House of Lords - International Science, Technology, Engineering and Mathematics (STEM) students

International Science, Technology, Engineering and Mathematics (STEM) students - Science and Technology Committee Contents

Chapter 2: Background and context

Data on international student numbers

9. The number of international students coming to study in the UK has increased considerably over the last decade. As can be seen in Figure 1, however, following a period of sustained growth, in 2011/12 there was a fall of 0.4% in the total number of new international students enrolling at UK Higher Education Institutions (HEIs). This was followed in 2012/13 by a further 1% decrease in the total number of new international students. The data indicate that there has been a much larger reduction in the number of new international STEM students compared to students of other disciplines. Between 2010/11 and 2011/12 there was an 8% decrease in the number of new STEM students. This was followed by a further 2% decrease between 2011/12 and 2012/13. Meanwhile, in 2011/12 the numbers of new students of other disciplines continued to rise, but fell slightly in 2012/13.

FIGURE 1

Number of international STEM and non-STEM entrants to UK Higher Education Institutions from non-EU countries (undergraduate and postgraduate)

Source: Higher Education Statistics Agency—data provided by BIS.[6]

10. When the data are separated by level of study, it can be seen that much of the decline in total international student numbers is accounted for by fewer students taking postgraduate taught courses, particularly in STEM subjects (Figure 2). Between 2010/11 and 2011/12 the numbers of new international students taking postgraduate taught courses in STEM subjects fell by 13%. This was followed by a further fall of 3% in 2012/13. The number of new undergraduates enrolling on STEM courses fell by 5% and then 4% over the same two years. Meanwhile, the number of international postgraduate research students in STEM subjects continued to grow slowly.

FIGURE 2

Number of international STEM and non-STEM entrants to UK Higher Education Institutions from non-EU countries by level of study (undergraduate and postgraduate)

Source: Higher Education Statistics Agency—data provided by BIS.

11. Within these data, there are some large differences in the way in which different STEM subjects have been affected (Figure 3). Engineering and technology, computer science and subjects allied to medicine are the three subjects with the highest numbers of international STEM students. All three subjects have seen recent declines in the numbers of new international students taking undergraduate or postgraduate taught courses. At the same time, some other STEM subject areas have seen recent increases in the numbers of new international STEM students taking undergraduate or postgraduate taught courses.

FIGURE 3

Number of international STEM entrants in different subject areas.
Top panel: undergraduate. Bottom panel: postgraduate taught

Source: Higher Education Statistics Agency—data provided by BIS.

12. Whilst the numbers of new STEM students originating from some countries are falling, the numbers from other countries are rising. Figure 4 shows total numbers of new international STEM students from the 10 countries that send most students to the UK. The Department for Business, Innovation and Skills (BIS) told us that:

FIGURE 4

Total STEM entrants by country of domicile from the ten countries that send the most students to the UK (undergraduate and postgraduate)

Source: Higher Education Statistics Agency—data provided by BIS.

13. The number of students from India increased rapidly from 2003/04, reaching a peak of nearly 12,000 in 2008/09. In the last two years, there has been a dramatic fall in the number of Indian students coming to study in the UK to around 5,000 students. Although the numbers of students coming from Pakistan and Saudi Arabia are far smaller, a decline in student numbers has also been seen over the past two years. There is also a slight reduction in the number of students from Nigeria following a period of steady growth. Meanwhile, the number of students from China has increased from just below 7,000 in 2008/09 to nearly 12,500 in 2012/13. The data show a volatile recent history in student numbers from both India and China.

14. BIS told us that the STEM subjects that Indian students were most likely to study were the three which showed the greatest recent declines in numbers of new entrants: engineering and technology, computer sciences and subjects allied to medicine. BIS suggested that declining overall numbers could be explained by "an India effect that is particularly affecting those subjects within the STEM results."[8] A steep decline is seen in the numbers of students from India taking these subjects (Appendix 4). Meanwhile, the data from China show a large increase in the numbers of new students studying engineering and technology.

15. It is important to note that both India and China are important markets for UK universities seeking to attract international students. The population of 20-25 year olds in each country is currently over 100 million.[9] Mr Stevens, International Students' Officer, National Union of Students (NUS), suggested, however, that there was a risk if the UK relied on recruiting Chinese students:

16. This is the picture at the national level. Universities of course collect their own data. There are indications in the evidence we received that universities have been affected in different ways. Some universities reported that growth in international STEM student numbers remained strong, others reported continued growth but not at the rates which might have been expected, whilst others reported plateauing or declining numbers of international STEM students.[11] Corresponding to the national level data, many universities reported a fall in the numbers of students from the Indian subcontinent.[12] In some cases this fall had been compensated for by increases in the numbers of students from other countries, in particular, China. As might be expected, based on the national level data, universities with a focus on postgraduate taught courses reported declining numbers of international STEM students.[13] There may also be other trends in how different types of university have been affected, perhaps depending on location, the types of course on offer, or their international reputation.[14] Further analysis to understand how different types of university have been affected could be a useful addition to the evidence base.

Interpreting the data: Influencing factors

17. There are many factors which influence international students when they decide where in the world to study. During this inquiry, we heard a lot of concern about the effects of changes in the immigration rules, or of the perception that these changes have created. This section of the report begins with a description of these changes before moving on to discuss other possible influencing factors. Competition from universities in other countries is fierce and increasing. It is important to remember that there is an extent to which the global market for international students is naturally volatile. It is also important to note the difficulties in separating temporary fluctuations in numbers from altered trends and in establishing a link between cause and effect. Nevertheless, if the Government have ambitions to attract international students to study at UK universities, it is important to identify as early as possible any factors which could inhibit these ambitions.

THE IMMIGRATION RULES

18. The Government have made some significant changes to the immigration rules relating to international students during this Parliament, as summarised in Figure 5.

FIGURE 5

Changes in immigration rules timeline

The Home Office was invited to provide a timeline in order to guarantee accuracy. As no timeline was provided, this information has been extracted from a variety of sources.[15]

19. We heard concerns about the impact on students and universities of the rate at which the rules are changing. Professor Atkinson from the University of Leicester told us:

20. The UK Deans of Science expressed similar concerns:

21. The Government lay statements of changes to the immigration rules before Parliament. In 2013 there were thirteen changes and so far in 2014 there have been three. As the UK Deans of Science note, not all of these are relevant to students and not all are major policy changes such as those set out in Figure 5; some make minor adjustments to the immigration rules. A sponsor must, however, keep abreast of changes to ensure that their advice to students remains relevant.

22. The Government introduced its reforms to the immigration rules for students following concerns that the system was being abused. It was intended that the timing of the major policy changes would be phased in order to give the sector time to adjust.[18] The Government's concerns centred around the private Further Education sector, which the Rt Hon Theresa May MP, Home Secretary, described as "essentially unregulated … Although some of them are legitimate, for many their product is not an education, but immigration, together with the ability to work here."[19] Theresa May also noted that: "universities, independent schools and publicly funded further education colleges mostly take their sponsorship duties seriously and act responsibly." The measures, which the Government introduced, were clearly intended to target the problems with bogus students and certain private Further Education colleges. In this respect, the revisions to the immigration rules have clearly had an impact. The numbers of applications for visas for study at Further Education colleges[20] fell by 74% between 2011 and 2013 and by 69% at English language schools.[21] This represents 65,000 fewer visa applications in these categories than in 2011.

23. We commend the Government's intention to improve standards and reduce abuse of student immigration visas. We can see that action was necessary and the steps taken have indeed reduced visa applications in the areas most open to abuse. We are concerned, however, that the tightening of the visa rules may have had unintended consequences and had impacts on bona fide students at all levels, but particularly on university students, and has certainly contributed to creating a perception that the UK is less welcoming. As recognised by the Government, the problem with abuse of the system was not with universities, who, through their recruitment procedures, took care to ensure that their offer was made to high quality students.

24. Although our report concentrates on unintended consequences for university students, it is also notable that Further Education colleges and English language courses can be an important step in recruiting international students to study at UK universities. As Mr Stevens, International Students' Officer, National Union of Students, put it to us: "You are seeing a massive decline, not at university level, but at pre-university level. This is going to have a huge impact down the line … [it is] what is happening at further education and before that is going to be quite critical."[22] It will therefore also be important for the Government to carefully monitor the impacts of its immigration reforms on this sector.

25. As described in Box 1, in order to study in the UK, international students need a Tier 4 student visa. The Government have introduced reforms to the Tier 4 visa requirements. These reforms introduced accreditation requirements for colleges, along with changes to: the standards of English required, working rights and hours,[23] and dependants' sponsorship.[24] As the Government continue to emphasise, no limit has been set on the number of student visas which can be issued.[25]

BOX 1

Visas

People from outside the EU who wish to enter the UK to work or study must apply for a visa. Different types of visas are available, depending on the purpose of coming to the UK. Applicants must meet specified criteria, which vary depending on the type of visa. The types of visas, which are most relevant to international STEM students, or recent graduates, are briefly described below.

Tier 1: Highly Skilled Migrants. There are several different categories of Tier 1 visa.[26] The category most likely to apply to recent graduates is the Graduate Entrepreneur visa, which was introduced in 2012. This applies to graduates who have "been officially endorsed as having a genuine and credible business idea,"[27] by UK Trade and Investment (UKTI) and their Higher Education Institution. The Post Study Work visa used to operate under Tier 1, but this has now been closed.

Tier 2: Skilled Worker. The Tier 2 General Visa applies to those who have been offered a skilled job in the UK by a licensed employer. The total number of Tier 2 visas is capped at 20,700 places a year. Recent graduates can switch to a Tier 2 General Visa[28] and do not count against the 20,700 limit, provided they remain in the country. They must earn a salary of at least £20,300.

Tier 4: Student Visa. All international students require a Tier 4 visa. To qualify for a Tier 4 General Visa, prospective students need to provide: a valid Confirmation of Acceptance for Studies (CAS) from a fully licensed Tier 4 sponsor; evidence that they have enough money to cover course fees and monthly living costs; evidence that they have a specified level of competency in the English language. Visas are usually limited to a maximum of five years, with some exceptions. PhD students can now apply for a 12 month extension to their Tier 4 visa to stay in the UK after their course has ended under the Doctorate Extension Scheme, which was introduced in 2013.[29]

Tier 5: Temporary Worker Visa. There are several types of Tier 5 visa. People who wish to come to the UK for a short period of time to do work experience, training, research or a fellowship through an approved government authorised exchange scheme can apply for a Tier 5 visa.[30] Recent graduates can switch to a Tier 5 visa in order to do a "period of professional training relating to their degree."[31]There is no minimum salary requirement.

26. To qualify for a Tier 4 visa, the Home Office requires that prospective students provide a valid Confirmation of Acceptance for Studies (CAS) from a fully licensed Tier 4 sponsor along with evidence that they have enough money to cover course fees and monthly living costs.[32] Tier 4 sponsors are required to keep records of the students they sponsor and inform the Home Office if a student fails to attend a course. Tier 4 sponsors are audited to ensure they are compliant, and can have their trusted sponsor status withdrawn if they are found to be in breach of the requirements.

27. Universities are responsible for assessing students' academic qualifications and English language abilities before they award a CAS certificate. In addition, students need to provide their original certificates of qualification when they apply for a visa, unless they come from a 'low risk country;' although the criteria used to define what constitutes a low risk country are unclear.[33] They may also be asked to undertake a credibility test interview. These interviews were first introduced in 2012 and have now been extended to over 100,000 interviews per year.[34] Applications are refused if, on the basis of this interview, the Home Office is not satisfied that the student is genuine, if they cannot speak English to the required standard, or if the "application is shown to fall for refusal under the General Grounds for Refusal."[35]

28. Previously, international students could apply for a Tier 1[36] Post Study Work (PSW) visa. This enabled international graduates to work in the UK for up to two years after obtaining a UK degree. The Government, however, considered that this undermined the principle that student visas are for temporary migration.[37] In 2012, the Government removed the PSW route and replaced it with more selective arrangements under Tier 2.[38] To qualify for a visa under this route, students must be entering a graduate level job with an offer of employment paying at least £20,300 a year. The minimum salary required varies depending on the type of job and is set at the tenth percentile of the pay distribution for UK employees in that occupation.[39] Although the total number of Tier 2 visas is capped at 20,700 places a year, graduates transferring from a Tier 4 to a Tier 2 visa do not count against this annual limit providing they remain in the country. A Tier 4 visa typically remains valid for 4 months following the end of a course. The Rt Hon David Willetts MP, the Minister for Universities and Science, confirmed to us that the four months began from the end of the course rather than when results are published.[40]

29. Since the removal of the PSW route, the Government have introduced a range of additional measures to allow international students to work in the UK following the completion of their studies. The Government described these measures in their written response to this inquiry:

OTHER INFLUENCING FACTORS

30. Immigration rules are not the only influence on the number of students coming to study in the UK. The Government told us that they: "do not believe that the evidence shows an adverse impact from changes to the immigration rules."[42] James Brokenshire MP, Minister for Immigration and Security, pointed to a 7% increase in the number of visa applications from students sponsored by universities in 2013.[43] The number of visa applications, however, also rose in preceding years, without a corresponding increase in enrolments. It remains to be seen whether the 7% increase in applications will result in higher numbers of international students beginning courses at UK universities.

31. The Government also suggest that growth in the number of students from China, Malaysia and Hong Kong, along with the increase in the number of postgraduate research students, implies that: "the fall in international STEM students is not driven simply by changes in the immigration policy."[44] The Government consider that: "any impact of the visa regime on the UK's attractiveness to international students has been marginal, and overall nothing like as significant as some of the more alarmist predictions had feared."[45]

32. The Government told us that they "believe that the largest impact on international students, STEM or otherwise, has come not from any actual policies, but from the way these policies have been misrepresented."[46] Mr Williams, Director, Office for Life Sciences, BIS, told us that: "we are in a competitive market and if there are perceived difficulties within the UK these difficulties will get played back by the media in the countries concerned."[47] Many witnesses suggested to us that a perception of difficulties with the immigration rules did indeed have a large influence on prospective international students.[48] As RCUK noted:

33. The UK Deans of Science suggested that the rhetoric associated with the immigration debate had "a negative influence on the attractiveness of the UK as a location for higher education."[50] They also pointed to negative coverage of the UK's immigration policies, particularly in the Indian press, but also in China. The Society of Biology told us:

34. We also heard that increased competition for international students from other countries was a potential influence on UK student numbers. As the British Council noted: "Competition for students is growing, especially for the most ambitious students and the market will only become more challenging for the UK as our competitors offer simpler, more attractive and cheaper visa choices for students."[52] The Russell Group stated that: "international students are, by their very nature, highly mobile; we face stiff competition to attract them to the UK."[53]We heard from numerous sources that countries such as the USA, Australia, Canada, Singapore and Malaysia were increasingly competitive destinations for international students.[54] We were also told about competition from other European countries, which now offer courses taught in English in addition to more attractive visas and in some cases financial incentives.[55]

35. Other factors which could influence students' choice of where to study include currency fluctuations, tuition fees and cost of living. The Government pointed to the decline in the strength of the rupee against the pound as contributing to the decline in the number of Indian students coming to the UK, stating that: "There were also decreases in numbers of Indian students going to the USA and Australia (2010/11 to 2012/13)."[56]Generally, the evidence suggested that currency fluctuations were not a major factor in explaining recent reductions in international STEM students. Daniel Stevens, NUS, pointed to more competitive offers to international students from other countries as being a greater influence than currency fluctuations.[57] Professor Riordan, Vice-Chancellor of the University of Cardiff, Chair of Universities UK's International Policy Network and Chair of the UK Higher Education International Unit, told us that the fall in numbers from India was before the loss of value of the rupee and that it was possible to see a fall in applications from India at the point the visa rules changed. Furthermore, he suggested that:

36. Figure 6 shows the total number of students from India at HEIs in other countries.[59]A breakdown by subject area is not available. Between 2010/11 and 2012/13 the UK saw a 42% decrease in the total number of Indian students, whilst the USA saw a 7% decrease. Canada has seen continuing increases in the numbers of Indian students since 2008/09, as has Germany, albeit from low starting levels. After a period of sustained growth, in 2009 Australia saw a sharp drop in the numbers of international students, including those from India.[60] As the British Council told us: "It was recognised by many (including [the Australian] government) that 'a range of factors have contributed to this including increased global competition, changes to Australia's migration settings and a rising Aussie dollar. Many in the sector refer to these, and other factors, as creating 'the perfect storm.'"[61]

37. In 2012/13, Australia saw some recovery in international student numbers, including those from India. The British Council noted that "2009 coincided with tightening of the visa processes, and 2012 coincided with streamlining of visa processes and re-introduction of post study work opportunities," along with other measures to improve the experience of international students in Australia.[62] These changes were put in place following the 2011 Strategic Review of the Student Visa Programme.[63]

FIGURE 6

Total number of students (undergraduate and postgraduate) from India at Higher Education Institutions in the UK, USA, Australia, Canada and Germany

Data provided by the British Council.[64]

38. We conclude that there are many potential factors which influence the choices of prospective international students when deciding whether to come to the UK or to study elsewhere in the world. Immigration policies are one of these factors and there is clearly genuine concern that the changes made during this Parliament are deterring students from coming to the UK. The global market for international students is extremely competitive. It is therefore important that the Government carefully and regularly review the package they are offering to international students and ensure that it enables UK universities to remain competitive in attracting international STEM students.

39. We therefore recommend that every two years the Government review comprehensively the experience offered to international students by the immigration process and assess how the rules—specifically in terms of entry and the ability of students to stay and work in the UK after completion of their studies—compare with the UK's competitors. The Government should publish a report to Parliament setting out in full their evidence base, analysis and findings of the review.

40. The following Chapter focuses on specific issues drawn to our attention during this inquiry and makes recommendations which would enhance the UK's offer to international students and enable the Government to achieve their target of growing the numbers of international students in higher education by 15-20% over the next five years. Crucially, we do not believe that these recommendations will infringe on the Government's commitment to tackle abuses in the immigration system or their commitment to reduce net migration.

6 Data represent international students studying any Higher Education qualification at a publicly funded Higher Education Institution. International students studying Higher Education qualifications at alternative providers or at Further Education Colleges are not included in these data. Back

7 Q 2. Back

8 Q 2. Back

9 UN Population Division. Back

10 Q 19; Note: the UN Population Division data shows a 39% decline in the number of 20-24 year olds between 2010 and 2020. Back

11 For example: Q 65 (Professor Finkelstein); University of Oxford; University of Sheffield; Q 34 (Professor Riordan); University of Warwick; Brunel University; Coventry University; Q 33 (Professor Rippon); Q 54 (Professor Gregson). Back

12 For example: Q 65 (Professor MacGregor); Q 34 (Professor Riordan); Q 17 (Professor Lockett); Q 18 (Mr Bradley). Back

13 Q 33 (Professor Rippon); Q 54 (Professor Gregson). Back

14 For example, see Russell Group evidence. Back

15 Government; Government further supplementary; Gov.uk: Immigration Rules: Statement of Changes. https://www.gov.uk/government/collections/immigration-rules-statement-of-changes; House of Commons Standard Library Note (2011) Immigration: Tier 4 (student visa) reforms; Home Office (2012) Statement of Intent: Changes Affecting Study, Post-Study Work and Maintenance Requirements for Students and Workers. Back

16 Q 55. Back

17 UK Deans of Science. Back