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The graduate visa route should remain as it is key to funding British universities and is “not undermining the quality and integrity” of higher education, a new report has said.

The Migration Advisory Committee (MAC) looked at whether the visa was being abused and if it was not being “driven more by a desire for immigration” after Home Secretary James Cleverly requested an emergency review in March.

A graduate visa permits overseas students to stay in the UK for up to three years after completing a university course in the UK. Partners and children can also apply as dependents.

Former immigration minister Robert Jenrick published a report last week calling for the graduate visa to be abolished, claiming it “allowed people to come and work in the gig economy and on very low wages”.

University and industry leaders had voiced fears that the route, introduced in 2021, could be axed or curtailed if the report had been negative, with universities reporting a steep drop in international students applying over fears of restrictions being introduced.

But the committee, made up of five university professors and a Home Office representative, said they found “no evidence of widespread abuse” of the graduate route.

“The risks of abuse are relatively low due to the limited number of conditions the route imposes,” the report said.

Home Secretary James Cleverly arrives in Downing Street.
Pic: PA
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Home Secretary James Cleverly requested the emergency review. Pic: PA

It also found the visa route is helping universities to expand the range of courses offered while making up for financial losses from domestic students and research, and is “supporting the government’s international educational strategy”.

The report said 114,000 graduate route visas were granted for applicants in 2023, with a further 30,000 for dependents.

It said students from India, Nigeria, China and Pakistan account for 70% of all graduate visas, with India accounting for more than 40%.

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MAC chair and leading labour economist Professor Brian Bell, the head of economics at King’s College London, said: “Our review recommends the graduate route should remain as it is, and is not undermining the quality and integrity of the UK’s higher education system.

“The graduate route is a key part of the offer that we make to international students to come and study in the UK.

“The fees that these students pay help universities to cover the losses they make in teaching British students and doing research.

“Without those students, many universities would need to shrink and less research would be done.

“This highlights the complex interaction between immigration policy and higher education policy.”

A government spokesman said: “We are committed to attracting the best and brightest to study at our world-class universities, whilst preventing abuse of our immigration system, which is why the home secretary commissioned an independent review of the graduate route.

“We have already taken decisive action to address unsustainable levels of migration and our plans are working, with a 24% drop in visa applications across key routes in the first three months of this year, compared with the same period last year.

“We are considering the review’s findings very closely and we will respond fully in due course.”

Bristol.England.September 07, 2018.The Wills Memorial Tower of Bristol University Seen from Park Row
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Graduate visa holders help fund universities, the report found. (File pic of Bristol University)

Reacting to the report, Mr Jenrick said the graduate route “should be scrapped” and the UK needs to “urgently unwind the sector’s growing dependency on foreign students” as he called the route a “backdoor for foreign students to do low-wage work…that isn’t attracting top talent”.

He said the review’s conclusions were “constrained by the narrow terms of reference deliberately set by the government” to back up their International Education Strategy that includes the “arbitrary target” of attracting 600,000 foreign students a year.

“If you order white paint, you get a whitewash,” he said.

The report found most people on the graduate route had completed postgraduate courses, with the highest growth in the visa from non-Russell Group universities’ postgraduate courses – accounting for 66% of all graduate visas.

Since 2021, the proportion of main applicants aged over 25 has increased by 15 percentage points to 54% in 2023.

It also found graduate visa holders are initially overrepresented in lower-paid work but their job prospects and wages improve over time.

Among the first cohort of graduate visa holders, about half moved to skilled worker visas, primarily into skilled roles.

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African economies show high potential for digital asset adoption

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African economies show high potential for digital asset adoption

South Africa emerges as a leading digital asset hub, driving growth in crypto with proactive regulations and expanding platforms like VALR.

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Angela Rayner promises flagship workers’ law next month as she pledges ‘things can get better’

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Angela Rayner promises flagship workers' law next month as she pledges 'things can get better'

Angela Rayner has promised to bring Labour’s flagship workers’ rights bill to parliament next month as she told her party’s conference: “Things can get better if we make the right choices.”

The government has faced criticism in recent weeks over its pessimistic messaging around the economy, with Prime Minister Sir Keir Starmer warning October’s Budget would be “painful” in order to deal with the £22bn “black hole” he claims was left by the Conservatives.

But while his deputy said the party “can’t wish our problems away”, she said “hope won” when Labour achieved its landslide at the last election, adding: “Change has begun.”

Politics live: Rayner speaks at Labour conference

Speaking on the conference floor on the first full day of Labour’s annual gathering, Ms Rayner said: “Let me be blunt. We can’t wish our problems away. We have to face them. That’s the difference between opposition and government.

“But… things can get better if we make the right choices. Sustained economic growth is the only way to improve the lives of working people, and we’re fixing the foundations to put Britain back on the path to growth. No more talking, but doing.”

The deputy prime minister reiterated her party’s plans to improve renters’ rights, including ending no-fault evictions “for good”, as well as promising a “devolution revolution” in the north of England, and the “biggest boost to social and affordable housing in a generation”.

More on Angela Rayner

But some of the biggest cheers from delegates came over her long-trailed plan to increase workers’ rights across the country, with her promising to bring the Employment Rights Bill to the Commons in October.

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Concerns have been raised over the legislation by some in the business community, with an Institute of Directors’ survey earlier this month citing the bill as a reason for pessimism among firms who fear the impact on their operations.

But the government has sought to play down any divide, and held several roundtables with company leaders in recent weeks to allay their fears.

Championing the bill, Ms Rayner said: “They said we couldn’t do it. Some tried to stop it in its tracks. But after years of opposition, we are on the verge of historic legislation to make work more secure, make it more family friendly, go further and faster to close the gender pay gap, ensure rights are enforced and trade unions are strengthened.

“That means repealing the Tories’ anti-worker laws and new rights for union reps too. A genuine living wage and sick pay for the lowest earners, banning exploitative zero-hour contracts and unpaid internships, ending fire and rehire. And we will bring in basic rights from day one on the job.

“This is our plan to make work pay, and it’s coming to a workplace near you.”

Concluding her speech, the deputy prime minister said: “On 4 July, the people entrusted us with the task of change and hope won. Now is our moment, not just to say, but to do.

“Labour governments of the past took on this same challenge at a time when Britain desperately needed change. They delivered a better Britain when the odds were stacked against them.

“And that is exactly what this Labour government must deliver once again. So conference, let’s get on with it.”

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Angela Rayner to announce renters’ protections at opening of Labour Party conference

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Angela Rayner to announce renters' protections at opening of Labour Party conference

Angela Rayner will set out measures to protect renters from fire safety defects, damp and mould in her speech at the Labour Party conference.

The deputy prime minister, who is also the housing secretary, will commit to “building homes fit for the future” when she opens the party’s first annual gathering since winning the general election.

The package will include bringing forward a Remediation Acceleration Plan this autumn to speed up the removal of unsafe cladding on high-rise buildings.

Deadly cladding remains on more than half of all residential blocks of flats identified as at risk since the Grenfell fire in 2017.

The issue has come back into the spotlight following the conclusion of the inquiry into the tragedy, which found that “systematic dishonesty” contributed to the blaze that killed 72 people.

The announcement of the acceleration plan was thin on detail, but the government said it would go “further and faster to fix unsafe cladding and make existing homes safe”.

Other measures Ms Rayner will announce on Sunday include consulting on a new “decent homes standard” for the social and private rented sectors, and a new law to make landlords respond to complaints about disrepair within legally binding timescales.

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These have already been announced as part of Labour’s Renters’ Rights Bill, which builds on long-awaited legislation that was promised by the Tories but ultimately shelved ahead of the general election.

The law regarding repairs will be named after two-year-old Awaab Ishak, who died as a direct result of exposure to mould in the social home his family rented in Rochdale, Greater Manchester.

Awaab Ishak
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Awaab Ishak

The Conservatives first proposed Awaab’s Law to cover the social rented sector, but Labour will extend it to cover the private sector in a move they say will help tenants in 746,000 homes with reported serious hazards secure faster repairs.

Commenting ahead of her speech, Ms Rayner, who has also pledged to build 1.5 million homes over the next five years, said: “Just because Britain isn’t working at the moment, it doesn’t mean it can’t be fixed.

“We will deliver for working people and, in doing so, show that politics can change lives.

“This Labour government is taking a wave of bold action to not only build the housing our country needs and boost social and affordable housing, but to ensure all homes are decent, safe, and warm.”

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‘All MPs take gifts and donations’

The speech comes as a donations row threatens to overshadow the optimistic mood of the party’s first conference while in government for 15 years.

The prime minister has come under scrutiny over the past week for the more than £100,000 worth of gifts he has accepted, including tickets to football matches, concerts and luxury clothes.

Following days of press coverage on the issue, it emerged on Friday that Sir Keir and his most senior ministers – Ms Rayner and Chancellor Rachel Reeves – will no longer accept donations to pay for clothes.

On Saturday, Culture Secretary Lisa Nandy told Sky News that there had not been an undue influence in gifts accepted by her colleagues but “we don’t want the news and the commentary to be dominated by conversations about clothes”.

She defended the prime minister’s actions as being within the rules, saying that the taxpayer doesn’t fund these things “so MPs will always take donations, will always take gifts in kind”.

She added: “We expect our politicians to be well turned out, we expect them to be people who go out and represent us at different events and represent the country at different events and are clothed appropriately.

“But the point is that when we accept donations for that or for anything else, that we declare them and we’re open and transparent about them.”

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