Post-study Work Schemes

Chris Law Excerpts

Thursday 8th December 2016 Westminster Hall

[Chris Law (Dundee West) (SNP)]

It is great to see you in the Chair, Mr Rosindell, and to follow two comprehensive and compelling speeches on the reintroduction of the post-study work visa.

Frankly, the Government’s current immigration policy is completely failing Scotland. When gathering evidence for the Scottish Affairs Committee, we found that international students without doubt have an enormous positive impact on Scotland. That was recognised in all of the evidence we gathered from everyone we spoke to during our evidence sessions, including the Scottish and UK Governments. Not only do non-EU international students contribute an eighth of the total income of Scottish higher education institutions, it is also estimated that they contribute more than £400 million in off-campus expenditure.

In addition to those financial benefits, bringing together students from different nations creates a global environment in Scottish universities that benefits both the UK and international students. If that is not enough, it has even been backed by the UK Government’s own statistics. The Home Office has estimated that the number of non-EU international students moving to work visas after their studies has fallen by more than 80%. The Home Office could not provide separate figures for Scotland, but the evidence the Committee collected showed that the impact on Scotland, where higher education is the third largest sector, is both significant and, sadly, negative.

Scotland has different demographic needs from other parts of the UK, as we found in the Scottish Affairs Committee’s most recent report, which was published only a couple of weeks back. That is due to slower population growth and a need to expand the size of the workforce. Scotland also faces significant skills shortages in a variety of sectors. Retaining non-EU international graduates to work in Scotland is an important element of the response to those challenges. The report also recommended that the UK Government work constructively with the Scottish Government to introduce a formal scheme to allow international students graduating in Scotland to remain and contribute to economic activity. That principle enjoys cross-party support in Scotland, as well as being strongly backed by the business sector.

Given that two published reports have said more or less the same thing, it is now clear that the UK Government must act—and swiftly. To put that into perspective, I am blessed with not one but two universities in my constituency of Dundee, both of which have felt a huge impact since the UK Government ended the tier 1 post-study work visa. Indeed, the principals of both Dundee University and Abertay University have been vocal in their support for post-study work schemes that attract international students, all of whom make a valuable contribution to university and city life.

Professor Pete Downes, principal of the University of Dundee, said that an improved post-study work visa would

“put Scotland back on a competitive footing with universities in Australia, Canada and New Zealand. It would make life a lot easier for employers and it would help to address Scotland’s skill gaps”.

Only yesterday, when taking evidence on Scotland’s place in Europe, the Scottish Affairs Committee listened to economist Professor Anton Muscatelli describe the post-study work visa as a “hugely beneficial scheme”.

The Scottish Affairs Committee laid out several options for improving post-study work routes, ranging from minor changes to a more substantial overhaul, all of which could be readily implemented and would solve many of the challenges that both employers and international graduates face in Scotland. Those proposals, which are both pragmatic and feasible, include extending the length of time that tier 4 visa holders have to find a tier 2 job; creating what can only be described as a bridge visa, to give international graduates sufficient time to find a tier 2 job; having regional salary caps for tier 2 visas, to reflect different wages across the UK; and reducing the burden to employers of tier 2 sponsorship.

It goes without saying that all the evidence the UK Government have received through our Select Committee report has been completely disregarded. They seem more driven by ideology than pragmatic outcomes. I am extremely disappointed by the UK Government’s response to the report. They completely rejected calls for a more flexible post-study work visa system for international students in Scotland. The report and recommendations, which were based on extensive discussions with businesses, universities and immigration lawyers, were disregarded by the Immigration Minister, who claimed in the Government response—this has to be the best euphemism I have ever heard—that the work visas already available to international graduates

“comprise an excellent post-study work offer”.

It is interesting to note that even after dismissing our findings, the UK Government are now trialling a new tier 4 visa for some postgraduate students in four universities in England, and—would you believe it?—not a single Scottish university has been included in that pilot. When will the UK Government listen? The calls from Scotland for a more flexible post-study work visa are overwhelming, but they have so far fallen on deaf ears.

[Mr Goodwill]

The hon. Gentleman talked about salary levels in Scotland. May I respectfully point out that salaries in Scotland are higher than in the UK as a whole? That means if we were to apply regional salary requirements, the minimum salary required to sponsor a tier 2 migrant in Scotland would be higher than it is currently, using the UK-wide data.

[Chris Law]

I hear the Minister’s point, but I do not know of any students who graduate from university and find a starting salary of £20,800. The problem is where the threshold begins, which makes it almost impossible for people to continue to work straight after leaving university.

What is the point of spending week after week gathering evidence from different voices from across Scotland when no one is listening? The Government’s immigration policy in no way recognises Scotland’s needs or serves our economic and societal interests. Work study visas are not in isolation. The Government continue to resist pragmatic change that would not only help Scotland to attract international students but support the impact of Scotland’s ageing demographic. What would really benefit Scotland is the full devolving of immigration power, so that we can ensure Scotland’s thriving future.