Conclusions and recommendations
International Students in Scotland
1.We welcome all international students who choose to study at Scottish Higher Education Institutions. The number of both EU and non-EU international students at Scottish HEIs is a testament to the high quality of Scottish universities. These students help create a global environment which is of benefit to students of all nationalities, and non-EU international students also make an important financial contribution to both the higher education sector and local economies. (Paragraph 18)
Past and present post-study work routes
2.The closure of the Tier 1 (Post-Study Work) visa in 2012 has resulted in the number of non-EU international students moving to work visas after their studies falling by over 80%. This is far beyond what the Government predicted in its impact assessment of closing this route, indicating the results have been more drastic than intended. It is extremely disappointing that the Home Office is not able to identify the specific impact to Scotland, but we have heard that it has been significant and negative. (Paragraph 28)
The case for improving post-study work routes in Scotland
3.Scotland has different demographic needs than other parts of the UK, due to slower population growth and a need to expand the size of the workforce, and 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 these challenges. Our forthcoming inquiry into Scotland’s demography will explore in more detail the demographic challenges faced by Scotland, and consider which policy levers are needed to respond to them. (Paragraph 32)
4.The world class reputation of Scottish Higher Education Institutions means they have had great success in attracting international students from across the world. However, there is clear evidence that post-study work offers play a significant role in decisions by international students of where to study, and Scottish HEIs are at a competitive disadvantage compared to countries outside of the UK with more generous post-study work offers. The Government should consider how the post-study work routes available in the UK relate to its desire to “increase the number of high quality, genuine international students coming to our world-class universities”. (Paragraph 37)
5.We welcome the Government’s recognition that “there should be opportunities for the brightest and best graduates from UK universities to remain in the UK to work”. The majority of evidence we have heard argued that the UK’s current post-study work routes fail to achieve this and are not meeting the needs of Scotland. This was contradicted, however, by the Minister for Immigration who told us that there was currently “a very good arrangement in place.” Evidence we received argued that the period of time international students have to find a Tier 2 job—four months—is too short, the minimum salary thresholds do not reflect the reality of graduate salaries in Scotland, and acting as a Tier 2 sponsor is costly and burdensome for employers. These issues are a particular barrier to SMEs, which make up the vast majority of employers in Scotland. SMEs are less able to offer salaries at the Tier 2 thresholds and lack the resources and expertise to navigate the complicated process of being a Tier 2 sponsor. It is disappointing that the complaints we have heard from business groups, the education sector and the Scottish Government were not recognised by the Minister for Immigration. (Paragraph 47)
6.We agree with the overwhelming majority of contributors to our inquiry who argued that, given the particular skills and demographic needs of Scotland, and inadequacy of current arrangements, post-study work routes for non-EU international students attending Scottish HEIs need to be reformed. Improving the ability, within Scotland, to retain non-EU international graduates would increase the pool of skilled workers available to Scottish employers, and play an important role in filling skills shortages. Improved post-study work opportunities would also enhance the ability of Scottish universities, which operate in an extremely competitive international market, to attract international students. Although these arguments might also apply elsewhere in the UK, the skills and demographic needs of Scotland mean that there is a specific case for Scotland. (Paragraph 48)
7.Several parliamentary committees and groups have considered post-study work routes on a UK-wide basis, and recommended that they be improved. It is disappointing that the Government has not responded positively to any of these recommendations. We urge the Government to take a more constructive approach not only to this report but to the work into this issue that has already been done, and is currently being undertaken, by parliamentarians across the UK. (Paragraph 50)
Options for improving post-study work routes
8.In order for the Tier 2 (General) visa to be an effective post-study work option for non-EU international students attending Scottish HEIs, it is essential that the current system be reformed. Specific issues which must be addressed are the length of time international graduates have to find Tier 2 employment, the minimum salary thresholds that apply in Scotland, and the burden faced by employers which sponsor Tier 2 jobs. We welcome the Home Affairs Committee’s recommendation that the Government consider how it might devise policies that reduce the barriers for international students to stay in the UK and take up high skilled employment, and the Secretary of State for Scotland’s willingness to take forward the recommendations set out in this Report. (Paragraph 57)
9.We recommend that the Government commission the Migration Advisory Committee to review current provisions for transferring from a Tier 4 (General) student visa to a Tier 2 (General) visa, with a view to making recommendations to better enable highly skilled non-EU international students graduating from further and higher education institutions to remain in the UK and contribute to economic activity for a defined period of time. Options which should be considered include extending the period of time international students have at the end of their student visa and looking at how sponsorship can be made less costly and burdensome for employers. This should be carried out alongside work, which we recommend in the next section, to consider regional salary thresholds for Scotland. (Paragraph 58)
10.We note with great concern the outcome of the Migration Advisory Committee’s recent review of the Tier 2 visa. We strongly oppose any changes to the Tier 2 visa which would restrict the ability of non-EU international students, attending Scottish HEIs, to move from a student to a work visa. We are particularly concerned that the MAC’s findings do not meet the needs of Scotland, and that the implementation of its recommendations would further concentrate post-graduate work, for non-EU international graduates, in London and the South East of England. (Paragraph 63)
11.We recommend that the UK Government delay any decision on implementing the MAC’s recommended changes to the Tier 2 visa until the MAC has provided advice on improving post-study work routes for non-EU international students and, specifically, on how Tier 2 salary thresholds can be made to account for the reality of graduate salaries in Scotland. This advice should then inform the Government’s consideration of how Scottish interests can be reflected in the current visa framework. (Paragraph 64)
12.The UK Government should work with the Scottish Government and Higher Education Institutions (HEIs) in Scotland to ensure that post-study work offers available to non-EU international students attending Scottish HEIs are better promoted to potential and current international students, as well as employers who may want to access international talent. Promoting the UK’s post-study work offer will be much more difficult if the Government implements the Migration Advisory Committee’s recommendations for further restrictions to Tier 2 visas.
(Paragraph 67)
13.We acknowledge the challenges which would be involved in establishing a “Scotland-only” post-study work visa for non-EU international students who have studied at Scottish universities, but we have received compelling evidence that these challenges could be overcome. The requirements for employers to check right to work and landlords to check right to rent would facilitate the existence of a Scotland-specific visa. The Government should not use the need to develop practical details of how such a scheme could be implemented as an excuse for not engaging in discussions about introducing a formal post-study work scheme for Scotland. (Paragraph 75)
14.There are several lessons which can be learned from past post-study work schemes. These include the effectiveness of past post-study work schemes in enabling international graduates to find skilled employment, and also the risks that if such schemes are not structured to lead people into graduate level work they can result in international graduates staying in the UK and taking up unskilled work. We hope that the lessons we have identified will inform proposals for a post-study work scheme for Scotland. (Paragraph 84)
Engagement by the UK Government
15.The Smith Commission stated that the UK and Scottish governments should “work together” to explore the possibility of introducing formal schemes to allow international higher education students graduating from Scottish further and higher education institutions to remain in Scotland and contribute to economic activity for a defined period of time. The UK Government has failed to engage on this issue, and its insistence that the schemes referred to by the Smith Commission already exist is plainly at odds with the recommendation made by the Commission. The lack of engagement by the UK Government is particularly disappointing given the overwhelming view from Scotland that the current system is not suitable and a better solution is needed. It is impossible to conclude anything other than that the UK Government is failing to fulfil the recommendation of the Smith Commission on this issue. (Paragraph 91)
16.Although we have been disappointed with the Government’s engagement on this issue thus far, we welcome the Minister for Immigration’s confirmation that he is happy to meet with Scottish Ministers, and the Secretary of State for Scotland’s statement that he would take forward any improvements to existing arrangements we identified, which would benefit Scotland. That said, given the Scotland Office is meant to represent Scottish interests within the UK Government, it is disappointing that the Secretary of State for Scotland has so far failed to lead on an issue which is of such importance to Scotland. (Paragraph 92)
17.We recommend, in line with the recommendation of the Smith Commission, that the UK Government enter into discussions with the Scottish Government to explore introducing formal post-study work schemes for international higher education students graduating from Scottish further and higher education institutions. The Secretary of State for Scotland should ensure that the UK Government responds positively to the recommendation made by the Smith Commission. (Paragraph 93)
© Parliamentary copyright 2015
Prepared 10 February 2016