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UK graduate visa cut to 18 months, amid proposal for new levy on foreign student fees

The UK government has announced significant changes to its post-study work visa and international student policies, signaling a strong shift in how migration and education intersect in the country.

In a sweeping new immigration white paper titled “Restoring Control over the Immigration System,” Prime Minister Keir Starmer’s administration laid out plans to reduce the Graduate Route visa from two years to 18 months, citing the need to bring net migration down and boost domestic skills development.

This move comes as part of a broader effort to overhaul the UK’s reliance on international students and workers to plug gaps in training and education.

🎓 Shorter Stay for Graduate Visa Holders

The Graduate Route, which currently allows international students to stay in the UK for two years after completing their degrees, will now be limited to just 18 months. The government says this adjustment is aimed at encouraging only the most committed graduates to transition into skilled employment within a tighter timeframe.

💰 Possible Levy on Universities Accepting International Students

The white paper also introduces the possibility of a 6% levy on international tuition fees earned by UK universities. If implemented, the funds would be reinvested in local workforce training and the domestic education sector. Final decisions are expected in the upcoming Autumn budget.

📋 Tougher Rules for Universities

Universities will now face stricter standards if they want to keep sponsoring international students. Compliance benchmarks are being raised:

  • Enrolment rates must now be at least 95%

  • Course completion rates must hit 90%

  • Institutions will be rated under a Red-Amber-Green system, with public grading and the risk of recruitment restrictions for underperformers.

Also, the Agent Quality Framework (AQF), which ensures ethical recruitment by overseas agents, will become mandatory across all institutions.

👷 Pressure on Employers to Prioritize Domestic Talent

It’s not just universities that are affected. Employers hiring skilled foreign workers will face new responsibilities to invest in domestic training, reducing reliance on migrant labor. A new Labour Market Evidence Group will guide policy based on actual skills shortages, using data to ensure that migration supports — rather than replaces — UK talent.

🇬🇧 A Stronger Stance on Migration

With net migration having quadrupled since 2019 — partly due to international student influx — the government is under pressure to regain control. “Enforcement will be tougher than ever and migration numbers will fall,” Starmer stated.

These policy changes mark a turning point in how the UK balances education, employment, and immigration. For international students and institutions alike, the message is clear: compliance will be stricter, timelines shorter, and expectations higher.