Net benefits of Graduate Route visa scheme revealed in new study
August 2024 - Education
The net benefits of the Graduate Route visa scheme have been revealed in a new study: The research, undertaken by London Economics, shows significant benefits to the UK economy in 2022-23 driven by over 56,000 international graduates applying to stay on and work in the UK under the Graduate Route visa scheme.
The Graduate Route visa programme enables international students, and their dependents, to continue to live and work in the UK for up to two years after graduating from a UK university. Research by a leading economic and policy consultancy has found that, in the academic year 2022-23, around 66,400 people held these visas (including 9,950 visas held by the graduates’ dependants).
London Economics (LE) was commissioned by a partnership of education bodies (including the Higher Education Policy Institute and the National Union of Students) to gather evidence and analyse the impact of the program on the UK economy as part of a review of current immigration policy carried out by the Home Office. Their research showed a substantial contribution to the UK economy, bringing an estimated £70 million net benefit to the UK economy in the 2022-23 tax year (equating to a net benefit of £1,240 per international graduate). The gross benefit was estimated to be around £588 million (£10,410 per visa holder). However, despite these benefits, the UK government removed the overseas students’ ability to bring in dependants on their own visa, in January 2024, as part of a range of measures designed to reduce net migration figures.
It was noted in the study that the research was undertaken within a very tight timescale (March to May 2024), so the scope of their cost / benefit analysis was limited to economic measures (including Income Tax, NI contributions, public health and housing costs). The research noted, but did not factor in, wider impacts, such as increased income to UK universities which arises from attracting international students to study in the UK.
Sign up to our newsletter to receive free insights from your sector...
Support Us...
We hope that you have found this article useful. This section is freely available for all to use. Please help support it by liking us or following us on our social media platforms:
