Paul Blomfield
Main Page: Paul Blomfield (Labour - Sheffield Central)Department Debates - View all Paul Blomfield's debates with the Home Office
(13 years, 2 months ago)
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It is a pleasure to open the debate with you in the Chair, Mr Benton. I thank the Backbench Business Committee for allocating time for consideration of this important issue. My request was supported by hon. Members from all three main parties. In that spirit of consensus, I will begin by endorsing the words of the Home Secretary when she made her statement on student visas to the House:
“The UK has a worldwide reputation for providing quality education to overseas students, and Britain is rightly the destination of choice for many people wishing to study abroad”.—[Official Report, 22 March 2011; Vol. 525, c. 855.]
Indeed, that reputation—that quality—has made UK education a major export. My constituency includes both our city’s outstanding universities—Sheffield, where I spent most of my working life, and Sheffield Hallam, where I was a governor for seven years in its previous incarnation as Sheffield City polytechnic. The issue is critical for those institutions, as it is for many across our country. Some 12% of the university of Sheffield’s income—a total of about £50 million—derives from international student fees, with more than £20 million of Hallam’s income coming from the 10% of their students who come from overseas. In addition, the two universities estimate that their international students spend around £90 million a year in the Sheffield city region.
We also have Sheffield college, with 300 overseas students contributing £1 million in fees and probably a further £1 million in local spending. Also in my constituency is Sheffield international college, which provides language courses for up to 1,000 students a year paying £10 million in fees and contributing up to £15 million to the local economy. Overall, international students contribute approaching £190 million a year to Sheffield’s economy. Just pause to think about that in terms of the number of jobs and businesses they support in just one city.
The UK is the second most popular student destination in the world after the United States. Overall, the international student market is estimated to be worth £40 billion to the UK economy. It is a growing market in which we have been increasingly successful. From 2000 to 2008, our world market share rose from 1% to 11%, while at the same time the US share dropped from 24% to 19%, so there is a lot at stake in the changes that we make to our student visa system.
I congratulate the hon. Gentleman on securing this debate. I support the Government in wanting to have robust checks on the level of students coming in, but there is a particular issue for this year where offers have been made. The universities thought that they could have some discretion on how the English tests were set. Where offers have been made, there is a particular issue this year, given that the proposals are so prescriptive. Does he agree with that point about the time scale?
I thank the hon. Gentleman for that intervention, because I very much agree with that point. It is one that I intend to come to. There are two issues that we need to cover: the proposals overall, where relatively small changes would make a significant difference, and the transition to the new system.
I accept that the Government recognise the significance of the changes and the enormous concern that exists within Parliament and across the sector. In their consultation on the original proposals, the Home Office received more than 30,000 submissions. I recognise that the Government made significant changes that were widely welcomed within the sector, but there remain significant points of concern that our universities and colleges believe will threaten recruitment and therefore threaten our economy. Indeed, as hon. Members will be aware, the Home Office impact assessment, published on Monday, demonstrated that the proposals were likely to cost the UK economy a shocking £2.4 billion, and perhaps up to £3.6 billion.
Does my hon. Friend agree that the impact is devastating for English language schools in my constituency? They have already been devastated in terms of applications as a result of the changes. If we look at the turnout today, the geographical spread of hon. Members’ constituencies, and the number of them present, shows that there is a serious problem that the Government need to get a grip on.
I very much agree with my right hon. Friend’s point. There is concern across the sector, in higher and further education, in language schools, and, indeed, across the whole country. Judging by the hon. Members present today, I am sure that will be reflected in the contributions to the debate.
I do not believe that the Government are deliberately seeking to damage the economy through these measures, but, by their own assessment, that will be the effect. Over the past few weeks, Ministers have told us that good government is about listening, pausing the legislative process and making changes to get things right. Student visas are another issue where changes are needed to get things right, so let me move to the areas that I believe need attention. First, on English language requirements, my point is not about fundamental change to the Government’s proposals, but about getting implementation right. Let me start with universities. The UK Border Agency’s statement of intent for the new system, which was published in March, stated that:
“We will allow higher education institutions to choose their own method of assessing the English language competence at B2 level.”
However, the subsequent UKBA clarification document, which was issued in April, requires higher education institutions to demonstrate B2 levels of competence in all four components. It also says that, if there is any doubt about a student’s language, UKBA is likely to ask them to undertake their own approved tests—it is a crucial point—even if the institution has made an unconditional offer. That clearly conflicts with UKBA’s own statement of intent. In my constituency, Sheffield’s universities accept only students with good English, but they do not currently require students to meet the specific subset scores now demanded by UKBA; they do not need to.
Only this week I was talking to the vice-chancellor of the university of Sheffield. He gave me the example of what he described as a brilliant physics PhD student who had contributed enormously to one of his research groups, but who probably would not have passed the language requirements.
My own university, Keele, has a strong record in attracting overseas students. It also makes a vital financial contribution. The vice-chancellor has written to me about the changes. Keele has more than 1,700 offers outstanding at the moment, many of which have to be summarily revisited. Like my hon. Friend’s universities and most other universities, it accepts only students with good English capabilities, but it now finds its discretion has been removed. Will he urge the Minister and the Government to reconsider the issue, particularly with regard to any unintended consequences?
I thank my hon. Friend for his intervention and join him in urging the Minister to look again at that issue. We should trust the universities to determine adequate levels of English competence. After all, they have, through their own initiative and ability, developed our education into this worldwide export earner.
My hon. Friend is making an excellent speech. He talks about the offers that universities have made that may now have to be withdrawn. The vice-chancellor of the Manchester Metropolitan university, whose views will be very similar to those of people up and down the land, said to me that he is now in the difficult position of having
“to notify students who have accepted offers that they must now meet new conditions. We are also concerned about the legal ramifications of altering the terms of offers already accepted.”
In other words, the universities could be sued and lose out financially above and beyond the visa withdrawal.
That is absolutely right. This afternoon, we need to consider the transitional arrangements for the introduction of these new requirements and the position in which they put our universities.
The hon. Gentleman is making some sensitive contributions on this important issue. In response to an earlier intervention, he talked about trusting our universities to assess English. Does he also accept that we are going through a period of time in which that trust in some colleges has not been something that we can rely on? How would he ensure that immigration student visas are there for valid educational reasons and that there is enough scope and control, while, at the same time, allowing that amount of trust to the colleges that he is talking about?
The hon. Gentleman raises an important point. Part of the difficulty with this debate is that it has focused on discouraging international student numbers from the demand side. We should be looking at it from the supply side by dealing with those institutions that forfeit trust. I agree with the highly trusted sponsor system, which is the same trajectory of policy as that of the previous Government.
I congratulate my hon. Friend on securing this debate. Overseas students are absolutely vital in Oxford both for the universities and the many language schools. Is not one damaging feature of what the Government have done the erection of this huge bureaucratic maze through which institutions have to go? Would Government Members not be complaining rightly about red tape if this applied to any other area of exports? Clearly this issue has been exempted from the red tape moratorium. Is not the answer to bring forward a system that combines highly trusted status, proper inspection and a proper operation of country risk profiles?
My right hon. Friend makes an important point from his huge experience and from the fact that there are two excellent universities in Oxford and I certainly agree with him.
Let me move on to the problems that have been created by the speed of implementation. When the Home Secretary was announcing the revised tier 4 arrangements in March, she said:
“We recognise the need to implement these changes in a staged manner that minimises disruption to education providers and students.” —[Official Report, 22 March 2011; Vol. 525, c. 858.]
We all know, I think, that that is not happening. The new requirements took effect on 21 April at an advanced stage of the university’s admission cycle and at a point where a number of offers had been made and, crucially, had been accepted. In Sheffield, our two universities and Sheffield international college had already made more than 20,500 offers to prospective students for degree-level courses and currently have 1,300 offer holders and applicants for English language programmes. All those offers have to be revisited as applicants may now no longer meet the UKBA’s new subset score requirements. The colleges must now notify students who have accepted offers and who, therefore, have a legally binding contract with them that they must meet new conditions. They are deeply concerned about the legal ramifications of such a change and the damage that could be done to their reputation. They have to alter the terms of the offers that have already been accepted. Could that not be avoided by having transitional arrangements in place to enable students to be admitted in this new academic year on the terms on which offers have been made?
Let me clarify this matter. If the certificate of acceptance was issued before the new rules came in, the new rules do not apply. There is no retrospection in this. Before this hare is set running, let me stop it because it is simply not true.
I thank the Minister for his intervention, but I have to say that that is certainly not clear to our universities.
Does my hon. Friend share the concerns expressed by the university of Nottingham in my constituency? Not only were these changes implemented very quickly, but detail on the changes is released in policy guidance and is changed on numerous occasions. The university says that the UKBA’s list of approved English language qualifications in the policy guidance changed numerous times between 21 April and the end of May, which is when there is a peak in the number of admissions that the university has to deal with.
My hon. Friend makes an important point. It goes back to the fact that the Government are not achieving the Home Secretary’s desired intent, which is to ensure that these changes are introduced in a non-disruptive way.
I return to the point that the Minister made. Clearly, there is confusion within our universities, so it might be helpful if he undertook to liaise with Universities UK to put out a statement saying that all offers made will be honoured without the requirement to meet the new visa regulations—if that is what he said.
If an unconditional offer was made and accepted, the certificate of acceptance would have been assigned before 21 April and that remains valid for six months and therefore for the coming academic year. I met Universities UK and it was as a result of our discussions that the new guidance was put on the website. I am trying hard to meet the needs of both universities and hon. Members in this debate. To those who ask for flexibility and for me to talk to Universities UK, I can say that that is exactly what I have been doing. As a result of that, we have now produced new guidance, and I hope that hon. Members are satisfied with it.
I thank the Minister for that contribution, but there is still some need for clarity. As my hon. Friend the Member for Nottingham South (Lilian Greenwood) has indicated, there is still a great deal of uncertainty. A lot of activity is currently under way in our universities to re-verify the offers that have been made.
I congratulate my hon. Friend on securing this debate. Did he, like me, hear the Minister say that the position was the same for those students who had received an unconditional offer and an acceptance? I am not sure whether I heard the Minister clearly. If that is the case, it does not deal with the many students who had conditional offers, which is one of the problems that the universities and colleges are facing.
That is a helpful observation from my hon. Friend. Will the Minister cover that point in his later remarks?
May I raise another transitional problem that was mentioned to me by the academic director of Sheffield international college regarding its preparatory programmes for the university? Sheffield international college provides pathways programmes. About 600 of its students each year go on to one of our universities in Sheffield. These students came to the UK with a conditional offer to proceed to the university of Sheffield if they succeeded with their language course at Sheffield international college.
They arrived in good faith but now face a change that has required a small number of them to sit additional English exams in their final term so that they can renew their visa. The new regulations require minimum levels of achievement in elements of the English language test that were not required on the students’ entry to the UK. Consequently, they find themselves in the final term of their programme working hard to try to stay in the UK to complete it rather than working hard to achieve their conditional requirements.
In addition, the new requirements came into force on 21 April, during the Easter break, and that has reduced the amount of time that some students have had to fulfil them. Earlier this week, I was contacted by Sheffield international college about four Chinese students in my constituency whose visas expired yesterday. For the past seven weeks, the college has been trying frantically to arrange for the students to sit the new tests, in different places across the country, before their visas expired. The students understand that they have to pass these new tests so that they can apply to extend their visas, but it has not been possible for them to sit the tests because the UKBA testing system has been unable to offer a sufficient number of tests. The system simply cannot match the demand that has been created by the chaos caused by the revisions of the visa requirements. In turn, that has led to three of the students at the college deciding to return to China this weekend. They have been unable to complete their course, their year of study has been wasted and potentially they will be unable to progress on to their degree programmes. How many other students are there across the country in a similar situation and what reputational damage does all that do to UK education internationally?
If those particular students have been asked to return to China, can my hon. Friend confirm whether they have been told that they cannot re-enter the UK for a further five years, on the basis of a failed immigration application, or will they be allowed to return to the UK when they have completed the test?
I thank my hon. Friend for his intervention. I should clarify that the students have not been asked to return to China. They decided to return to China because they have been unable to secure the tests that they now need to sit in order to proceed to university on the basis of their original offer.
I congratulate my hon. Friend on securing this debate. He is, of course, a member of the Business, Innovation and Skills Committee, which visited China earlier this year. While the Committee was there at the end of February and the start of March, robust representations were made—let me put it like that—by both businesses and students in China about the forthcoming visa regime in the UK. The evidence that my hon. Friend has just given reinforces the negative impression that exists in China about the welcome that Chinese students will receive here. Does he agree that that is significant not only for the intake of students from China, with all the benefits that accrue from that intake, but for the long-term relationships, particularly the long-term business relationships, that could accrue from a country that will be a leading global economy?
I very much agree with my hon. Friend. Only yesterday I was talking to the pro vice-chancellor of one of our north-western universities. It has an associated campus in China, which he visited recently. He made the point about the damage that is being done to our reputation abroad. There is another issue to which the Minister might want to refer later. Notwithstanding the changes that have been made, there has been residual reputational damage, which we need to address as a country by working with our universities and colleges on a positive promotion of Britain as a country that is open for business.
My hon. Friend is making a very good case, assisted by the fact that there are about 25 Members here to support him and also by the fact that the Minister has had to intervene regularly to try to clarify the Government’s position.
My hon. Friend has identified two specific problems. First, I have several language schools and other schools in my constituency that are suffering, so I know that there is great competition internationally in this field. We were ahead of the game and now we are behind it. That is causing not only reputational damage but genuine economic damage to very good schools, which may go under because the Government are sending out all the wrong signals.
Secondly, I received an e-mail from Leiths cookery school, which is in my constituency. It was told two months ago that instead of 20 places for non-EU residents, it would have only three. That makes not only a big business difference but a big culinary difference to that school. [Laughter.] We are now becoming a bit of a laughing stock in the international market because the Government are constantly chopping and changing in accordance with a political agenda, which is undermining education in this country.
I thank my hon. Friend for his contribution, which echoes the concerns that I and other Members have expressed.
I now want to discuss a second area of concern, which is the changes that are being made to the post-study work route. Having worked with international students, I know that post-study work opportunities are an important factor in their choice of country in which to study. In a question that I asked when the Home Secretary made her statement on student visas on 21 March, I regretted the fact that she dismissed post-study work and said that international students should simply judge which country to study in on the strength of the academic offers that they received. As anyone who works with or in universities will know, the reality is that the total offer is the critical factor in a student’s choice of which country to study in.
Post-study work provides students with the chance to consolidate their learning in a relevant context and to obtain full value from what has been a considerable investment in the UK educational system. Equally, having talked to companies in Sheffield, I know how much they value the chance to recruit talented international graduates, particularly those with a PhD, for a time-limited period.
In evidence to the Home Affairs Committee’s inquiry into student visas, post-study work was critical. However, we also need to look at the basis of our discussion of student visas. Those who come as students and stay on specifically to work in a particular field because of the degree that they have managed to obtain are actually not migrants at all, because they wish to leave the country eventually. Is it not the point that if they are not migrants they should not even be included in the immigration figures?
I thank my right hon. Friend for his intervention and, having read the Home Affairs Committee’s report on student visas, I also thank him for the quality that that report has added to the discussion of this issue. I very much agree with him about the specific point that he has just made, namely that we should not consider international students as migrants. Certainly immigration is an issue and when I talk to people on the doorstep in my constituency they express concern about it, but nobody has ever expressed to me any concern about students being in Sheffield.
I know that the Minister, when he addresses this issue, will say that we are bound by the requirements of the United Nations, which defines migrants as those travelling to another country for more than 12 months. However, our main competitor in this market is the USA and it has chosen not to define students as migrants.
I congratulate my hon. Friend on securing this debate. Earlier this week I spoke to the vice-chancellor of Lincoln university and she told me that the current arrangements for post-study work gave the UK a competitive edge in the market for international students. Does my hon. Friend share that view and, indeed, has he culled that view from universities across the country?
I thank my hon. Friend for his intervention. That view has certainly been expressed to me on many occasions by many vice-chancellors. It also reflects my experience of working with international students. As I said earlier, this is a market in which we have been spectacularly successful, growing our world share of it from 1% to 11% at the same time as the USA’s world share of it dropped. One of the contributory factors in that decline in the USA’s world share was the way in which the USA messed around with its own visa requirements during that time.
I congratulate the hon. Gentleman on securing this important debate. However, in fairness, he is not using a holistic approach. The Home Office concedes that one in five students in higher education and on pre-degree-level courses will become a de facto economic migrant, and therefore the complete fiscal impact, given the net rise in immigration, will clearly include an effect on the public purse and on the delivery of important public services.
I assume that the Home Office, as a diligent Department, took account of all the relevant issues when it published its impact assessment earlier this week and indicated that the proposals’ effect on the economy would be minus £2.4 billion.
My hon. Friend is being very generous in giving way. Is not the response to the hon. Member for Peterborough (Mr Jackson) that he is ignoring these graduates’ contribution through their wealth creation, skills and taxation payments? If the Government will not listen to us, should they not listen to Sir James Dyson, who not only sits on the Prime Minister’s business advisory group but headed an innovation taskforce for him? Sir James said:
“It is sheer madness to be effectively chucking out graduates who we desperately need. I am afraid what it will end up doing is driving firms like us abroad because we simply can’t get people to do our research and development.”
I very much agree with my right hon. Friend. I have talked to companies in Sheffield, and they say that the opportunity to have some of the best intellectual talent in the world working with them in product development and improving manufacturing processes is a startling benefit that our city gets from its two universities.
I will move on to the specifics of an area that the Government have seen as problematic: the post-study work route. I understand, unless there are more changes that the Minister wants to share, that under the new proposals international graduates of UK universities will, from April 2012, need a confirmed job offer for a graduate level role—that is fair enough—but which pays at least £20,000, and they will need to apply for a tier 2 visa for the job before their tier 4 visa expires. There is nothing wrong with limiting work to that of a graduate level, but the imposition of a £20,000 salary threshold is too restrictive for some sectors and regions. Sheffield university tells me that its average graduate starting salary falls below £20,000: in arts and humanities it is £16,600, in pure science it is £16,100 and in social sciences it is £18,000. According to the graduate employer survey of 2011, graduates in Yorkshire should generally expect a starting salary of between £15,000 and £18,000.
One of Sheffield university’s strengths is architecture. The students’ union international students’ officer, Mina Kasherova, in written evidence to the Business, Innovation and Skills Committee, highlighted the problems facing architects: they need to gain work experience after graduation to obtain their professional qualification, but they will not be able to get such a post with a salary of more than £20,000 through tier 2.
This is an open question. The hon. Gentleman made the point that the average salary requirement for a student coming to this country to go on to post-graduate study would be higher than that which a student from this country would normally accept. Does he believe that we ought to set the bar higher for international students, as a point of principle?
We should ensure that we make a realistic offer to students coming here. If we say that we recognise, as the Home Office has, and as the Government have in their reconsideration of their original proposals, that post-study work is part of the attraction of coming to this country, we have to be able to offer that work meaningfully, for the benefit both of the students and, as some of my hon. Friends have said, of companies here. Universities UK has pointed out that this problem extends to a range of professionals, including trainee solicitors, pre-registration pharmacists and optometrists.
The second problem in relation to post-study work is the reduction of the period that students have in which to find a job, from one year to that indicated by the date of expiry of their tier 4 visas. Universities UK points out that recruitment in certain roles and sectors is cyclical, and that some individuals might not be able to apply for certain roles because their visas will have expired before the recruitment process takes place. Will the Minister consider applying some flexibility and common sense to the starting salaries and the time period?
A third area of concern is the maximum length of study. Universities UK is worried about limiting the maximum total period of leave to five years of study at national qualifications framework levels 6 and 7. If that limit is rigidly applied, it will prevent international students from studying a four-year undergraduate degree followed by a two-year postgraduate programme. I recognise that there will be exceptions, but they should not be limited to courses that lead to the award of a professional qualification or registration, because there are many other long courses at both undergraduate and postgraduate level. The limit is causing concern to Scottish universities in particular.
The fourth area of concern is a very distinct one, and I mention it on behalf of the hon. Member for Stourbridge (Margot James), who would have been here herself but for the demands of a Public Bill Committee. I understand that she has corresponded with the Minister on this, and is awaiting a reply to her latest letter. In her constituency, as in mine, the Ruskin Mill Educational Trust runs a college that provides practical skills therapeutic education for young people aged 16 to 25 who have a range of learning difficulties. It offers just five places each year to overseas students and, due to the specialist nature of its work, the annual fees are between £70,000 and £100,000. The students there clearly work at or below NQF level 1, and therefore will always fail to meet the requirements for level 3. This is clearly not abuse of the system but something that needs a common-sense and flexible approach.
All the issues I have raised are ones of detail, and dealing with them will not undermine the Government’s objectives. Failing to deal with them, however, will undermine the recruitment efforts of our universities and colleges. In conclusion, I wish to make a general point about the Home Office’s impact assessment. It is extraordinary that we seem to be pressing ahead with proposals—the Minister has signed them off—that it has been demonstrated will cost the economy possibly £3.6 billion, including £170 million in tuition fees over the next four years. That will mean millions lost to our universities at a time when they can least afford it because of the changes that they undergoing, and billions lost to the economy at a time when we can least afford it. I hope, therefore, that the Minister will genuinely reflect on these issues and make changes that will not undermine his policy goals, but avert that damage.
No. The problem is that the post-study work route has been abused as much as it has been legitimately used. We are not closing down that route altogether; we are specifically saying, “If you can get a graduate-level job, you can stay.” That seems very reasonable—[Hon. Members: “It is about the salary”]. I thank Members for that. Let me talk about the £20,000 salary that the hon. Member for Sheffield Central suggested was somehow wrong. I have to say, in the gentle spirit of non-partisanship in which I am making this speech, that the £20,000 minimum salary threshold for tier 2 was set by the previous Government, following a recommendation by the Migration Advisory Committee in August 2009. At that time, the tier 2 skill threshold was jobs at national vocational qualification level 3, and this Government have now raised that threshold to jobs at NVQ level 4, at which level the case for a salary threshold of at least £20,000 becomes even more compelling.
What the previous Government surely had in mind when they set that threshold was not post-study work but the conventional application for tier 2.
It was set as a graduate-level salary, and it still is. We have kept that threshold. We have not inflation-linked it, and we have increased the skill level, so, if anything, there is a stronger case for it now.
I have a fascinating answer about accountancy qualifications for the right hon. Member for Sheffield, Brightside and Hillsborough, but given that there are only three minutes to go I hope that he can hold his interest on that topic and bear to have my reply in writing.
In response to a point made by the hon. Member for Edinburgh North and Leith, it is true that initially universities were automatically granted highly trusted sponsor status, but they were all required to apply for the status by the end of June 2010. All applications were considered against the published criteria. I was puzzled that someone said they were confused about the criteria, because they were published. Universities retained highly trusted sponsor status after June 2010 only if they had met all the criteria.
The hon. Member for Scunthorpe (Nic Dakin) made a point about independent schools. Independent schools have been afforded greater flexibility simply because of their extremely low levels of non-compliance. They have earned that privilege because they are practically 100% compliant. The requirement for a secure English language test applies to all users of tier 4 general. Independent schools largely use the tier 4 child route, for which there is no English language requirement. That route is also available to sixth-form colleges that recruit 16 and 17 year olds.
There was a question about the list of financial institutions, and I can say that that list will be available on the UKBA website shortly. The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) asked about quotas, and I am happy to assure her that there are no quotas for UKBA officials to grant or refuse applications.
Once all the rules have been implemented, I expect the reforms to reduce the number of student visas by about 70,000 a year, and I estimate that at the end of this Parliament there will be about 260,000 fewer student visas and about 100,000 fewer dependants’ visas. Members have raised many practical issues that I have not had time to address, but I will take them away and think about them hard, particularly the individual cases mentioned by the hon. Member for Manchester Central (Tony Lloyd) .
I am of course aware of the importance of international students for British educational institutions and for the UK economy, but I believe that the measures strike the necessary balance.