Universities across the UK have warned that proposed changes to student visa policies could worsen financial pressures on the higher education sector.
The warning follows reports that the UK government may target visa applicants from countries with higher asylum claim rates as part of a new immigration policy.
According to The Guardian, the planned restrictions are expected to be outlined in an upcoming immigration white paper. The government is reportedly focusing on applicants from countries including Nigeria, Pakistan, and Sri Lanka, whose nationals have previously entered the UK on study or work visas and later claimed asylum.
Concerns Over International Student Recruitment
Vivienne Stern, chief executive of Universities UK (UUK), which represents over 140 institutions, said that additional visa restrictions could further reduce income for universities.
“The immigration white paper is likely to restrict universities’ ability to recruit international students, and make a difficult financial situation facing the sector considerably worse,” Stern said.
Universities have already experienced a decline in international student numbers following earlier immigration changes, including limitations on bringing family members. Many international students pay higher fees than domestic students, making them a key source of income for institutions.
Government Efforts to Profile High-Risk Applicants
Reports indicate that the UK government is working with the National Crime Agency to identify applicants likely to remain in the country and seek asylum. Nearly 10,000 people who arrived in the UK on study or work visas were later found living in taxpayer-funded accommodation, such as hotels, during 2023.
Officials say the aim is to prevent misuse of the visa system. However, university leaders argue that such profiling could have unintended consequences for recruitment and reputation.
Tension Between Sector Funding and Government Scrutiny
In addition to immigration proposals, Stern also responded to reports that the government plans to increase scrutiny of university spending, particularly executive pay.
The Times reported that Education Secretary, Bridget Phillipson, is planning league tables that would “name and shame” institutions where high vice-chancellor pay coincides with poor student outcomes.
Meaning the government wants to create a list showing which universities pay their top leaders high salaries while their students do poorly after graduating. The goal is to publicly pressure these universities to improve student results and reduce unnecessary spending.
A government source said,
“A hard rain is going to fall on universities that continue to be so blasé about executive pay increases while letting down students.”
Stern defended current pay structures, arguing that university leaders manage complex organisations and that salaries are consistent with similar roles in other sectors.
“It is a bit frustrating that the government has chosen to throw out this story as a distraction, when there are some really serious challenges to deal with,” she said.
Survey Shows Widespread Cuts Across Universities
A recent UUK survey of 60 universities revealed the scale of financial strain across the sector. According to the findings:
- 25% have made compulsory redundancies.
- 49% have shut down individual courses.
- 18% have closed entire departments
- 19% have cut back on research investment.
Additionally, 60% of universities reported reducing repair and maintenance work, 51% cut catering budgets, and 46% scaled back IT spending.
Stern said these changes are partly due to the falling real value of domestic tuition fees and the decline in international student numbers. “We need government on the pitch and helping to stabilise universities, not engaging in distraction techniques,” she said.
Government Response Highlights Efficiency Goals
A Department for Education spokesperson said the government remains focused on long-term sustainability for the higher education sector. “The secretary of state has been clear that, as part of wider reform of the system, there must be a renewed drive for efficiency in the sector, including much less wasteful spending,” they said.
They added that the current government inherited a financially unstable system and is committed to fixing the foundations of higher education to deliver better outcomes for students. Full details of the proposed immigration white paper are expected later this month.
