Post-study Work Schemes

Robert Goodwill Excerpts

Thursday 8th December 2016 Westminster Hall

[Deidre Brock (Edinburgh North and Leith) (SNP)]

It is a great pleasure to serve under your chairmanship, Mr Rosindell. Scotland has a long history of excellence in higher education. As a beautiful country with outstanding international universities, it is a very attractive place for students from around the globe—despite the UK Government’s best policy efforts to put them off.

International students are being hammered again and again, and at some point they might decide it is not worth the hassle and the hostility from UK Visas and Immigration and take their valued custom elsewhere. The UK Government say they are delivering an immigration system that is working in the national interest. I have to disagree. With an ageing population and with skills shortages across many sectors, it seems to me that policies that block successful routes for the brightest talent to stay and work are acting very much against our national interest. The Secretary of State for Scotland admitted as much in his evidence to the Scottish Affairs Committee—if only he would make his case more forcefully to his Cabinet colleagues in Westminster, instead of being the Cabinet mouthpiece in Scotland.

On immigration, as with so many issues, one size does not fit all. If the Tories do not wake up to that fact, they will wake up to a UK without Scotland sooner rather than later. It is not beyond the wit of the Government to modify policies to meet differing needs in different parts of the UK—they simply choose not to. I, along with my colleagues, as my hon. Friend the Member for Perth and North Perthshire (Pete Wishart) mentioned, have to question why the post-study work visa was dropped. We know that it worked and that it successfully provided a workplace opportunity for new graduates in Scotland. As he said, we have seen 80% fewer people move to work visas since that was dropped.

The official excuse of widespread fraud seems to be a bit of a fraud in itself. The evidence from the Scottish university sector shows that it has an impeccable record as sponsors of genuine, high-calibre students. A leaked Government paper reported in The Times suggested that 99% of international students abide by the terms of their visa and return home when it runs out. Dropping the post-study work visa is perhaps to do with the Government’s failing target to cut net migration, which my hon. Friend also referred to. That is something they know that cannot even properly measure, let alone control.

[The Minister for Immigration (Mr Robert Goodwill)]

The hon. Lady spoke of “widespread fraud”. That is not something that we are worried about for universities, but it applies to more than 900 colleges, some of which had been taking people on courses that did not even exist. That is why we had to take action in that regard. She should not confuse our universities with some of those bogus language schools and other colleges that have lost their right to take overseas students.

[Deidre Brock]

Unfortunately, there are probably none of those colleges in Scotland. I am afraid the effect on the high-quality universities he refers to is significant, and he is not allowing for that in the immigration regulations that he is laying down.

Students make up the biggest numbers in the points-based system by far, which makes them an easy tap to turn on and off, and vulnerable to the whims of Whitehall number crunchers eager to massage immigration figures without the risk of pesky appeals. I accept that, rightly or wrongly, people across the UK have concerns about immigration—perhaps it is those who are struggling due to the lack of Government investment in housing, health, schooling or jobs in their area—but the fact is that they are not worried about students. A recent survey showed that 76% of the UK public do not regard international students as immigrants at all. Universities in Scotland and the global talent they attract are massively important to our economy. There are 31,000 non-EU international students across Scotland from 180 countries. They contribute many millions of pounds per annum to Scotland’s economy. That is a tap we need to keep flowing—not turn off.

It is not only about the numbers. Having people from so many different cultures living in Scotland greatly enriches our society in ways that we really cannot measure. Making the place less attractive to students, and making them part of the overall hostile environment strategy, is damaging to our universities. We cannot be happy to take their fees but hostile to letting them stay and work for a while. Students will vote with their feet and universities will suffer. As my hon. Friend the Member for Perth and North Perthshire said, we have heard of big increases in the recruitment of international students—10% or 11% growth in 2015—in competitor nations, such as the US and Australia. That was the US’s largest increase in 35 years, while the intake of non-EU international students across Scotland and the UK remains flat.

Scotland is fed up of being told to put up and shut up. We implore the UK Government to look at the evidence, listen to the university sector and help take Scotland forward, not haud us back.

[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.

--- Later in debate ---

[Ian Murray (Edinburgh South) (Lab)]

I thank you for calling me to speak, Mr Rosindell, particularly as I had not indicated in advance that I wanted to do so. However, I believe we have time available for the debate until 3 o’clock, so I appreciate being called. It is a great pleasure to serve under your chairmanship.

I commend the Chair of the Scottish Affairs Committee, the hon. Member for Perth and North Perthshire (Pete Wishart)—I hope I do not burst into flames for saying that—on the way in which he conducted the post-study work visa inquiry. I hope we do not push that to a Division. I joined the Committee after the inquiry had started, but I was on it when it considered the report, which is full and fair. The Minister and the Government should reflect seriously on it.

Since the EU referendum result, we have seen that one size no longer fits all, as we heard from the hon. Member for Edinburgh North and Leith (Deidre Brock). Post-study work visas are one area where one size certainly does not fit all, and did not in the past. We heard about the Fresh Talent initiative that the former First Minister in Scotland put in place, which was a slightly different scheme from any in the rest of the UK until it was rolled out across the whole of the UK. Of course there were problems and well-documented evidence of bogus universities bringing people to the UK to work, but such issues should have been dealt with when considering how the scheme operated, rather than by scrapping the whole scheme and throwing the baby out with the bathwater.

The Select Committee report sets out a number of fair and reasonable suggestions that the Government could look at to keep the UK framework and foundation of the immigration system. I understand all the arguments about not fragmenting the system, and ensuring that it is fair to everyone and that Britain remains open and free across its borders, but things can be done to make the system much more responsive to the people who are here.

It is not just the Select Committee saying that. It is indeed a cross-party report that was unanimously agreed, but many of the people who gave evidence said the same thing. Sir Tim O’Shea, principal and vice-chancellor of the University of Edinburgh, is hugely experienced in the higher education sector and was very animated, when he came to speak to the Committee, about the impact that the current situation is having on a world-class university such as Edinburgh. The reason why he was so animated was that a university in a country such as Scotland does not become one of the top 20 universities in the world unless it can attract the best talent to study at the university and unless that talent can be kept there beyond university to feed some of the information and experience that it has had back into the university sector.

This is about much more than just the nuts and bolts of allowing people to work here beyond their university career. It is about cultural enrichment. It is about people putting something back when they have taken something out. It is about the contribution that they make when they are here—£15,000 in fees alone and the annual moneys that they put into our local economies. As a former owner of a bar at the heart of Edinburgh University’s student life, I know that we could not have survived without students participating in the odd libation of an evening, or every evening in some cases. That is why it is so important that we get this right.

I was pleased when the then Minister for Immigration and the Secretary of State for Scotland came to the Select Committee and explained a little about the trials being done at Imperial College and the Universities of Bath, Oxford and Cambridge to look at how the system can be reformed. I am highly critical of the criteria used to pick those universities. I am not critical of the universities being picked—they have obviously ended up at the top of the list as a result of the criteria. I just say to the Minister, with all genuine respect, that he should look at putting a Scottish university into that list, for a number of reasons. First, it would enhance the trial, on the basis of the differentials that the Chair of the Committee has already spoken about and the embracing of the post-study work visa by Scottish universities. Also—I say this with all sincerity—it would take away the undermining of the trial by Scottish MPs complaining constantly that there is no Scottish university in the list. Let us pop one in there and enhance the trial, and if it works, a Scottish university will already be part of the trial and part of the system that may transpire from it.

We also need to examine the figure of £20,800. I remember as a student in my final year at Edinburgh University going to the careers service and not having one iota of a clue what I wanted to do when I left university, so I ended up leafing through the brochures sent in by graduate employers, looking at how much they paid on the back and applying for all the ones that paid the most. I cannot remember—it was 20 years ago—seeing many salaries that would have been the equivalent of £20,800 now. We can understand that if someone who is earning £21,000, £22,000, £23,000 or £24,000, it is quite good for them to be on the scheme, and of course they can get the visa attached to that, but there must be some flexibility about the £20,800.

[Mr Goodwill]

Does the hon. Gentleman not agree that if we reduced the salary threshold for overseas students, that could bring downward pressure to bear on salaries paid to British students—Scottish students—who are taking the self-same jobs?

[Ian Murray]

They are not getting those salaries, though, are they? If they were, we would be complaining about that preventing people from entering the workplace. There is always a reason for having figures. All we are asking—this is all the report said—is for the Government to look at having a little bit of flexibility on whether £20,800 is the right figure for a salary. I understand what the Minister says about differential salaries, and I agree that the average salary in Scotland would not always be lower than £20,800, given the matrix of average salaries across the UK. Perhaps removing London and the south-east from the system and then recalculating the average would be a slightly fairer system to use.

I ask the Minister to look not only at the £20,800, but at popping a Scottish university with low numbers of visa rejections into the system. I have asked the Home Office for the data, but they are covered by data protection, so I cannot see which Scottish university would be fifth on the list, or could be used, but I am sure that the Minister can go away and look at that.

A much bigger thing—this might even help the Conservative Government with the net migration figures—would be to take international students who are here for bona fide study and work out of the immigration figures. That would be a perfectly sensible thing to do. Everyone in the country, whether completely anti or completely pro-immigration, would no doubt see it as reasonable that someone coming here to study as an international student should not be part of the immigration figures. They are here to study, to learn, and, if they meet the criteria for an additional visa, to work. That sensible approach would automatically reduce the country’s immigration figures, so it would be a good news story. It would also mean that our universities were not subject to constant right-wing attacks about the immigration figures because they are bringing in students, even though those students bring an awful lot of money into the country. That money also oils the wheels of finance departments in universities so that they can deliver the education system that we all wish to have.

There are a number of ideas in the report, and a number of additional ideas for the Minister. I look forward to hearing an additional response from him, but I do plead with him to have a look at the report. It is not an attack on the Government or the immigration system. It contains sensible, reasonable and measured recommendations to try to make the system better for our constituents, but also for our wonderful, world-class higher education system in Scotland.

--- Later in debate ---

[The Minister for Immigration (Mr Robert Goodwill)]

It is a great pleasure to serve under your chairmanship, Mr Rosindell. If I may, I will leave a couple of minutes at the end for the hon. Member for Perth and North Perthshire (Pete Wishart), who moved the motion, to respond. I congratulate him on securing the debate and I congratulate all hon. Members who have participated on their valuable contributions to a spirited debate. Indeed, such has been the turnout for the Scottish National party, it has almost been like a scene from “Braveheart”. I welcome the shadow Secretary of State for Scotland. During my short time as Immigration Minister, I have faced seven Members of the Labour party across the Dispatch Box, and I have had seven slightly different takes on what Labour’s immigration policy might be. I hope we can get some clarity at some point.

It would be careless of me not to begin with the fact that the Scottish people knew, when they voted in the Scottish independence referendum, that issues such as immigration and defence were not devolved matters. Therefore, the majority agreed that that should continue to be the situation. Incidentally, despite what the shadow Secretary of State said about my party’s attitude to Scotland, I want to put on the record that Scotland, like Yorkshire, is an important part of our country and that use of the word “colony” is really not appropriate. Perhaps the people in Scotland are slightly more generous than people from Yorkshire, but both are vital parts of our country. More Scots chose to vote Conservative than Labour in the last Scottish election. Indeed, many would say that Labour has become irrelevant in Scotland and that only the Conservatives are seen as offering a real choice for our people north of the border.

I am pleased to say that, on some key issues, there are no differences between any of us, whichever side of the border we are on. International students make an important contribution to UK educational institutions not just because of the income they bring, but because of the wider perspective they contribute and the lasting links they forge with this country. Let me be clear: there is no limit on the number of genuine international students who can come to study in the United Kingdom, and we have no intention of imposing any limit or cap. I hope that all hon. Members will acknowledge and welcome that fact. Let me also be clear about what that means in practice. The Government have taken seriously our duty to clear up the mess we inherited from the previous Government, including stopping more than 900 bogus institutions bringing in international students, and the number of genuine international higher education students has risen. Indeed, since 2010, the number of international students at Scottish universities has increased by 14%. I wish that those who seem to trade in doom and gloom would celebrate that fact and help the excellent universities in Scotland to flourish.

The hon. Member for Edinburgh North and Leith (Deidre Brock) raised a point about numbers falling. I point out that non-EU enrolments at Scotland’s Russell Group universities have increased. Between 2011-12 and 2014-15, the University of Edinburgh’s numbers were up by 9%, and the University of Glasgow’s were up by 32%. That is a great achievement by some of our great institutions.

[Stuart C. McDonald]

The point here is not a comparison between where we are now and where we were a few years back. It is about where we are now and where we could have been if we still had the post-study work visa. Universities Scotland has highlighted the fact that it has lost out on hundreds of millions of pounds of income, so we would have had more international students. That is an appropriate comparison and that is what the Minister has to address.

[Mr Goodwill]

The hon. Gentleman continually makes such points, but we must always bear in mind that many of those numbers are people who did not come here to study at all in some cases. They enrolled in bogus colleges intending not to study, but merely to take low-skilled jobs as a way of getting into the country and, in some cases, achieving residency in due course.

Let me turn to the issue of post-study work in Scotland, dealing first with the Fresh Talent—Working in Scotland scheme, which closed in 2008 because of its manifest limitations. An evidence review of the Fresh Talent scheme published by Scottish Government Social Research in 2008 refers to analysis of in-country applications conducted by the Border and Immigration Agency between June and August 2007, showing that a significant proportion of respondents were not in the types of job they would have liked to be in, with about four in 10 stating that their employment was not linked to their career choice, and more than half saying that it was not even appropriate to their level of education.

The Government closed the tier 1 post-study work route in April 2012. The route granted free access to the UK labour market for two years to international students who graduated in the UK. Too many individuals in the route were unemployed or in low-skilled work, and too many were using the student route as a means to work in the United Kingdom without any intention to study. We also saw a large number of fraudulent applications, which undermined our work routes and damaged the reputation of our education system. However, the closure of the two schemes does not mean that the United Kingdom fails to provide an attractive offer for international graduates of our universities. We have a generous offer for international students graduating from UK universities, which contains important safeguards to protect against abuse, the undermining of our work migration routes, and students being exploited by being used in low-skilled work or remaining in the United Kingdom unemployed.

With our current post-study provisions, the number of international students switching from tier 4 into tier 2 in the UK has been increasing. In 2015, the number was more than 6,000—up from around 5,500 grants in 2014, and around 4,000 grants in 2013. The hon. Member for Perth and North Perthshire made the allegation that we will “boot them out”. That is not the case. He talked about people having to find a job in four months, which is also not the case. They can start looking for a job before they finish their course, and many participate in the famous milk round, in which employers go around universities before exams and graduation have been completed. The important point is that there is no limit, and never has been, on the number of international graduates of UK universities who can move into skilled jobs in the UK workforce. There is no limit on the number of tier 4 students who can move into tier 2 jobs. Students moving into skilled jobs do not count against the annual tier 2 general limit.

Another point was on students being able to stay for up to two or four months before switching. Four visa categories are available to non-European economic area graduates of UK universities who wish to remain in the UK to work. First, those with an offer of a graduate-level job that pays an appropriate salary may take sponsored employment through tier 2. Secondly, those who have been identified by their higher education institution or by UK Trade & Investment can stay on for up to two years to develop their businesses in the UK under the tier 1 graduate entrepreneur category. Thirdly, graduates wishing to undertake a period of professional training or a corporate internship related to their qualifications can do so under tier 5. Lastly, PhD students can stay in the UK for an extra year under the tier 4 doctorate extension scheme to look for work or to start their own business.

We need to be clear that this debate is not about skilled work or ensuring that graduate-level skills are available to Scotland. That is already provided for. The Scottish National party is arguing for the right for international graduates to stay in this country to work in low-skilled and unskilled jobs. I fail to see how that benefits the economy of any part of the United Kingdom.

Although I recognise and welcome the work in Scotland to reduce unemployment rates—I note that there are still 129,000 unemployed people in Scotland—as in other parts of our country, the unemployment rate has fallen in recent years. Many of those people may already have the skills, or could acquire the skills, to take up jobs that do not require graduate training.

The other argument advanced by the SNP is that not having post-study work schemes makes the UK education sector less competitive than all our key international competitors. Perhaps we should look at the facts. An international student graduating from a UK university can stay in this country for at least two months after graduating, during which they can do whatever they like, including both working and looking for tier 2 employment that would allow them to stay on. If they have undertaken a course lasting more than a year, which covers the majority of international students in the UK, they can remain for four months.

The only country with a greater number of international students than the UK is the United States of America. In the United States international graduates, other than those undertaking work directly relevant to their degree, must leave the country within 60 days of completing their programme. In passing, I note that Canadian study permits become invalid 90 days after the conclusion of a study programme, which again is less generous than the position that applies to most international students in the UK. I hope we will not hear any more rhetoric about the UK’s uncompetitiveness on international students.

[Stuart C. McDonald]

The Minister is talking about the student visa itself. The US, Canada, Australia and New Zealand all have post-study work offerings that allow people to switch without, say, salary thresholds for 12 months or, in one case, 24 months. The Minister is not making a fair comparison.

[Mr Goodwill]

I have mentioned the four routes that graduates can take, but I make it clear that coming to the UK to study and obtain a degree is not a way into low-skilled work or unemployment. The vast majority of students come to the UK to study and then go back to contribute to their country’s economy. Indeed, on the statistics, those students do not contribute to net migration. If a person comes here to study and leaves at the end of their course, they do not contribute to net migration.

The hon. Members for Dundee West (Chris Law) and for Rutherglen and Hamilton West (Margaret Ferrier) spoke of the tier 4 visa pilot. In recent months, some Scottish National party Members seem to have fixated on the claim that Scottish universities have somehow been deliberately and consciously excluded from the tier 4 visa pilot. The four universities chosen were selected objectively, with no prejudice—indeed, if there were prejudice, I suspect we would have had one in Yorkshire—and, as a result, the pilot includes the top four institutions based on their consistently low levels of visa refusals. There was no agenda to limit those involved to universities in any region of the UK.

The hon. Member for Kirkcaldy and Cowdenbeath (Roger Mullin) is keen on putting words in my mouth, and I am not saying that all institutions not currently involved in the pilot have a poor record of immigration compliance. There are plenty of excellent institutions throughout the UK, including in Scotland. However, the four institutions participating in the pilot have the best record, which is why they have been chosen. We have deliberately kept it small scale, and I assure hon. Members that it will be properly evaluated. Should the pilot prove a success, it will be rolled out more widely—including, I hope, to universities in Scotland.

Finally, the Government continue to engage widely with the further and higher education sectors. Only yesterday, as has been mentioned, I met Dr Alasdair Allan, the Scottish Government’s Minister for International Development and Europe, to discuss these points.

I have time to touch on one or two other points. It was claimed that the number of Indian students coming to the UK has fallen by half, which should be viewed in the context of the clampdown on abuse. We issue more tier 4 visas to students from India than to students from any other country except China and the United States. The proportion of Indian students in the UK who are studying at a university has increased from some 50% in 2010 to some 90% in 2015. The trend of smaller volumes of students with greater concentrations in higher education is likely to reflect the recent policy changes to clamp down on immigration abuse by non-genuine students and bogus colleges. In 2015, some 90% of Indian students who applied for a tier 4 visa were issued one, which is up from 86% in 2014 and 83% in 2013. The Indian student grant rate is higher than in our competitor countries, and in quarter 3 of 2016 there was a 6% increase in the number of tier 4 visas issued to Indian students compared with 2015.

As anticipated, this has been a lively debate. I thank all hon. Members for their contributions. I reiterate that genuine students are welcome, and will continue to be welcome, in the United Kingdom. The UK has an enviable reputation as the home of world-class educational institutions, and the Government will continue to help them to ensure that they can continue bringing in the best and brightest students from across the globe to all parts of the UK, particularly Scotland.