Report: International students already studying in the UK or offshore through TNE represent an increasingly important recruitment opportunity

Tighter compliance thresholds for UK universities recruiting international students – and the associated “Red, Amber, Green” scheme developed by the Home Office – are now in effect.

As of 1 June 2026, universities will be judged according to updated Basic Compliance Assessment (BCA) metrics that demand:

• A sponsored study visa refusal rate of less than 5%;
• An enrolment rate of at least 95%;
• A course completion rate of at least 85% (rising to 95% in 2027).

Only if an institution is rated green will it not be sanctioned or penalised in some way by the Home Office. The red rating band allows for sanctions as severe as the revocation of a university’s license to sponsor (aka recruit) international students. Importantly, the RAG rating is not an aggregate across the three BCA metrics; rather, the university’s rating is based on its lowest score on any one of those compliance requirements.

The introduction of this strict compliance regime underscores the importance of a new British Council report, “Pathways to Resilience: International students’ entry routes into postgraduate study.” The report says it is urgent for UK universities to consider expanding recruitment beyond the predominant form of attracting students from source countries. An underused enrolment pipeline, says the report, is international students who are already enrolled in some kind of UK education, whether onshore (e.g., in a bachelor’s programme) or offshore (e.g., via transnational education programming, such as a branch campus or through a foreign partnership).

The dangers of overreliance on direct overseas recruitment

About three-quarters (72%) of current foreign students in UK universities were recruited directly from their home countries, primarily through educational agents, student fairs, institutional outreach, and digital channels. Direct overseas recruitment is the norm – but it is also highly vulnerable to external events.

For example, foreign currency fluctuations, policy shifts, geo-political tensions, and affordability crises often dramatically affect international enrolments, and they are doing so right now. Non-EU commencements in the UK have been falling over the past couple of years, especially for postgraduate programmes, where most international students are enrolled. Immigration policies (including the dependant’s ban in 2024) sparked the trend. The updated BCA thresholds and associated Red-Amber-Green (RAG) system will ingrain it further.

The RAG effect on direct recruitment

The RAG system makes it much riskier to directly recruit students from several key non-EU markets. The study visa refusal rate threshold, in particular, is a game changer: it coincides with massive spikes in visa refusals for students from key growth markets, as shown in the chart below.

Pakistan, Bangladesh, Nigeria, and Bangladesh are important growth markets for many UK universities – but the surging rejection rates observed for each this year now increases the risk of a red RAG rating.

Among other penalties, a first red rating results in an institution having its sponsored study visa allocation (CAS) reduced by a minimum of 10% and a “final warning” that compels it to stay out of red for the next five annual BCA assessments. A subsequent red rating (after the final warning) is worse still: it constitutes a “serious breach of sponsorship duties” and allows the Home Office to remove a university’s right to sponsor international students.

Secondary routes are more resilient to external shocks

The rapid decline in the number of sponsored study visa applications and issuances over the past few months is largely due to UK universities and students from high-risk markets anticipating – and reacting to – the impact of the RAG system. Even before the new regime came into effect this week, some universities simply stopped recruiting in countries that were perceived as high risk in terms of visa refusals, and many students have withdrawn their applications to avoid any chance of having a visa refusal attached to their student profile.

Universities that can best withstand the effects of the new compliance standards are either elite institutions (less reliant on high-risk markets) or those that have contingency plans in place, such as the ability to recruit students already enrolled in these two ways:

• Offshore in transnational education (TNE);
• Onshore in K-12 schools, foundational, and degree programmes.

In both those cases, students are already invested in obtaining a UK qualification. They are already enrolled somewhere in the system – which means they don’t have to be recruited directly once more from their home countries.

As the report suggests, the opportunity here is to encourage existing onshore and offshore students to “convert” again, perhaps most crucially into a postgraduate programme. Those programmes attract 70% of onshore international students, and they are also the most affected by recent policies.

The potential of pathway recruitment

The following table shows that secondary entry routes for postgraduate studies at UK universities are growing, while direct recruitment is falling. For example, between 2022/23 and 2023/24:

• TNE (as an entry route to postgraduate studies in the UK) grew by +129%;
• Pre-sessional English (e.g., English-language courses for students to gain proficiency before entering degree programmes) was up +7.5%;
• Prior UK study (e.g., undergraduate to postgraduate or postgraduate to another advanced degree) was up +39%.

By contrast, direct recruitment was down -13.5%.

The crucial role of the undergraduate pipeline

When international bachelor’s enrolments fall, there are downstream effects. A significant number of international undergraduates progress to postgraduate studies (29,900 in 2023/24). The report notes:

“This makes UG2PG [i.e., undergraduate to postgraduate progression] a pivotal mechanism for institutional resilience: it captures the extent to which providers can convert prior UK study into master’s enrolments, rather than relying predominantly on new international recruitment at the point of entry.”

This point is especially important when looking at the markets where negative pressures on demand are the strongest. Though students from Pakistan, Bangladesh, Ghana, Sri Lanka, Nigeria, and Kenya are primarily enrolled in postgraduate programmes, anywhere from 20%–40% (depending on market) are in bachelor’s programmes. Collectively, this is a lot of students who can be recruited from within the UK.

Students with prior UK study experience and a history of compliance with immigration rules generally have a stronger chance of being approved for a second sponsored study visa (e.g., for postgraduate studies) than applicants from high-risk markets. They have demonstrated that they are genuine students whose primary reason for being in the UK is to study rather than to access work or immigration routes through the back door.

In turn, secondary pathways into undergraduate programmes deserve more attention, says the report:

“Universities’ foundation and [private pathway programmes] imply a sizeable “hidden” feeder pipeline into undergraduate degrees. This matters because these entrants often represent students with a higher level of commitment to a UK degree, and they can provide a stabilising buffer when direct recruitment is disrupted.”

Recommendations

The British Council advises:

“Institutions should treat students with prior engagement with UK education … as part of their resilience strategy [and] scale outreach work with UK schools, TNE, and international partnerships routes where feasible (including progression agreements and joint delivery).”

And continues: “All institutions, including highly ranked institutions, should therefore proactively develop and formalise progression pipelines … to sustain their future onshore conversion base.”

Another important recommendation concerns data. The report proves that the sector, and government, needs to capture and track pipeline progressions for a true understanding of risk. For example, rather than simply consider Pakistan a high-risk market, looking at the entry routes and progressions of Pakistani students could show which routes are more likely to contain genuine students who will succeed in their programmes and be compliant.

The report asserts: “To move from recruitment analytics to sustainability and quality, entry routes should be linked to continuation, completion, progression and employment outcomes.”

The report is broadly relevant across destinations

The report offers food for thought for universities across the Big Four because they share a common need right now: strategies to mitigate risk in the face of tightened immigration policies and heightened regulatory requirements.

For additional background, please see:

• “Narrowing bands of compliance: How the UK’s new RAG system will impact international student recruitment”
• “UK: Sponsored study visa issuances down, rejection rates up, and more”
• “UK universities bracing for a further decline in international enrolments”
• “UK: 7 in 10 universities report declining international postgraduate enrolments; visa rejections are part of the story”