My Lords, before I turn to the issues raised in this group on international students—and as the noble Lord, Lord Watson, said, we are due to have a more substantive debate on the question of international students at a later point in the Bill—I want to address Amendment 26, proposed by the noble Lord, Lord Sutherland.
This Government are absolutely committed to ensuring the accountability and transparency of the OfS, and this Bill includes a range of provisions regarding the establishment and governance arrangements of the OfS, including placing a duty on the OfS to make an annual report on the performance of its functions and lay its annual accounts before Parliament. It is our firm expectation that the annual report will include details of the registration and de-registration of institutions, funding decisions made by the OfS and the operation of the Quality Assessment Committee. Furthermore, we will expect the OfS to make information available throughout the year on its website and through communications, in a similar way to how HEFCE and OFFA have operated.
However, we do not think that it would serve a useful purpose to be overly prescriptive about the content of the OfS annual report in the Bill. Comments
have been made to that effect this evening under different amendments. That could risk having unintended consequences of influencing the organisation’s priorities in a way which could limit its ability to act with appropriate levels of independence and respond to changing priorities. We acknowledge that our firm expectation is that any decisions on funding or registration will be included.
The noble Lord, Lord Sutherland, raised the big and important question about the assessment of quality for universities and providers, and how this would work. It is a very fair question. I refer him to the fact sheet on quality assurance published in the autumn. We will write further to him with further detail—and I offer a meeting for him to meet officials and my good self should that be wished.
I turn to the remaining amendments in this group. I am grateful for the opportunity to discuss the important issue of international students. This Government very much welcome the contribution that international students make to the UK—and passionate speeches were made by a number of noble Lords, including the noble Lord, Lord Broers, and particularly the noble Lord, Lord Bilimoria, and my noble friend Lord Waldegrave. The contribution is not only economic, as the noble Lord, Lord Watson, said; international students enrich our universities by bringing fresh ideas and new perspectives. There is no doubt that the Government recognise this.
I also reassure noble Lords, including the noble Lord, Lord Puttnam, that the Government are committed to ensuring that international students continue to come to the UK. There is no cap on the number of international students who can study here, nor is there any plan to introduce one. The UK is the world’s second most popular destination for international students, behind only the United States, and that is a proud achievement.
I recognise some of the anxieties that have been raised here. The noble Baroness, Lady Blackstone, raised an interesting point about the loss of Indian students, as she put it. I reassure her and the Committee that we continue to welcome high numbers of Indian students. India was our second-largest source country for international students in the academic year 2014-15. We are continuing to promote the UK’s great education offer with India—for example, through the new Study UK Discover You campaign. Home Office data show that around 90% of Indian students who applied for a tier 4 visa were granted one.
I shall address directly some points raised by the noble Lord, Lord Winston, who spoke about the concern about student numbers falling. The UK higher education sector is diverse, as he will know, and there are a number of factors affecting why a student chooses to study in the UK and at a particular institution. Not everyone will necessarily have the same experiences, but the UK remains a highly attractive destination for international students. This is backed up by some of the latest data, published on 1 December, which shows that university-sponsored visa applications have risen by 8% since 2011. University-sponsored visa applications to Russell group universities were 6% higher in the year ending September 2016. So we continue to punch above our weight internationally, attracting the most
overseas students after the US, with the UK getting 10% of the market share. I again emphasise that we welcome genuine students and we have no plans to cap the number who can come here to study.
Having said all that, it is important to give a balance to this debate; I am very aware that there are concerns around Brexit, which have been well explored and well discussed in this Chamber in Questions and debates—we are very aware of that. I understand the good intention of requiring the OfS to gather and publish information on international students. However, I am not convinced that this amendment is required. The Bill already includes provisions requiring the OfS to monitor and report on the financial health of the sector in the round. To do this, the OfS will need to have a clear picture of the types of students and the income that they bring to the sector. Also, Clause 8(1)(b) requires all registered providers to give the OfS such information as it needs to perform its functions. This will allow the OfS to gather information on EU and international student numbers and income generated, where this is required to enable the adequate monitoring of financial health. There is also a wide range of information on EU and international students already in the public domain through the Higher Education Statistics Agency. HESA already publishes detailed information about international student numbers along with a breakdown of which countries they are travelling from.
I turn to amendments 28, 48 and 465, proposed by my noble friend Lord Lucas. I respect the support that he has had this afternoon and I have been listening carefully to this particular debate. I recognise the need to have as much data as possible available on international students and I hope the detail that I have provided already today on the availability of this information reassures him. Let me turn to one specific part of my noble friend’s amendment. If I have looked carefully at his suggestion, details should be published of the percentage of total visa applications that are successful—or, if I may put it another way, the percentage of visas that are refused for each educational institution. Institutions that are tier 4 sponsors are required to undergo an annual basic compliance assessment to ensure that they are complying with their obligations. One element on which they are measured is the visa refusal rate for their prospective students. Should that level exceed 10%, an institution stands to lose its ability to sponsor international students, although discretion can always be exercised and specific circumstances taken into account.
We have deliberately avoided publishing details of the scores of those who pass the basic compliance assessment as this information is seen as commercially sensitive. Imagine for a moment that an institution has only very narrowly scraped over the line. The Home Office will recognise that it has passed and will not take any action against it, assuming there are no other causes for concern. But were it to become known that it was close to the line, its reputation might suffer. Prospective students might assume that there was a greater risk that it would fail next time round and therefore be more inclined to apply to an apparently more secure competitor. I am sure your Lordships will understand how damaging the release of these data
could be to affected institutions and recognise the potential implications, both reputationally and financially—and, by the way, the implications on international students coming to this country. I am sure that the institution concerned would want to take any action that it might consider appropriate away from the full glare of the public spotlight. That is why the information is regarded as commercially sensitive and why I believe it must remain so.
The Government also recognise the importance of clear and accessible advice regarding immigration policies. This is why the Home Office takes steps to ensure that key stakeholders are engaged and involved in any changes, whether formally through consultation or more informally when key stakeholders gather for the regular Home Office-led forum meetings. Changes to the Immigration Rules are communicated to all tier 4 sponsors when the rules are laid in Parliament. Where appropriate, changes to the Immigration Rules include transitional arrangements to allow for providers and students to prepare for the change in policy. DfE Ministers and officials regularly meet with sector representatives to ensure clear communication to help inform strategic planning.
On the issue of protecting and enhancing the contribution of international students, I am not persuaded that this amendment is necessary. The UK higher education institutions have proved extremely successful at attracting international students, which I alluded to earlier in my comments. That the UK is the second most popular place to study overseas in the world is testament to that. This Government also have a strong record of promoting UK higher education globally through the GREAT campaign and through our partners at the British Council.
I ask the noble Lord, Lord Sutherland, to withdraw his amendment and I hope that he will accept my explanations.
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