UK sets out new immigration strategy, will reduce Graduate Route work term to 18 months

A white paper released by the UK government on 12 May 2025 provides a blueprint for the country's immigration settings going forward. The paper clearly signals the government's intent to curb immigration to the United Kingdom across all visa classes, including the Student Route, and it carries a number of significant implications for students and for British institutions and school as well.

In her foreword to the paper, Home Secretary Yvette Cooper said, "Throughout our history, Britain has been strengthened by people coming to start new businesses, study at our universities, contribute to our sporting or creative excellence, work in our [National Health System] or do some of the toughest jobs in our country. We have a proud tradition as an outward-looking nation, investing and trading abroad, and welcoming the creativity, ideas and diversity of those who come to contribute here.

But to be successful, effective and fair, our immigration system must be properly controlled and managed. This White Paper sets out how those controls and a fair managed system will be restored."

In his opening comment, Prime Minister Keir Starmer added that, "Migration is part of Britain’s national story and an essential element of a strong economy…In 2023, under the previous government, inward migration exploded to over a million people a year – four times the level compared with 2019. This was a political choice that was never put before the British people. In fact, quite the opposite – the previous government repeatedly promised inward migration would be brought under control. Instead, Britain became a one-nation experiment in open borders."

The paper provides some additional detail on that recent-year surge in migration numbers, explaining that, "Net migration hit a record high of +906,000 in June 2023 and quadrupled from its level of 224,000 in June 2019. In the latest data, for the year ending June 2024, net migration was +728,000. While levels of net migration have come down slightly in the latest year, it remains significantly above the level of net migration at any period in recent history, having averaged between 200,000 to 300,000 per year from 2010 to 2019."

The clear imperative for the current government is to bring those numbers down more aggressively. The paper leaves many questions unanswered in terms of the timing and details of implementation, but an accompanying technical annex is explicit in its estimated impact of the various measures. Some of the key provisions with respect to the Student Route, for example, are projected to reduce international student visa issuances by about 31,000 per year, or roughly 9% of 2023/24 levels. This represents about 32% of the total projected reduction in net migration to the UK outlined in the white paper.

Measures affecting the Student Route

The white paper sets out several points of concern with respect to the Student Route: "We have seen a series of problems involving misuse and exploitation of student visas, where visas are used as an entry point for living and working in the UK without any intention to complete the course, and increasing numbers of asylum claims from students at the end of their course, even though nothing substantive has changed in their home country while they have been in the UK…It is essential that opportunities to study in the UK are only given to individuals who are genuinely here to do so, and that the universities who sponsor those individuals to study here are treating that responsibility with the seriousness it deserves. It is also important that those graduates who are allowed to remain in the UK for a temporary period after their studies contribute to our economy at an appropriate level."

Responding in Wonkhe this week, News Editor Michael Salmon makes the overall significance of the white paper very clear: "The last few years of policy turmoil has demonstrated that much of the impact of migration policy on student recruitment is determined by how changes are interpreted by prospective students weighing up their choices between different destination countries."

The changes that students will now be asked to weigh up when considering study in the UK include the following.

A reduced Graduate Route

The Graduate route was re-established in July 2021. It allows foreign students to stay in the UK for up to two years (or up to three years for PhD students) after graduation.

"The purpose of the route," outlines the white paper, "is for international student graduates to work, or look for work, following the successful completion of an eligible course…We recognise the valuable contributions that graduates make to the UK but it is important that those who stay transition into graduate level jobs and are properly contributing to our economy." The paper adds that, "The number of graduates staying on as part of the Graduate route has increased over time to almost 250,000 in 2024…up from under 100,000 in 2022."

With more implementation details to follow, the paper sets out that the Graduate Route will be reduced (from the current two years) to a period of 18 months for students completing undergraduate and Master's programmes. (It appears that the Graduate Route term for doctoral students will remain unchanged.)

A new levy on higher education enrolments

"International students have a significant positive impact to the UK economy," outlines the white paper. "In 2021, international students at UK universities generated an estimated £20.65 billion in exports through living expenditure and tuition fees, but it is right that these benefits are shared. The Government will explore introducing a levy on higher education provider income from international students, to be reinvested into the higher education and skills system."

There are few details in this area but the accompanying technical annex specifies a levy of 6% on international student fees, part of the presumed impact of which is to (a) raise fees for foreign students and (b) depress, to some extent at least, demand for study in the UK.

Strengthened compliance requirements for institutions

The government currently relies on an annual Basic Compliance Assessment (BCA) for monitoring and evaluating higher education institutions in the UK with respect to their sponsored visa status. The BCA relies on three key metrics currently, with each sponsoring institution required meet these pass/fail thresholds:

• a visa refusal rate of less than 10%
• a course enrolment rate of at least 90% and
• a course completion rate of at least 85%.

A fail rating on any one of those can result in the institution having its sponsorship license revoked for up to two years. The white paper outlines that the government will move to strengthen these compliance requirements in a number of areas in order to "prevent the misuse of student visas". To that end, the government will:

• "Raise the minimum pass requirement of each BCA metric by five percentage points, so that – for example – a sponsor must maintain a course enrolment rate of at least 95% and a course completion rate of 90% in order to pass the compliance threshold"

• "Implement a new Red-Amber-Green banding system to rate the BCA performance of each sponsor, so that it is clear to them, the authorities and the public which institutions are achieving a high rate of compliance, and which are at risk of failing"

• "Introduce new interventions for sponsors who are close to failing their metrics, including placing them on a bespoke action plan designed to improve their compliance, and imposing limits on the number of new international students they can recruit while they are subject to those plans, and"

• "Require all sponsors wishing to use recruitment agents for overseas students to sign up to the Agent Quality Framework, designed to maintain the highest standards of agent management, and ensure that institutions cannot simply outsource their responsibility to ensure that the individuals whose visas they are sponsoring are genuinely coming to the UK to study."

Increased English proficiency requirements for dependants and settlement

The white paper draws a direct line between English proficiency and successful integration into British society for visiting students and their dependants. "People who could not speak English are less likely to be employed. In the 2021 Census, just under 70% of migrants who were proficient in English were either employed or self-employed, compared to 50% of those who could not speak English well or at all. In addition to having higher employment rates, migrants with good English language skills tend to work in jobs requiring a higher level of skills. For example, 9% of migrants who spoke English as a main language worked in lower skilled roles in 2021, compared to 40% of migrants who could not speak English well or at all."

With that in mind, the government is going to move to introduce a new English language requirement for all adult dependants of foreign students. Those accompanying family members will now have to demonstrate an English ability at level A1 (Basic User) in the Common European Framework of Reference for Languages (CEFR). The government has noted as well that it "will work towards increasing this requirement over time."

Settlement requirements across all immigration routes will also be increased from CEFR B1 to B2 (Independent User).

A longer time horizon for settlement

The white paper outlines a number of new provisions with respect to the process for permanent settlement, in particular through revision and expansion of the Points-Based System and an increase in the standard qualifying period to ten years (this amounts to a doubling from the current five-year qualifying period).

A measured response so far

The points in the white paper that will draw the greatest attention are the proposed levy on international fees and the reduction in the Graduate Route period for undergraduate and graduate students. And indeed we see that focus reflected in the early commentary from peak bodies and senior practitioners online.

"Reducing the length of post-study work on the Graduate Route will make the UK less competitive internationally, although we welcome that this reduction does not apply to PhD students," said Russell Group Chief Executive Dr Tim Bradshaw. "It’s now crucial that we continue to make international students feel welcome and valued, and provide a stable policy environment to give the sector confidence in recruiting globally."

He added that, “We’re awaiting further details of a proposed levy on international student income, but this will be a serious concern for universities already making difficult decisions to safeguard their financial future."

Universities UK Chief Executive Vivienne Stern said, "Our universities recognise public concerns about immigration. That is why we are committed to maintaining robust recruitment practices. We work closely with government to ensure that international student recruitment is sustainable, and growth is well-managed. Many of the changes announced today build on proposals published by UUK in September and will help preserve an internationally competitive offer to international students. Confirmation that the Graduate route will remain in place with some minor changes is particularly welcome.

However, the financial challenges facing universities are well known. Following years of frozen fees, inadequate research funding and a rapid downturn in international students, the current operating environment is very challenging. We would urge government to think carefully about the impact that a levy on international student fees will have on universities and the attractiveness of the UK as a study destination."

Speaking to Times Higher Education, Oxford International Education Group Chief Executive Lil Bremermann-Richard said of the levy, "I think this is dipping into the pockets of universities yet more. They are expected to work harder at compliance, harder at student experience, pay higher National Insurance contributions, work with less investment for domestic students, innovate, and pay a new levy.”

For additional background, please see:

• "Global survey underscores demand shift from 'Big Four' to 'Big Ten'"
• "Australia and Canada: Rising to the challenge of new immigration policies"
• "Summing up international student work rights in 14 top study destinations"
• "UK commission calls for a more strategic and sustainable approach to international student recruitment"
• "UK: Reduced demand from India, Nigeria, and Bangladesh drive a 14% decline in sponsored study visas in 2024"
• "UK: Study visa applications and issuances on the rise in 2025"