Statement of Changes in Immigration Rules

My Lords, I am grateful to the noble Lord, Lord Avebury, for raising this important subject and for his prior notice of some of the questions that he was going to ask, as it gives me an opportunity to explain to the House the background to the changes to the Immigration Rules for students studying under tier 4 of the points-based system and why they were introduced with some urgency. Before I do so, I acknowledge the unique contribution that international students make to the country as a whole, as well as to the universities and colleges where they study. Their contribution goes much wider than the £8.5 billion that they contribute to the economy and can be seen in areas as diverse as investment in the UK and the future prominence of the UK on the world stage. The noble Viscount, Lord Bridgeman, the noble Earl, Lord Sandwich, and the noble Lord, Lord Lucas, touched on this and I absolutely agree with the points that they made about the value of such students. The changes form part of the measures that were agreed following the Prime Minister’s review of tier 4. It may be helpful if I explain the background to the review. Tier 4 is a system that tackles the immigration abuse and reputational damage caused by bogus colleges and bogus students. We have been broadly supported on this journey by the legitimate education sector, which is responsible for securing the UK’s place as a world-class education provider. Tier 4 was introduced on 31 March last year. The new system of sponsor licensing has prevented immigration criminals from obtaining licences. The current register has around 2,000 licensed institutions, which is half the estimated number of institutions that were previously active in recruiting international students, but the review showed that, given that the system was new, there was still more to be done. Despite this reduction in the number of institutions, we have seen an increase in the number of student applications compared with the numbers in previous years. When UKBA staff in some parts of the world expressed concern about this, it was right for the Prime Minister to call for a review. Given the urgent need to understand what was happening to prevent potential abuse, the review team was set a challenging timescale of four weeks to gather evidence from the UK Border Agency and to consult the education sector. The review team from the Home Office and the Department for Business, Innovation and Skills was asked to assess whether tier 4 policy was striking the appropriate balance between facilitating genuine students’ access to education in the UK and preventing abuse by economic migrants. Despite the challenging timescale, the review team held meetings with all the main education representative bodies to listen to their views and accepted their representations, along with several hundred additional responses that were received from individual providers. There is, as a couple of speakers have said, a code of practice on formal written consultations, but it is non-binding and, given concerns about the security of immigration control, it was decided that it was not appropriate to conduct a formal written consultation of the type that is covered by the code. Notwithstanding that lack of a formal written consultation, any suggestion that the review took no account of the sector’s views is wrong. The findings of the review confirmed that there was evidence of higher student application rates in some parts of the world than in previous years—the rate was up by approximately 250 per cent in parts of south Asia—and these increases were far more significant compared with those in our main competitor countries. In the areas of concern, the students were seen typically to enrol on low-level English language courses and courses below degree level. A further trend was of student applicants with little English coming to study lower-level courses, despite having been out of education for many years, and seeking to bring their dependants. There were also significant numbers of reports on students who had failed to enrol or who had dropped out of their courses soon after arrival. Ministers agreed that the review had demonstrated sufficient evidence of potential abuse to justify introducing further measures to strengthen tier 4 and to do so without delay. On 10 February, my right honourable friend the Home Secretary announced a targeted package of measures, of which these changes to the Immigration Rules form a crucial part. These rules were laid at the first realistic opportunity following the announcement by my right honourable friend the Home Secretary. I now beg noble Lords’ patience as I explain the changes in more detail, as this is one of those occasions when detail is important. The detail demonstrates that, far from ignoring the views of the education sector when making the changes, the Government have responded to its concerns. First, the change to the English language level means that applicants are required to have a higher level of competency in English before they can use tier 4. As a number of speakers have said, this may seem to be a major change, which could arguably have a significant impact on the English language sector in particular. However, complete beginners have never been able to use the tier 4 route, and the student visitor route, which operates outside the points-based system, continues to be available to beginners and to low-level students. The Government contend that this is the more appropriate route for such students, and independent research confirms that an average student can progress to the standard required for entry under tier 4 during a six-month course. In making this change in the minimum level of English, the Government have also made concessions for degree students who may need to do some English before their main course and for low-risk government-sponsored students. This change targets the abuse of low-level English language courses, while safeguarding genuine student progression. Another English language change now requires sponsors of students studying on courses below degree level, excluding foundation degrees, to confirm that their students have a minimum standard of English. I make no apology for this: if students are to be taught in English, it is not unreasonable to require them to have a certain level to be able to follow their courses. By the summer, we will also require them to demonstrate this through a UKBA-approved secure test. This change was largely supported by institutions in the sector, many of which already require their students to demonstrate an English language ability. It simply levels the playing field and ensures that students can follow their courses. The other changes introduced on 3 March mean that, for example, the time that a student studying below degree level, excluding foundation degrees, is able to work has been halved to 10 hours during term time. This change reinforces tier 4 as a route for serious study and was supported by a significant proportion of the further education sector. The noble Earl, Lord Sandwich, touched on this point. The previous 20-hour limit sometimes distracted students and the sector rightly said that it was more important for them to concentrate on their studies to gain good grades. This was something that the education sector felt that it wanted. In addition, anyone studying a course for less than six months can no longer bring their dependants, and the dependants of those studying courses lower than undergraduate level, excluding the foundation degrees, are not permitted to work. These changes respond to the marked increase in such applications, since the introduction of tier 4, where we questioned whether the main purpose of the applicants was to study or to work. Neither the further education sector nor the English language sector felt that these changes would impact on them significantly, as they said that their students were typically younger, without families. Today we have also launched the new category of highly trusted sponsor for tier 4 sponsors. Tier 4 sponsors will require this status if they are to continue to offer adult student places on courses with work placements, where these are below degree level, and courses at the lowest academic level. It is right for the Government to limit such courses, which are highly attractive to economic migrants, to the most trustworthy and compliant sponsors. From the outset, this review was about putting in place measures to ensure that tier 4 has the necessary controls to drive out abuse. It is regrettable that the necessary speed of the review meant that a formal impact assessment could not be published to coincide with the initial changes. However, the review considered impact as an integral part of its work. As has been stated, a full impact assessment has today been provided to Printed Paper Office and is available on the UK Border Agency website. Notwithstanding the point made by the noble Lord, Lord Avebury, I have to say that I do not think that that was just because of this debate. However, I take his point about it being done rather later than one would like. In addition to the changes that I have outlined, UKBA is undertaking other operational measures to ensure the integrity of the system. Sponsors are required to be satisfied that a student is able to, and intends to, follow the course of study in question before they issue a confirmation for acceptance of studies. We have been working with the sector to ensure a thorough understanding of this and we are in the process of publishing clearer guidance on how sponsors can discharge these responsibilities. As of 22 January, UKBA has revoked 15, and suspended 145, sponsor licences. A number of the suspended institutions have been returned to the register after further investigation or where they have taken measures to tighten up their systems. Students sponsored by institutions that have been suspended from the register may continue with their studies at the institution, while new students coming to join the institution may still travel to the United Kingdom. In response to the increase in numbers of applications and pending the implementation of any recommendations stemming from the review, UKBA instigated a selective operational pause and is currently not accepting certain student applications in some areas of the world—parts of southern China and south Asia. UKBA will be working with colleagues in Ofsted and the existing accreditation bodies to ensure that the academic accreditation process that is crucial to the continuing effectiveness of the system is sufficiently robust. The noble Baroness, Lady Hamwee, talked about the complexity of the system. That was also touched on by the noble Lord, Lord Avebury, and others. I believe that the system is complex, so it is absolutely right that it is reviewed and looked at. There needs to be some rationalisation of the immigration system. Tier 4 is being reviewed all the time. We are always looking to make sure that it is working properly but, in the context of the rationalisation of the immigration system, I believe that it is correct that we should address that as well. I have been involved in this area—by which I mean that I am spokesman in the House for it—for only about two and a half years. It seems clear to me that, over the last 50 years or so, no one has been very clever about getting to grips with some of these immigration issues. Immigrants, of course, bring a great deal to this country, but the issue needs to be grasped. I believe that we are now getting to grips with it. In my last two and a half years here, I have been impressed with what has been going on, whether it is the new border force and what it is achieving, the points-based system or the e-Borders system. We are getting to grips with it. We have an enviable reputation as a provider of world-class education in this area. Those who seek to undermine the sector by abusing immigration controls do significant damage to its reputation. It is right that we should take prompt action to prevent that. The changes that I have outlined represent a targeted and balanced package that tightens up the student route while at the same time ensuring that genuine students are still welcome to come to the United Kingdom.