The post-study work visa may not be attracting “global talent” and many international students who enter the UK through it end up in low-wage jobs, according to a report from a key government body.
An impending ban on dependants may also bring “potentially harmful consequences” for some of the best overseas students, the Migration Advisory Committee (MAC) warned.
Its annual report said the two year graduate route introduced in 2018 has been a “resounding success” in increasing the number of international students, but not in terms of attracting talented students who will work in high-skilled graduate jobs.
The committee, an independent non-departmental public body that advises the government on migration issues, has recently been commissioned by the Westminster government to conduct a review of the visa to “prevent abuse and to protect the integrity and quality of the sector”.
Its report said it had previously recommended against the introduction of a separate graduate visa because of concerns that it would lead to an increase in low-wage migration and universities marketing themselves on post-study employment potential rather than educational quality.
The introduction of the visa by former prime minister Boris Johnson had made the UK “significantly more attractive” since 2018, particularly for less selective and lower fee universities, it said.
“We are sceptical that it adds much to the skilled worker route which was already available to switch into after graduation, and we expect that at least a significant fraction of the graduate route will comprise low-wage workers. For these migrants, it is in many ways a bespoke youth mobility scheme.”
The body, which is chaired by Brian Bell, professor of economics at King's Business School, said its analysis of longitudinal education outcomes data suggested that the graduate route may not be “attracting the global talent anticipated”, with many students likely entering low-wage roles.
The report said international students offer an economic benefit to the UK, but warned that not all aspects of student migration have the same benefits – highlighting that student dependants do not contribute to university finances.
“Dependants benefit from public service provision covering areas such as healthcare, policing and schooling.
“These additional costs will be borne by local authority and school budgets, not by the universities where international students study.”
Since 2018 the committee said there has been a significant increase in student dependant visas, largely from India and Nigeria, which is why only those on postgraduate research courses will be able to bring dependants from January.
The Home Office has said it will work with the sector to “ensure the brightest and best students can continue to bring dependants” and the MAC encouraged it to pursue this work as a matter of urgency.
“We have heard from a number of institutions in the sector of the potentially harmful consequences of the policy for exactly this group of students,” it added.
Professor Bell said the substantial increase in international student numbers in recent years was the result of an explicit government target, the introduction of the graduate route and the decline in real value of domestic student fees.
“We welcome the announcement of a MAC review on the graduate route visa, to ensure it is working in the best interests of the UK,” he said.
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