The Minister of State, Home Office (Baroness Williams of Trafford) (Con)
My Lords, I begin by thanking my noble friend Lord Lucas for initiating this incredibly popular debate, which attracted almost 20 speakers, and also welcome to her place the noble Baroness, Lady Chakrabarti, and congratulate her on her maiden speech. Like me, she is an immigrant, and also like me, she sounded quite emotional speaking in this House for the first time. I have to say that I felt exactly the same. I look forward to hearing from her, as the years go on, in this House.
It should come as no surprise to anybody that on the subject of higher education, noble Lords bring unparalleled experience. I felt quite humble listening to some of the background stories and hearing about some of the universities with which noble Lords are associated. I have to say—although noble Lords may not agree with me—that I do not think there is any real difference of opinion between any of us on this topic. We all share the desire to ensure that the United Kingdom continues to attract the best and brightest international students to study here. High-quality international students enrich the intellectual life of the institutions where they are studying. As the noble Baroness, Lady Warwick, says, they increase the soft power of the UK as a country, and they enhance the experience of the domestic students here. I hope that, as the noble Lord, Lord Kennedy, says, they return to their home countries with fond memories of their time in the United Kingdom.
We already have an excellent offer for international students, which is why the UK remains the second most popular place in the world to study, behind only the United States. There is no limit on the number of genuine international students who can come here to study. That is a very important point. We do not propose to cap or limit the number of overseas students who can come to study in the UK.
Our approach is based on two key principles, which I hope will be shared by all noble Lords. First, we want to ensure that UK education institutions can attract the best and brightest. Secondly, we need to be vigilant and guard against abuse of the student migration route. I do not want to bring politics into what has been a bipartisan debate, with very good contributions from all around the House, but I have to say that the student immigration system the Government inherited in 2010 was a mess. Abuse was rife, and steps needed to be taken to restore it to a sensible state. Some 920 institutions have had their right to sponsor overseas students removed, and the effects are clear to see. The proportion of overseas students now attending higher education institutions has risen by 16%—from 143,000 in 2010 to 166,000 in 2015.
I would not want your Lordships to interpret this as an attempt to restrict those who are genuine in their desire to study. Visa applications from university students are now 14% higher than they were in 2010. Visa applications to Russell group universities, of which much mention has been made today, are 39% higher than in 2010. The grant rate for tier 4 general visa applications has increased every year since 2010, and 94% of such applications were granted in 2015.
Of course, applications from some nationalities are down, as the noble Lord, Lord Bilimoria, pointed out. I shall address that later. Equally, applications from other nationalities are up, particularly from Chinese students. There are natural fluctuations, but the fact that overall applications to universities have increased in the last five years is encouraging and suggests that any particular falls should not be attributed to Home Office immigration policies.
This Government are determined to help our best institutions attract the best international talent from around the world. Let me give noble Lords a recent example. We recently launched the tier 4 visa pilot. Four institutions, the Universities of Bath, Cambridge, Oxford and Imperial College, chosen because of their consistently low visa refusal rates, are piloting a scheme whereby certain visa eligibility checks have been delegated to the universities and the documentary requirements for students taking part are reduced. The students also have additional leave at the end of their course to enable them to take advantage of the UK’s post-study work offer. Monitoring of the pilot is ongoing and the results will be evaluated to inform any decision to roll out the pilot more widely. However, if it is a success—I hope that this addresses the point raised by the noble Lord, Lord McConnell—I hope that other high-quality institutions in the UK will be able to benefit. The noble Lord asked about publishing specific data on the pilot. We have not done so, as it is commercially sensitive information.
As the Home Secretary recently announced, we will be seeking views on study immigration routes. I encourage all interested parties—which will, I am sure, include many of your Lordships and the institutions with which noble Lords are associated—to participate and ensure that every point of view is heard.
I shall deal with some specific points raised during the debate, and I hope I can get through every one of them—but poor noble Lord, Lord Kennedy, is always last on the list because he winds up for the Opposition, and I may well have to write to him. However, I shall address the first answer to him, because I have just had inspiration from the Box. He asked why we cannot have two sets of immigration figures, like the USA. Another noble Lord asked the same question. Net migration statistics are not produced by the Home Office but by the ONS, the UK’s independent statistical authority. I hope that answers the question.
Several noble Lords—the noble Baronesses, Lady Smith of Newnham and Lady Royall of Blaisdon, the noble Lord, Lord Trees, my noble friends Lord Lexden and the Duke of Wellington, and others I am sure—suggested that students should be removed from the net migration statistics. I make the point that the ONS has drawn up these statistics. The Government trying to influence the production of independent statistics might be seen to help the Government achieve a manifesto target.
Like Australia, Canada and New Zealand, the Office for National Statistics includes international students in net migration calculations. International students who stay for longer than 12 months have, like other migrants, an impact on the infrastructure and services that they use and the communities in which they live. Only yesterday, the ONS released a report which stated that the net migration figures are used to calculate the size of the UK population in any given year, and that they include international students since they contribute to population growth. I make one final point on that, because I think it is important. Changing the way that we measure migration would not make a difference to our student migration policy, because there continues to be no limit on the number of genuine international students who come here to study.
Baroness Williams of Trafford
I am very reluctant to sit down because I have very little time.
Baroness Smith of Newnham
Can the noble Baroness explain how that fits with an immigration target of tens of thousands?
Baroness Williams of Trafford
I was just saying to the noble Baroness that, because we do not place a limit on the number of students, the fact that the ONS includes students in the migration statistics does not impact on students’ abilities to come here. I do not know if I have made that very clear; the noble Baroness does not look very convinced. If I could make progress and she could look at Hansard, perhaps I could make it clear in writing as well.
My noble friend Lord Lucas and the noble Lord, Lord Shipley, asked the initial question, “What is the problem?”. I do not think we are anything but in agreement that international students are absolutely vital to the UK, whether it is in medicine, engineering, or anything else. But we must remain vigilant, maintaining safeguards against the types of abuse that we saw previously. We will be inviting views on what more we can do to strengthen the system to support our excellent higher education institutions and those that stick to the rules to attract the best talent.
The noble Baroness, Lady Smith of Newnham, asked me to confirm that the Home Office will think liberally and openly about EU students. The Prime Minister has been very clear that she wants to protect the status of EU nationals already living in the UK. The only circumstances in which that would not be possible is if British citizens’ rights in other EU member states were not protected in return. There will be no immediate changes to the immigration status of EU students or the way that universities are able to recruit students.
My noble friend Lord Lexden asked about minor infractions being reported to UKVI, resulting in heavy sanctions being unfairly imposed. Sponsors benefit directly from migration and are expected to play a part in ensuring that the system is not abused. They must therefore fulfil certain duties to ensure that immigration control is maintained. We already apply discretion to sponsors who have fewer than 50 international students when they undergo their annual compliance assessment and we do not apply sanctions lightly.
The noble Baroness, Lady Royall of Blaisdon, asked whether we could introduce a post-study work route for STEM students and nurses. The post-study provisions we have in place must strike the balance between providing competitive options for the brightest graduates from around the globe and maintaining safeguards against the type of widespread abuse that was seen under former post-study work schemes. The noble Baroness also said that the Times report suggested that only 1 per cent of students overstay, and asked why we therefore needed to review the student visa system. We think that the reforms we have made in the last few years have worked and greatly improved compliance. However, that does not mean that we can be complacent. We will shortly be consulting on non-EU work and study immigration routes.
Baroness Royall of Blaisdon
All I asked for were the data. Can we see the facts with the data?
Baroness Williams of Trafford
My Lords, I can reply to the noble Baroness in writing. As the noble Lord, Lord Green, said, it is prudent to await clarification before policy decisions are made. However, I will get more detail to the noble Baroness on that if I can.
The right reverend Prelate the Bishop of Winchester and the noble Lord, Lord Bilimoria, talked about the recent visit to India, and the fact that the number of Indian students coming to the UK has dropped. We issue more tier 4 visas to students from India than any other country except China and the US, although I of course accept the point made by the noble Lord. We have seen increases in the number of student visas granted elsewhere to China and Indonesia in the year ending March of this year. The proportion of Indian students coming to study in the UK has increased from 50% in 2010 to around 90% in 2015, so the trend of smaller volumes of students with greater concentration in higher education is likely to reflect the recent policy changes to clamp down on immigration abuse by non-genuine students and bogus colleges.
The noble Lord, Lord Lipsey, talked about tier 2 salary thresholds being too high. For the most part they are based on the annual survey of hours and earnings—ASHE—published by the independent ONS. The salary requirements were based on advice from the Migration Advisory Committee, which is an independent body made up of labour market economists.
The noble Lord, Lord McConnell, said that the Fresh Talent Scheme worked, and that therefore Scotland needs a post-study work visa. The Fresh Talent Scheme operated in Scotland between 2004 and 2008. That scheme placed few restrictions on those who wanted to stay in the UK to work post-study and granted free access to the whole of the UK labour market. Evidence published by Scottish Government Social Research in 2008 found that only 44% of applicants had remained in Scotland at the end of their two years’ leave and a significant proportion were not in skilled work. We do not intend to return to the post-study work visa. That does not necessarily lead to skilled work.
I keep getting notes saying that I have two minutes left, then notes saying that I have no minutes. However, I think that I have probably outstayed my welcome at the Dispatch Box. I thank all noble Lords who have participated in the debate. I thank the noble Baroness, Lady Chakrabarti, once again.
Baroness Warwick of Undercliffe
As the noble Baroness sits down, I simply ask her to also address in the written notes that she sends us the issues about differentiation of quality that I raised in my presentation.
Baroness Williams of Trafford
The noble Baroness absolutely did and I will respond to that. In fact, she made another point about the TEF, which I will address as well.