of speakers in a relatively short time—I will be acknowledging some of the speakers but I will not be able to acknowledge them all—noble Lords will permit me to write a commentary after the debate, send it to all noble Lords who have spoken and place a copy in the Library. Given the seriousness of the issue we are discussing, I think that would be an appropriate way of handling it, and I hope that noble Lords will agree. I will use the limited time I have to express the Government’s position and to make it plain that there is a lot more that we—the Government and Parliament—have in common on this issue than might be supposed.
It has been a vigorous debate. I wrote down that “many” noble Lords made, to a lesser or greater extent, some criticism of the Government’s position. As we went along, I changed that to “most”.
Lord Taylor of Holbeach
Perhaps I ought to say “all”. But we have in common a sense of regard for the universities of this country. I acknowledge these concerns. I would like to present the Government’s policy, because there are in this area some misapprehensions, which have been manifest to me today, and I hope that noble Lords will understand that I wish to put them right.
The starting position is that the Government recognise the important contribution that international students make to the UK’s economy and society. Many noble Lords referred to this. The noble Lords, Lord Wilson and Lord Bilimoria, and many others did so. Talented overseas students help make our education system one of the best in the world. They contribute to making it one of the best in the world. Only the United States has more universities ranked in the global top 100. My noble friend Lord Phillips of Sudbury said this, as did many others.
The Government want to promote our education system to spread British influence around the world. We want to attract and retain the brightest and best students who can drive growth in our economy. These points were made by noble Lords and are being made by the Government. We want our renowned institutions, our universities, to thrive. I beseech noble Lords to separate our shared objective, which I hope that I have demonstrated, from the rhetoric. We want to see our universities prosper and act as a focus for extending Britain’s influence around the world, stimulating both academic life and our economy at home.
That is why we have not placed a cap on the number of international students who can come and study in the UK. There is no cap. The noble Lord, Lord Stevenson, should know that there is no policy on numbers. The noble Lord, Lord Hannay, talked about a policy biting on numbers. There is no policy on numbers. There is no limit on numbers. Providing that a student is going to a reputable institution—a topic to which we might turn later—has the right qualifications, enough money and adequate English, they can come to the UK and there is no annual limit on numbers. The changes that we have made are reasonable ones to ensure that basic minimum standards are met. The Government take every opportunity to make it clear that talented students are welcome here. I think that noble Lords will support that sentiment, too.
At the same time, the Government have had to take action to address the abuse of the student visa route. I remind noble Lords of the problems that the Government inherited with this particular visa provision. Under the previous system, too many private colleges were selling visas and not education. These arrangements failed to control immigration and protect legitimate students from poor-quality sponsors. The National Audit Office estimated that in 2009 up to 50,000 students may have come to the UK to work, not to study. Student visa extensions were running at more than 100,000 a year. Some serial students were renewing their leave again and again without tangible progression in their studies. A Home Office study in 2010 found that up to 26% of those studying at private colleges may not have been complying with the terms of their visas.
It does our shared cause no good if we cannot build a sustainable role for our universities in educating international students, and it does us no good if Governments ignore that sort of assessment.
Lord Howarth of Newport
Will the Minister also confirm that the Home Office has found that only 2% of international students in higher education institutions are not compliant with the conditions of their visas?
Lord Taylor of Holbeach
That is why the Government have tackled the problem of private colleges being able to sponsor students. This does not apply to universities. I make it clear that there is no limit on the number of students that universities can sponsor.
The Government have overhauled the student visa regime to tackle bogus providers, which I think noble Lords will fully understand, and to drive up educational quality and standards. The fall in the number of student visas has come entirely from those sectors where abuse was most prevalent. As a result of our tighter controls, almost 600 colleges have been removed from the UK Border Agency’s register of providers. These measures have helped improve the reputation of UK education overseas and helped protect students from unscrupulous providers.
All colleges recruiting international students must now pass an inspection of their educational quality by an independent oversight body such as the QAA. Every institution must become a “highly trusted sponsor” and renew that status annually with the UK Border Agency. The Government have also introduced tougher requirements for students. These include higher standards of language competence and limits on the duration of student visas. Students extending their visas must now show that they are making genuine academic progress. We have removed the right to work from those attending private colleges. This was attracting too many students for the wrong reasons. The Government have also introduced a new power to allow UK Border Agency officials to refuse a visa when they are not satisfied that the applicant is a genuine student. These measures to tackle abuse have resulted in an overall fall in net migration, and the number of visas issued is at its lowest since 2005.
Despite this—and this is the key point to make in response what I think was the thrust of noble Lords’ arguments today—these reforms have protected our world-class universities. We have designed our system to favour our higher education institutions. Universities have been given some flexibility in how they test language skills. University students still have very generous working entitlements during their studies—20 hours a week during term time and full time, if they wish, during vacations. They can also undertake work placements amounting to 50% of their course. Postgraduate students at universities can bring dependants to the UK. There are also plenty of opportunities to stay on and work in the UK after study, and we are extending these further for the brightest and best—I hope to come back to that point a little later. When we announced these changes, Universities UK welcomed them as allowing,
“British universities to remain at the forefront of international student recruitment”.
As the Government have reduced the number of student visas overall, the latest Higher Education Statistics Agency figures show an increase of 1.5% in the number of international students at universities, at a time when UK entrants have fallen. Listening to the debate today, some noble Lords unfamiliar with the subject might have been left with the impression that the number of overseas students wishing to come to our universities was declining. In fact, the university sector now accounts for three-quarters of student visas—up by about half in the year to September 2011. I know the latest UCAS statistics are only partial, but the statistics released yesterday show that this year new applications to UK universities from non-EU nationals are up by nearly 10% compared with this time last year. We await the final numbers, but I am sure that noble Lords will acknowledge that this refutes the suggestion that this country no longer has an attractive offer to present to higher education undergraduates.
There has been much discussion today about changes in numbers coming to our universities to do particular courses or coming from particular countries. In fact, last year’s HESA statistics show that of the top 10 originating countries, seven showed increases. From China there was a 17% increase and from the US a 5% increase. UCAS, as I said, has received 10% more applications from Chinese students compared with this time last year, and there is a 19% rise in applications from Indian students. Therefore, nothing inherent in our reforms is deterring international students. We need to consider whether in certain countries there are particular factors in play. We should be positive in our confidence that we have got this matter right. Universities themselves—and, if I may say so, vice-chancellors, chancellors and all the distinguished academics here today—should take the opportunity to make it clear that Britain will always be open to bright international students.
We have also heard today—in particular this was explained by the noble Baroness, Lady Valentine—about the need to remove students from the measure of net migration. The independent Office for National Statistics is responsible for national statistics. In accordance with the internationally agreed definition in place since 1991, these statistics define a migrant as someone changing their normal place of residence for more than a year.
Lord Hannay of Chiswick
In the noble Lord’s latter sentences he was tilting at a man of straw. All of us who have been involved in this understood many months ago that it is not the way the statistics are marshalled that really matters but how the Government apply the policy. This policy has been set out again and again with the Home Secretary and Prime Minister saying that their objective is to get net migration down to the tens of thousands. That is what does the damage. Fixing a separate statistical approach will not do.
The other thing is that the noble Lord has given us a lot of figures. Can he comment on two points in them? First, he has not given any idea of the size of the market and its speed of growth. I think he will find that the market is growing very rapidly and Britain is losing market share. That is surely what matters in business. Secondly, he has not taken on the point that the figures at the moment are being flattered by students on three-year or four-year courses who came to this country before the chilling effect of the Government’s policy took place. I wonder whether he could deal with those points.
Lord Taylor of Holbeach
There is one basic policy—there is no limit on international students coming to this country. That is the fundamental and basic policy. I will not get involved, if the noble Lord will forgive me, in a discussion about statistics. I understand the weakness of arguments based on statistics. However, it is important to emphasise why the Office for National Statistics includes students in the net migration figures. It is because of the international definitions which govern these things. I emphasise to noble Lords that there is no limit on international students coming to this country.
Lord Taylor of Holbeach
I would like to think that it has. I am more concerned whether it has been culturally absorbed by noble Lords. I am doing my best to emphasise to noble Lords that there is no limit on international students coming to this country.
Lord Taylor of Holbeach
Perhaps I may continue, because I, too, am time-limited and I will try to provide a comprehensive reply. I understand noble Lords’ interest in the matter, and I want to assist the House.
One key factor in why we need net migration figures and to note students’ presence in this country is because they are users of services. They form part of the requirements for public services, infrastructure and investment, and we need valid figures on which to base those. If we ignored them as part and parcel of those statistics, that could distort our view of the requirements in those areas. However, I note the arguments of noble Lords on this issue. I can say only that, at the end of the day, there are no limits on numbers.
The UK continues to have a great offer for international students at our world-renowned universities. Just yesterday, Universities UK stated:
“The UK remains one of the most popular destinations in the world for international students looking for a high-quality university experience”.
There is no limit on the number who can come, provided they meet language and academic requirements and can support themselves in the UK. As I said, there are generous work entitlements both during and after their study. Those securing a graduate-level job paying £20,000 a year can switch to a work route, and there are additional opportunities under our graduate entrepreneur scheme.
The Home Secretary recently announced further measures to encourage the brightest and best international students to stay and to contribute to economic growth. All completing PhD students will be allowed to remain in the UK for 12 months to find skilled work or to set up as an entrepreneur. We will add an extra 1,000 places to our graduate entrepreneur scheme.
Baroness Afshar
I beg the Minister’s pardon, but that is not what my students are experiencing. If it costs £10,000 to establish your right to complete your thesis, those good intentions are not reflected in reality.
Lord Taylor of Holbeach
That is not the experience. All the figures seem to show that graduate engagement post-PhD is an increasing area. Indeed, we are doing as much as we can to encourage it through our graduate entrepreneur scheme, as I said, for talented MBA graduates to stay to build businesses in this country. I hope that reassures the noble Baroness and the noble Lord, Lord Wilson, who was concerned about this.
The Government want to send a positive message—not, if the noble Baroness will forgive me for saying so, a negative one—about the prospect of graduate engagement post-degree in this country. The sector needs to take on the responsibility for promoting a positive message. We want to work with universities to protect not just the integrity of the immigration system but the reputation of the British education system around the world, just as my noble friend Lord Lucas said. He made a thoughtful speech and I am happy to organise a meeting for him.
The Government will continue to monitor strictly the adherence of universities as well as colleges to our rules and the UK Border Agency will work with universities on a system of co-regulation to make sure that we enforce student sponsorship obligations and protect the interests of legitimate students. UKBA has had some unreasonable criticism. It is surely right to ensure that we maintain a generous but proper regime for managing these matters. The Border Agency’s decision to revoke London Met’s sponsor licence was the right one. The agency worked with the university over several months to rectify the issues found. The Government took action to protect legitimate students and allow them to keep studying.
It does not serve the reputation of British education to ignore failings of this kind. As we are reducing student visas by tackling abuse, the number of successful applicants to study at British universities is up. This success means we can look forward to a period of stability on student migration policy. That stability will help the Government and universities to give a clear message that the UK has a great offer to international students and that genuine students are welcome here. This offer supports what should be the main attraction for international students—not visa conditions or rights to work but the quality of the education that is to be found in our country.
Baroness Warwick of Undercliffe
Before the Minister sits down, will he answer the specific question about the Government’s targets? Students form the vast majority of migrants coming to this country. The Migration Observatory has estimated that to meet the Government’s target the Government would have to reduce student visa numbers by 87,000. Can the Minister assure us, in assuring us about there being no cap on international students, that the target can be met without reducing by that number?
Lord Taylor of Holbeach
I will answer the noble Baroness but not today. I am well over my time and I think it is proper that I allow the other debates following this to take place.
Lord Phillips of Sudbury
My Lords, before my noble friend sits down, I should be grateful if he would take a brief question.