UK could lose $3.8bn from tougher student visa rules

Visa target ... private colleges must achieve recognised accreditation before receiving international students. Photograph: Martin Argles/The Guardian

The British economy could lose up to $3.8bn as tougher student visa rules introduced from last month start to take effect, according to a report commissioned by the minister responsible for the visa changes,Damian Green.

An impact assessment report by the Home Office says the new policy will deter bogus students and improve compliance, but the expected 230,000 reduction in the numbers of applicants for the Tier 4 student visa from outside the EU over the next four years will have wider costs.

The report estimates that income from fees will be cut by $270m over four years, while up to $3.2bn will be lost because students enrolled at private colleges have lost their right to work part-time and contribute to the economy.

Private English language training providers, which had 21,000 Tier 4 visa applicants in 2010, are likely to see applicants drop by 13,000 in 2014, with a net loss $4.8m.

The report estimates that the decision to raise the minimum level of English proficiency for students from non-English-speaking countries who want to study on degree courses will cut applicants by 11,000 per year.

Meanwhile, lobbying by the British Council and the English UK trade association to have the Accreditation UK inspection scheme for private English language programmes accepted by the Home Office for Tier 4 visa applications has failed.

Accreditation UK was not included on a final list of recognised accrediting bodies published by the UK Border Agency last month. Institutions currently approved by Accreditation UK that want to continue to enrol Tier 4 students will need to gain approved accreditation by the end of 2012.

Source; The Guardian