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Telegraph
11-06-2025
- Business
- Telegraph
How Starmer's immigration crackdown could kill off the Mickey Mouse degree
In 1999, Tony Blair pledged that half of young people would go to university. The sector mushroomed, producing a rash of so-called ' Mickey Mouse degrees ' – those useless, and now very expensive, courses that result in low salaries and few job prospects. But they may finally be under threat – from a Labour government. Sir Keir Starmer announced in May that universities would face tighter restrictions on recruiting overseas students as part of a wider push to reduce immigration. Under the reforms, universities would face a levy on fee income from international students and stricter restrictions on how long students can remain in the UK after they graduate. Telegraph analysis has identified more than a dozen universities that rely on foreign students for more than half their fee income, and whose graduates typically earn salaries of less than £30,000 five years after graduation. The table below shows these universities: Karl Williams, of the Centre for Policy Studies think tank, accused universities of 'papering over the cracks in their funding through foreign students', who they can charge unlimited fees. He said: 'Poor graduate salaries show that all too often the courses universities offer – both to domestic and international students – do not provide the outcomes students are hoping for. 'The only way to encourage universities to improve their courses and get themselves on a more sustainable financial footing is to clamp down on student numbers and create an immigration system which truly does attract the best and brightest.' Charging higher fees to foreign students to subsidise domestic ones is not unusual when compared to universities in Canada, Australia and the US. However, British universities have been hamstrung by a freeze on tuition fees since they were introduced in 2012. Professor Brian Hall, who chairs the Migration Advisory Committee, said: 'When tuition fees were introduced, universities could break even on their domestic students, and international students were a nice-to-have. 'Since then, universities have been told to keep their prices steady while paying higher pension, salary and building costs.' Universities therefore responded by introducing more cheap-to-run courses such as business studies, as opposed to engineering, and recruiting more students from abroad. But this approach is fast reaching its limit, and universities are already going bust. Prof Hall said: 'When inflation reached 10pc in 2022, that was the final nail in the coffin. The model can't continue in its current form, and I worry about some of the lower-ranked universities. 'If they push up their prices any more, they will see a reduction in the number of students applying.' Even after the coalition government granted universities the power to charge thousands of pounds a year for tuition, universities have plainly struggled to balance the books against a ballooning number of students. Just as Sir Tony envisioned, the number of successful applications through the University and College Admissions system in Britain ballooned from 335,000 in 1999 to a peak of 570,000 in 2020. Meanwhile, visas granted to overseas students reached a peak of 484,000 in 2022, with record numbers of Chinese and Indian students offsetting a decline in those from the EU after Brexit. A government report noted that the growth in the student population since 2020 'has been driven by increases in overseas students on postgraduate taught courses'. The total amount foreign students have paid through uncapped fees has more than doubled from £5.3bn to £11.6bn between 2017 and 2024. Meanwhile, domestic fees have increased by just £2.5bn in the same period, from £10.5bn to £13bn. Eyebrows have been raised at the merit of the courses for which universities charge full price, not least at media courses with modules on Disney, which would leave a typical graduate earning below minimum wage for five years. Nick Hillman, of the Higher Education Policy Institute, said Labour's white paper 'absolutely might mean some less prestigious courses are closed down'. He added: 'There are a lot of universities in the middle of the league table which are kept going by international students, and demand for their courses is very dependent on immigration policy. 'You have some courses where international students are propping up the course, and it probably applies to the very prestigious courses at the other end of the spectrum as well.' Universities reliant on a high number of students from Pakistan, India and Nigeria would be especially hit by restrictions on how long graduates can remain in the UK, Mr Hillman added. The Mickey Mouse universities In the 2023-24 financial year, the most recent for which data is available, one in three universities relied on foreign cash for over half their fee income, Telegraph analysis shows. These include 17 universities where a typical graduate earns a salary of less than £30,000 in five years, according to the Higher Education Statistics Agency (HESA). Among them is the University of the Arts, London, which made £242m in fees from foreign students in 2024, up from £91m in 2017. A typical UAL graduate's salary five years after graduation is £26,300 a year, according to HESA. A UAL spokesman said: 'The UK's creative industries are a huge contributor to the economy and the UK's status as a global creative leader must not be taken for granted. 'Measures of graduate success that focus narrowly on immediate post-university salary fail to reflect the realities of the creative industries.' Shadow education minister, Neil O'Brien, called on Labour to 'ensure that our higher education sector upholds the quality and global reputation it deserves'. He added: 'We have long warned that too many universities have prioritised revenue over rigour, offering low-value degrees to foreign students simply to boost their income.' The crackdown on universities' reliance on overseas students comes a year after Rishi Sunak pledged to scrap 'rip-off' degrees that the former prime minister claimed 'make students poorer', in favour of more funding for high-skill apprenticeships. Edinburgh Napier University similarly relies on overseas students for two-thirds of its fee income. The university raked in £46m from foreign students in 2023-24. However, a typical ENU graduate earns £29,200 a year five years after graduation. A university spokesman said: 'We are proud of our international students, who enhance the success of Edinburgh Napier and enrich the university experience for all. ENU graduates continue to make a positive difference to people's lives across a wide range of sectors around the world.' Universities UK, which represents all universities in England and Wales, argued there was 'no such thing as a Mickey Mouse university', and that measuring a university's quality by graduate salaries was too simplistic. A spokesman said: 'Some of the institutions named here are world-renowned in specialist fields like music, art or dance, while others do the vital job of training nurses and teachers – all are necessary for the country to thrive. 'The financial challenges facing universities stem from falling per-student funding, visa changes which have decreased international enrolments, and a longstanding failure of research grants to cover costs. 'However, it is simply wrong to pinpoint these institutions as particularly at risk, given the diverse range of income streams universities have.' A spokesman for the Office for Students said: 'We recognise that universities and colleges are facing increased financial challenges. 'However, we have repeatedly been clear that they should be alive to the risk of over-reliance on fee income from international students, particularly when recruitment is predominantly from a single country.' A government spokesman said: 'Students rightly expect a high-quality education, and the Office for Students has powers to protect their interests. In line with our mission to drive up standards through our Plan for Change, we have asked the OfS to make that work a priority. 'Our reforms will ensure value for money for students while delivering the high-quality education they deserve and ensuring universities play their part in driving economic growth. 'The Education Secretary and the OfS have been clear that many institutions will need to change their business models to ensure they remain financially sustainable.'
Telegraph
27-05-2025
- Politics
- Telegraph
Labour is normalising our new age of mass migration
The Government is bound to be pleased with the new net migration statistics from the Office of National Statistics (ONS). Numbers have fallen by around 40 per cent, to 431,000 last year. After the media firestorm over his 'island of strangers' speech, Keir Starmer might well feel that he's fulfilled his promise to 'finally take back control' of the borders. That would be premature, however. Net migration at that level is still a six-figure increase on the levels before the 2016 Brexit referendum, which was viewed as intolerable then. At this rate, Britain is still receiving the equivalent of the population of Bristol every year and would have added an extra 2 million people by 2029. The gross, as opposed to net, figure shows that nearly 1 million immigrants have arrived in the last recorded year. If the Prime Minister really thinks that mass immigration caused 'incalculable' damage to Britain, then he must think that it is still unacceptably high. The population of foreign-born people in Britain is at a record high of 11.4 million, with Karl Williams of the Centre For Policy Studies pointing out that a staggering 1 in 25 of people in Britain arrived here in the last four years. The number of immigrants granted indefinite leave to remain has increased, meaning that the share of the population with foreign origins will grow. That is a historically unprecedented demographic shift, which is already reshaping the country culturally. With immigration flows that high, integration will also prove difficult, if not impossible. In addition, with the number of new houses built only enough for around half of the new arrivals, the cost of housing will continue to increase. In truth, this reduction is largely a result of restrictions brought in by Suella Braverman and Robert Jenrick in the dying days of the last Conservative government. Although there have been more restrictions floated by the current Labour Government in their Immigration White Paper, these have yet to be enacted, and probably won't be for months to come. Plans for a Youth Mobility Visa with the EU, especially if it allows dependents, could easily see numbers begin to creep back up. The Prime Minister therefore needs to bring in greater restrictions soon. He can take heart that these dramatic reductions were the result of sensible restrictions on some dependents and an increase in the skilled visa salary requirement. With the new ONS figures showing that 81,000 came here on work visas but were outnumbered by their 132,000 dependents, as well as large numbers coming on family visas or student visas, further restrictions could lower numbers without affecting how many workers despite the predictions of critics, the large drop in net migration hasn't produced the economic problems they foretold. Greater restrictions will also be necessary because the net migration figures for prior years are often subsequently revised upwards. In 2023 net migration turned out to be 22 per cent higher and in 2022 it was 44 per cent higher than initially calculated. If that proves to be the case again, then the Prime Minister's promise to reduce immigration 'significantly' will end up looking very hollow.
The Independent
16-05-2025
- Politics
- The Independent
Fact check: Report estimated 686,000 migrants would settle over 3.5 years
The Conservative Party claimed on social media that two million immigrants could become British citizens in 2026. On several social media channels, the party wrote: '2 Million Immigrants. That's how many people could get British Citizenship next year.' Evaluation This figure appears to come from a report which measured the number of people who could get Indefinite Leave to Remain – not citizenship – spread over a 3.5-year period between January 2026 and June 2029 – not just next year. The figure was calculated by counting all those who arrived in the UK between January 2021 and June 2024 on a long-term visa which makes them eligible for Indefinite Leave to Remain. To this was added those who arrived in that period on an ineligible visa, but later switched to an eligible visa. That produced a figure of two million. But that is before taking into account people who leave the country, or who stay but never apply for Indefinite Leave to Remain. After taking into account such possibilities, the report's authors estimated that around 686,000 of those two million would receive Indefinite Leave to Remain over the 3.5-year period. The facts In a press release shared with the media on May 15 – the same day that the claims were posted on social media – the Conservative Party pointed towards an analysis from the Centre for Policy Studies (CPS) think tank. That report deals not with citizenship, but with Indefinite Leave to Remain. ILR – also called settlement – gives a person the right to live, work and study in the UK for as long as they like. Most people are eligible for ILR if they have lived and worked in the UK for five years, depending on their visa type. Although many people are eligible after being in the UK for five years 'some wait considerably longer before applying,' the CPS report said. Once someone has ILR they get the right to apply for British citizenship after a further 12 months. What time period did the CPS report deal with? The CPS report did not say that two million people could get ILR in 2026. Instead it looked at the number of long-term visas issued between January 2021 and June 2024 – a total of around 3.8 million. Those of the 3.8 million who arrived in 2021, have stayed since then and have the right visas, will become eligible for ILR in 2026. Those who arrived in 2022 will be eligible in 2027 and so on. Where does the two million figure come from? The CPS estimated that around two million people from the 2021-2024 cohort could be eligible for ILR over the 3.5 years between January 2026 and July 2029. Assuming they are still in the country. The think tank got to this figure by excluding visas that would not make people eligible for ILR after five years. That left 1.7 million out of 3.8 million total long-term visas issued between January 2021 and June 2024. To this number it added those who had switched from a ineligible to an eligible visa after some time in the UK – for instance changing from a student to a work visa. By adding in these people who have switched visa the CPS estimated that a further 289,000 students who arrived in the UK between January 2021 and June 2024 could become eligible for ILR between January 2026 and June 2029. That takes the total to around two million. By CPS estimates, a little under 400,000 of those could become eligible in 2026. What proportion of the two million are likely to get ILR, according to the report? Not all the two million are likely to have stayed in the country for the full five years, and some of those who do stay for the full period will still not apply for Indefinite Leave to Remain. The CPS report estimated that out of the cohort of two million, around 686,000 people will obtain ILR between January 2026 and June 2029 and a further 115,000 by 2040. That is a total of 801,000 of those who came between January 2021 and June 2024. The CPS warned that some of its estimations were based on what proportion of people on certain visas had in the past eventually gained ILR. These proportions might be different in the cohort that arrived between January 2021 and June 2024. The CPS report's 'new paradigm' scenario where it assumes that the 2021-2024 cohort is much more likely to gain ILR sees around 1.2 million of them being granted Indefinite Leave to Remain. The video In a video accompanying the posts by the Conservatives on social media, the party's leader Kemi Badenoch says that the two million could claim citizenship 'from next year' – not in 2026 as the text in the posts claimed. Although it avoids the text's mistake, this still does not take into account that it will take these people a year from getting ILR before they are eligible for citizenship. That means that they will not be able to apply for citizenship until at least 2027. Links
