Immigration Rules (International Students)

Jim Cunningham Excerpts

Wednesday 16th November 2016 Westminster Hall

[Stuart C. McDonald]

Absolutely. There is a feeling of uneasiness among the migrant community more generally in the light of recent events. Again, I urge the Government to rethink their rhetoric about not just students, but migration generally.

[Mr Jim Cunningham (Coventry South) (Lab)]

Like some of my colleagues, I have two universities in my constituency: the University of Warwick and Coventry University. Students from abroad certainly make a major contribution—about £9 billion per year—to the British economy. That is a hefty sum. To put that another way, 380,000-odd students come to this country per annum. The Government are not really friendly towards students. As some colleagues will recall, the Government abolished the education maintenance allowance, and they do not show much enthusiasm even for apprenticeships and further education.

[Stuart C. McDonald]

I agree with much of what the hon. Gentleman says. International students’ contribution to GDP is actually now £10 billion—even higher than the figure he quotes.

I will finish my praise for international students by turning to the St Andrews University students’ association, which put out a statement this morning that I think sums things up nicely:

“Universities... owe much of their value and their success to their diversity. Without a student or staffing body comprised of people of all races, religions, class or political allegiance, we cannot and will not achieve the level of quality—in research and personal character—to which the UK is accustomed. By mixing, debating, and learning from those with varied views and cultural backgrounds, we become better, more rounded, more tolerant and accepting individuals.”

Those views are broadly shared by around three quarters of our own students, according to a Higher Education Policy Institute survey.

Turning to where we are now, the UK has for some time been a world leader in attracting international students, but that reputation is in jeopardy.

[Stuart C. McDonald]

I agree wholeheartedly. I will turn later to the contradiction that on the one hand, the Treasury appears to be all for increasing our education exports, but on the other, the Home Office includes students in its net migration target and therefore sees them as a ready target for trying to clamp down on migrant numbers.

In 2014-15, of the around 2.27 million students at UK higher education institutions, more than 125,000 were from other EU countries and more than 300,000 were from non-EU countries. In the most recent year that we have figures for, overall international student numbers just about held up, but the number of new entrants fell by 2.8%. Figures from June this year show that the number of study-related visas granted by the UK fell by 5% from the previous year. The British Council has stated that the UK is beginning to lose market share to competitors.

There are serious concerns about the UK’s performance in attracting students from key markets. The number of Indian students enrolling in their first year at UK universities fell by 10% in 2015 compared with the year before. The number of Indian students studying here has fallen by around 50% in the four years since the UK Government started to turn the screw while our rivals were all improving their offer. It is no coincidence that there is now a record number of Indian students in the US, which has, for example, opened up post-study work schemes.

Where do we want to go from here? If any other industry brought such a wealth of benefits to the country, the Government would be mad not to pull out all the stops to go for growth. Education is one of the UK’s most successful exports. In what other export market would we say that we were not going to bother so much with expansion and we were quite happy to see our rivals catch us up and overtake us?

The Government’s official ambition is for education exports as a whole to be worth £30 billion by 2020. In last year’s autumn statement, the Chancellor projected that the number of non-EU students in England alone would rise by just over 7% in the next two years and by 3.2% in the two years after that, but if the 0.6% increase in student enrolments last year is anything to go by, the Government’s goal, modest though it is, has no chance of being met.

The Government must be much more ambitious. While our share of international students is beginning to falter, international student numbers are growing much more significantly and strongly in countries such as the US, Australia and Canada—in fact, those countries are in a completely different league from us. International student numbers are expected to grow significantly around the world in the years ahead, so the opportunities are there if we want to take them, but countries such as Canada, Australia, Germany, New Zealand, China, Japan and Taiwan often talk about doubling their number of international students by 2020 or 2025.

Our universities are alarmed about the implications of Brexit, so the Government must step up to the plate to reassure rather than seek to complete what essentially would be a triple whammy, with another crackdown and a persistent failure to listen to rational arguments about a post-study work visa. One of the key underlying problems is, as the hon. Member for Hampstead and Kilburn (Tulip Siddiq) said, the inclusion of students in the net migration target. At best it seems inconsistent for, on the one hand, the Treasury to be targeting an increase in education exports and, on the other, the Home Office to be quite clearly seeing student numbers as a target for reductions.

To make matters worse, the Home Office appears to be motivated by international passenger survey statistics and a belief that about 90,000 students are not leaving when their courses end. That is not a good thing, because serious questions about the accuracy of those figures are now being asked not just by me, but by the UK Statistics Authority, the Select Committee on Public Administration and Constitutional Affairs, and the Institute for Public Policy Research, just by way of example. The main reason for the concerns is that the figures suggested by the Government are completely out of kilter with many other sources of information, from Home Office longitudinal studies to the destination of leavers survey and the annual population survey. We are talking about not just a few hundred students here and there, but many tens of thousands.

As the Minister will know, just a few weeks ago an article appeared in The Times that suggested that the Home Office has in its hands an independent analysis that shows that just 1% of international students break the terms of their visas by refusing to leave after their courses end. Sadly, as I understand it, the Home Office has refused to share that study with other Departments, never mind with MPs or the public. Perhaps the Minister will explain why.

[Mr Jim Cunningham]

Has the hon. Gentleman considered that there is another dimension to this? Universities such as the University of Warwick export knowledge to different countries. They set up various sub-universities, for want of a better term.

[Stuart C. McDonald]

That is a good point that we should bear in mind. The export of education takes the form of not just attracting international students, but physically building campuses and other institutions abroad.

I ask the Minister to explain what is happening with the study that we are not allowed to see, because that study almost certainly takes into account new exit checks, which have been in place for about 12 months. Using exit checks and cross-referencing other data sources gives us a tremendous new opportunity to get a proper handle on student migration patterns. It simply is not common sense for the Government to press ahead with new goals for reducing student numbers until such time as the assumptions on which the proposals are based are thoroughly tested.

I know from speaking with the Office for National Statistics just this morning that it is taking on a body of work to look at this issue and that it will today put some information on its website to explain the nature of that work. Will the Government therefore undertake to share the exit check data with the Office for National Statistics, which is important for its work, and will the Minister wait until that work is complete, rather than pressing ahead with any rash policy decisions?

I turn finally to the policies we need, if hon. Members agree with me that we should be going for growth. What policies would allow us to do that? The obvious first answer is that we need to up our game on post-study work offers. Post-study work is something that our competitor countries are using as a key means to attract talented international students, and they are doing it much better than us. Canada has three-year visas with no salary threshold and New Zealand has one-year visas with no salary threshold. Australia conducted a big review on the subject back in 2010, when it was beginning to struggle to attract international students, and, lo and behold, it proposed a two-year post-study visa with no salary requirement, just like we used to have here, and now it is much more competitive than we are.