Tier 4 Fears - CentreForum

Summary

Tier 4 Fears:

The coalition government is committed to increasing the diversity of higher education provision. The universities minister, David Willetts, has stated that it is “healthy to have a vibrant private sector working alongside our more traditional universities”, and that “a diverse range of higher education providers helps widen access, focuses attention on teaching quality and promotes innovative learning methods”

Why government student visa proposals are unfair

However, current Home Office proposals to remove the working rights of international students at private higher education providers will mean that independent colleges are put at a major disadvantage in relation to public institutions. Under the proposals a two-tier system will be created whereby students studying for a universityvalidated degree, designed by a UK university but taught at a private college, will not be able to work part-time to support their studies. In contrast, students studying an identical degree at the parent university will be able to work. Private institutions looking to attract international students will therefore be competing on an uneven playing field with public institutions.

Mark Lloyd with Chris Nicholson

June 2011

The Home Office proposals risk damaging the independent HE sector disproportionately at a time when it is most needed to help the UK expand higher education and make the most of the country’s position as an export earner from the provision of high quality degrees. It is in our view wrong that immigration law should discriminate between educational institutions based on whether they are publicly or privately owned; the law should treat institutions with comparable records on compliance equally. With the government looking to private providers to help the UK create a more flexible HE sector, the proposed restrictions will be counter-productive. We recognise that the government is seeking to reduce immigration substantially and quickly. A relatively small change in the government’s proposals would go a significant way to offsetting the adverse effect of the discrimination between public and private institutions. We propose that non-EU students studying degree courses at private colleges should have the right to work part-time as long as the validating university is confident enough in the quality of their partner college to take direct responsibility for students by sponsoring their visa applications under the university name. This would mean those colleges that

David Willetts cited in ‘Willetts supports BPP in becoming a university college’, HM Central Office of Information News Distribution Service, 26th July 2010

universities trust to provide degrees on their behalf could still attract the full spectrum of the international student market. Universities will be able to continue to increase the flexibility and expand the scope of their degree courses with the most suitable providers.

Introduction The UK’s HE sector attracts many students from around the world to study both at public and private universities and at the numerous independent colleges that now offer degree courses tailored to international students’ needs. There are three general types of HE provider: • Private universities which have the same degree-awarding powers as public universities. The University of Buckingham and BPP University College are examples of such providers. •

Private HE colleges that run degree

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schemes designed ‘in-house’ which are then validated and certified by a university. • Private HE colleges that teach degree schemes in collaborative arrangements with the accrediting university where the college delivers a course identical in content to the degree as it is taught at the university. Private educational institutions in general have come under fire for their role in facilitating ‘bogus’ immigration by individuals entering the UK on Tier 4 student visas and then remaining in the UK to work rather than study. In March 2011 the Home Secretary, Theresa May, announced the government’s plans to overhaul the student visa system with a view to reducing the number of bogus students using this route to enter the country. In an opinion piece for The Sun newspaper she stated: “We need a system where only the very brightest and the best can come to Britain. If they are coming here to study then they should be studying, not working. They should be going to universities or proper colleges, not backstreet diploma factories that, far from selling an education, are actually selling a visa to Britain. And they should be going home at the end of their courses.” As part of the overhaul the government has proposed raising the language proficiency requirements for foreign students entering the UK on a Tier 4 entitlement and changing the law so that “students at universities and publicly funded further education colleges will retain their current work rights, but all other students will have no right to work.” The government also proposes to restrict work placements in courses outside universities, limiting the courses that international students can take. In a previous CentreForum publication, ‘Pathway to Prosperity’ (February 2011), we examined proposals to raise the language requirement for student entries into the UK beyond the level that many genuine students possess. We argued that strengthening sponsorship requirements on entry visas would be a less disruptive way of hardening the system against abuse. This paper makes an assessment of government proposals that have been

Tom Whitehead, ‘Bogus colleges are ‘Achilles Heel’ of immigration system, says Phil Woolas’, The Telegraph, 31st March 2009 Home Office UK Border Agency News Release, ‘Government outlines overhaul of Student Immigration System’, 22nd March 2011 Theresa May, ‘I’m axing bogus diploma factories’, The Sun, 22nd March 2011 Home Office UK Border Agency News Release, ‘Government outlines overhaul of Student Immigration System’, 22nd March 2011

announced since our last publication, arguing that several of the planned measures will indeed strengthen sponsorship and oversight of student visa entries and should be welcomed. However, proposals to remove working rights for international students studying degrees at reputable providers with ‘highly trusted sponsor’ (HTS) status are a measure too far and largely unnecessary. We provide an overview of the current student visa system, how it has been improved and what flaws remain, before considering current government proposals. We will then look at how current plans will negatively affect private colleges to the detriment of the wider HE sector and put forward our own proposals on how the government reforms could be improved.

The student visa system – shortcomings and reform Tier 4 visas (i.e. visas intended for students and requiring sponsorship from an educational establishment) currently make up around three quarters of all visa entries into the UK; some 285,000 entries in 2010. Under Tier 4, students have been allowed to work for up to 20 hours during the academic term and full-time during holidays. Students’ dependants have also been allowed to join them and work in the UK. Problems have arisen with ‘sham’ providers masquerading as genuine colleges offering visas for cash, sending students on thinlyveiled ‘work placements’ or providing no teaching whatsoever. UK Border Agency (UKBA) caseworkers have encountered students who arrived in the UK unaware of the nature of the course they were proposing to study, its location and requirements, or how such a qualification would benefit them, including instances where hospitality students believed they would qualify as doctors. In the past few years several sets of reforms have been made to the student visa regime with the aim of eliminating bogus colleges and language schools and making it easier for the UKBA to identify and prevent fraudulent immigration. Prior to 2009 private institutions without any external accreditation as educational establishments were able to get on the Register of Education Providers (REP) and qualify to sponsor visas by providing the following: • Evidence of their registration as a legal business with Companies House;

Home Affairs Select Committee Seventh Report of Session 2010-11, Volume I, 15th March 2011 , p6 Home Office UK Border Agency: ‘The Student Immigration System: A Consultation’, December 2010, p9

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• Details qualifications;

of

their

staff

and

• Floor plans to show classrooms and other facilities; • A copy of their prospectus to give an indication of the teaching they provided When the Home Office carried out inspections of colleges in 2007, ahead of registration on the REP, 25 per cent (300 out of 1200 applications) were found not to be genuine, and a further 69 colleges were removed from the Register following visits from UKBA compliance officers. In 2009 the Labour government attempted to tighten immigration controls by introducing the Points Based System (PBS) for visas which remains today. Under the PBS nonEU nationals wishing to study in the UK: • have to be accepted by an accredited sponsoring education institution to study on a qualifying course; • must obtain an entry clearance visa by showing that they meet the points requirements for a Tier 4 visa; and • must demonstrate that they have sufficient funds to support themselves and any dependants in the UK. Currently some 2300 institutions are listed on the UKBA’s register of Tier 4 sponsors. These institutions are rated as either ‘A’, ‘B’ or (since 2010) ‘Highly Trusted Sponsor’. When institutions first apply to be sponsors they are given an ‘A’ or ‘B’ rating, where a ‘B’ rating indicates that the UKBA believes that an institution could pose a risk to immigration control or that it does not have all the correct systems in place to ensure its compliance with immigration rules.10 Brated sponsors must follow a sponsorship action plan designed to help them become A-rated, or they risk losing their licence. Since 2010 only those institutions that achieve the newly-introduced rating of ‘Highly Trusted Sponsor’ are allowed to offer courses at below NQF level 3 and those courses below degree level that include a work placement. This measure was introduced to clean up provision at the lower end of the qualification spectrum. There are currently 791 Highly Trusted Sponsor institutions.11 The changes made in 2009 and 2010 by the Labour government have significantly

10

11

UK Border Agency, Accreditation of Private Educational Institutions Involved in Recruiting International Students under the Points Based System, Regulatory Impact Assessment, July 2007 Sarah Mulley and Alice Sachrajda, ‘Student Migration in the UK’, Institute for Public Policy Research Report, February 2011, p5 Some institutions are rated ‘B’ as an interim measure where UKBA does not yet have sufficient information on the institution to confirm its suitability. Home Affairs Select Committee Seventh Report of Session 2010-11, Volume I, 15th March 2011, p6

improved the situation vis-á-vis bogus colleges and language schools offering lower level courses; 13,000 institutions that were previously able legally to sponsor Tier 4 visas were dropped from the list.12 The problems that remain with the above regime, inherited by the coalition government and currently being reviewed, largely relate to oversight and standards rather than deep structural flaws. One of them relates to the way in which private institutions are approved as sponsors of student visas. At present there is a total of five bodies able to designate sponsors, four of which are private bodies.13 In ‘Pathway to Prosperity’ we proposed streamlining these organisations into a single body, as a proliferation of regimes had led to a ‘race to the bottom’ where educational institutions simply used the body perceived to be the least exacting for accreditation. Although previous reforms tackled abuse in lower level qualifications by ensuring only ‘highly trusted sponsors’ could sponsor visas for courses under NQF level 3, many organisations with ‘B’ rating can still offer courses above level 3, meaning colleges with poor records can continue to sponsor visas for some courses. There has also been a lack of co-ordination between UKBA and educational establishments which could be improved with requirements for sponsors to share registration and student progression documents with the Border Agency, leading to some bogus students ‘slipping through the net’.

The Problem Facts and and The Problem with with Fact Figures Figures

In tackling the issue of immigration In tackling the issue of immigration linked to linked to student visas it is important not student visas it is important not to overstate to overstate the contribution of student the contribution of student visa entrants to visa entrants to longer term settlement longer term settlement in the UK. Recent in the UK. Recent evidence suggests that evidence suggests that a relatively small a relatively small proportion of student proportion of student migrants – only around migrants - only around 20 per cent 20 per cent – stay in the UK for five years or stay in the UK for five years or more (of more (of whom some are still studying), and whom some are still studying), and that that an even smaller proportion (less than an even small proportion (less than 10 10 per cent) settle in the UK permanently. per cent) settle in the UK permanently. The vast majority of international students The vast majority of international stay in the UK only temporarily.14 students stay in the UK temporarily.14 Part of the problem with making policy Part of the problem with making policy on student visas is that the collection of on student visas is that the collection of statistics has been patchy and flawed. statistics has been patchy and flawed. Evidence suggests that the data on which Evidence suggests that the idea on the net migration figures are based, the which the net migration figures are International Passenger Survey, is likely to cont. overleaf 12

13 14

Sean Coughlan, ’13,500 Fewer Colleges for Visas’, BBC News Website, 12th May 2009, see also UKBA Report: Impact Assessment of changes to Tier 4 following the Prime Minister’s review of the student immigration route, 22nd March 2010 House of Commons Home Affairs Committee: Bogus Colleges, Eleventh Report of Session 200809, 14th July 2009, p3 Sarah Mulley and Alice Sachrajda, ‘Student Migration in the UK’, Institute for Public Policy Research Report, February 2011


over-inflate the figure for students who based,in the International Passenger remain country. The IPS surveys 0.2% Survey, is likely to over-inflate the to of travellers and is therefore subject figure forsampling students whoThe remain in significant errors. Migration the country. The IPS surveys 0.2% of Advisory Committee Report “Limits on travellers (November and is therefore subject Migration” 2010) observes that to significant sampling errors. the outflow of students completingThe their Migration Report course and Advisory returningCommittee home as measured Migration”less (November by“Limits the IPSon is materially than their 2010) observes 15 that the outflow of own estimates. Thus official statistical students completing their course and to evidence is questionable and is likely returning home as measured by significantly over-state net migrationthe and IPS is materially lessstudent than their own the contribution of the route. 15 estimates. Thus official statistical Gaining solidisfigures for non-EUand students evidence questionable is who study specifically atover-state private sectors likely to significantly net colleges has and beenthe compounded byof a lack migration contribution the of a student central authority to collect these figures. route. The Higher Education Statistics Authority Gaining solidto survey figures independent for non-EUFE has attempted students who study specifically and HE providers in the UK but has at had privateresponse sector and colleges has been limited the figures do not compounded byof ainternational lack of a central delineate number students authority to collect these figures. at institutions.16 The Higher Education Statistics The government’s proposals to Authority has attempted to require surveyall institutions sponsoring Tierproviders 4 visa entries independent FE and HE in tothe be UK accredited an limited officially-approved but hasby had response accreditation bodydo should go somethe way and the figures not delineate towards overall numbers numbermaking of international studentsmore at measurable. However, the government institutions.16 should move more quickly towards The government’s proposals to putting in place suitable exit checks require all institutions sponsoring Tier for immigrants leaving the UK, as was 4 visa entries be accredited by an in promised in thetocoalition agreement, officially-approved accreditation order better to understand the netbody effect some way ofshould studentgomigration to towards the UK.17making overall numbers more measurable. However, the government should move more quickly towards putting in place suitable exit checks for immigrants leaving the UK, as was promised in the coalition agreement, in order better to understand the net effect of student migration to the UK.17

thousands’18, Tier 4 working rights have been drastically curtailed with the aim of preventing economic migrants from using the Tier 4 route to enter the UK to work, rather than study.

Government proposals to further strengthen the Tier 4 Visa System

• Closure of Tier 1 (Post-study work) route, which allows students 2 years to seek employment after their course ends. Only graduates who have an offer of a skilled job from a sponsoring employer under Tier 2 of the points-based system will be able to stay to work.19

Some of the remaining problems in the student immigration system are addressed in the Home Secretary’s new proposals to strengthen oversight and accreditation. Amongst these proposals are tougher entrance criteria, limits on work entitlements and the closure of the Tier 1 post-study work route. In moves designed to augment the coalition’s wider intentions to bring net migration into ‘the tens of thousands, not hundreds of 15 16 17

See: Home Affairs Select Committee: Student Visas, Seventh Report of Session 2010-11, Volume I, 15th March 2011 HESA, Survey of private and for-profit providers of Higher Education in the UK 2009/10 – Provisional figures, 14th April 2011 HM Government, The Coalition: Our programme for Government, May 2010, p21

The main changes are as follows: • From April 2012, any institution wanting to sponsor students will need to be classed as a Highly Trusted sponsor, and will need to become accredited by a statutory education inspection body by the end of 2012. • Private accreditation bodies will lose the right to designate educational institutions as suitable sponsors for Tier 4 visas. In future only officially-designated accreditation bodies will be able to do so, amounting to a significant strengthening of oversight. • Students coming to study at degree level will need to speak, read and write English at an ‘upper intermediate’ (B2) level, rather than the current ‘lower intermediate’ (B1) requirement. • Students at universities and publicly funded further education colleges will retain their current work rights, but all other students will have no right to work. Further restrictions to be placed on work placements in courses outside universities. • Only postgraduate students at universities and government-sponsored students will be able to bring their dependents. At present, all students on longer courses can bring their dependents. • New limits on the overall time that can be spent on a student visa; 3 years at lower levels and 5 years at higher levels. At present, there is no time limit for study at or above degree level.

We support these proposals to the extent that they will make fraudulent immigration through the Tier 4 route more difficult. Requiring all institutions sponsoring Tier 4 visas to meet HTS standards by April 2012 should filter out providers who fail to vet applicants sufficiently before sponsoring their visas. Likewise, limiting accreditation so that only officially designated bodies such as Ofsted or QAA can award an institution HTS status will ensure greater 18 19

David Cameron, speech to Conservative Party members, Hampshire, 13th April 2011 Home Office UK Border Agency News Release, ‘Government outlines overhaul of Student Immigration System’, 22nd March 2011

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transparency. However, restricting the working rights of international students at all private institutions, will damage a wide spectrum of quality independent higher education providers whilst doing little to contribute to immigration control. Under the proposed scheme an international student studying at the University of Sunderland, for instance, would be able to work part-time during their degree, whilst an international student studying an identical degree course, designed and validated by the University of Sunderland, but run through one of the university’s independent partner colleges would not be allowed to work at all. This is likely to drive international students away from private providers (many of whom specifically design their courses for international students) and towards universities. Indeed, if it simply leads to diverting students from private to public institutions this may not, in the long run, have any net effect on the number of students coming to the UK with working rights.

Striking a balance: retaining a quality independent HE sector The Higher Education Statistics Authority’s most recent survey found at least 38,000 students in the UK (both home and international) study higher level qualifications with private providers21 and figures from Universities UK suggest that around two thirds of all UK universities have some form of partnership arrangement with such organisations.22 The major problem with the proposed reforms is that the blanket restriction on international students’ working rights at private colleges penalises all such colleges, including reputable institutions that work closely with universities to provide high quality courses. Many HE colleges design and teach their own HE courses which are externally validated by a university in an arrangement known as ‘validated provision’. Others provide so-called ‘franchised’ degrees that are designed, validated and marketed by a university, which then collaborates with a partner college to provide a university-style degree, but at an off-campus location. A university will typically receive about £500 per student per annum for validating degrees at private colleges, and around £2000 per student per annum from tuition fees on franchised courses.There are around 70 UK universities with such contracts linked to 120 private colleges which employ around 5,000 staff.23

EThames Graduate School is an example of a private institution that aims to attract international students with universityaccredited courses by offering a high standard of facilities and competitive fees

Whilst there has been a problem with bogus colleges taking advantage of the Tier 4 system, there are also many private sector colleges that run UK degree courses to a high standard via closely monitored collaborative arrangements with universities. These institutions often offer flexible learning options, such as intensive 2-year degree courses, specialist subjects, and a high number of contact hours at competitive prices. These providers are likely to be the vanguard of the private HE providers which David Willetts is looking to see emerge to help drive down fee levels for domestic students, creating a “diverse and dynamic higher education sector with a range of providers offering high quality and innovative teaching, wider choice and good value for students.”20 Handicapping their current business with international students for no good reason will be both counterproductive and unfair. 20

BIS spokesperson, cited in Graeme Paton, ‘Private universities ‘need tougher regulation’’, The Telegraph, 24th May 2011

These arrangements are particularly useful for universities outside large cities looking to attract international students who want to study a UK degree but would prefer to study in places like London rather than in out-oftown campuses or less metropolitan areas. Unlike creating new private universities with their own degree-awarding powers, validated and franchised partnerships can be initiated relatively quickly and are highly flexible. Such partnerships offer perhaps the best example of how private HE could rapidly be integrated into the university system in coming years. All collaborative arrangements with UK universities are subject to stringent quality assurance processes (under QAA guidelines) before they can be established. These include measures to ensure that partner colleges meet due diligence requirements, have adequate facilities and a high calibre of staff, and are able to match the teaching standards of the university to which they are linked. Standards are maintained in partner 21 22 23

HESA, Survey of private and for-profit providers of Higher Education in the UK 2009/10 – Provisional figures, 14th April 2011 Universities UK Research Report, ‘The growth of private and for-profit higher education providers in the UK’, March 2010 BAC Estimates, May 2011 (unpublished)


colleges through annual monitoring visits and reviews. At a recent national meeting of the Association of Independent Higher Education Providers both David Willetts and Jeremy Oppenheim of the UK Border Agency affirmed their commitment to the fair treatment of independent higher education providers with Oppenheim stating that independent institutions would be treated equally in terms of visas for students.24 Speaking recently about the visa reforms David Willetts said: “A key objective of this review is to get rid of abuse in the student migration system – dealing with those organisations that bring in individuals who are not genuine students but are only interested in getting into the UK. We want to ensure that in dealing with that abuse, we don’t inadvertently make the UK less attractive to genuine students wanting to come and study at reputable institutions.”25 Willetts also pledged to make it easier for private HE providers to achieve full university status along the lines of the University of Buckingham and BPP University College.26 Unfortunately, despite these assurances the proposed immigration controls threaten the system of collaborative partnership between universities and private colleges. The government can still reduce the number of students entering the UK with working rights significantly to meet its aims on immigration whilst allowing those colleges who only admit the ‘brightest and best’ to continue to attract students who wish to work part-time. The foundations for a well-structured regime of sponsorship and oversight are already in place (allowing high quality private HE providers to compete on equal terms requires only minor changes to the proposals).

Recommendations Conclusions and The government has proposed changes to Recommendations

Tier 4 government rules that will strengthen regime The has proposedthe changes considerably. Measures to streamline to Tier 4 rules that will strengthen the accreditation and ensure Measures all institutions regime considerably. to sponsoring Tier 4 visa entries achieve HTS streamline accreditation and ensure status will reducesponsoring significantly scope all institutions Tierthe 4 visa for abuse and go much of the way towards entries achieve HTS status will reduce plugging remaining gaps for in oversight. significantly the scope abuse and However, thetheblanket restrictions go much of way towards pluggingon working rights in in private institutions will remaining gaps oversight. mean that international students on who However, the blanket HE restrictions wish to work part-time will be unable working rights in private institutionsto do so if they choose to study their degree 24 25 26

David Willetts and Jeremy Oppenheim, addresses to AIHEP National Conference, March 2010 David Willetts, speech to Universities UK Spring Conference, Woburn House, London, 25th February 2011 David Willetts and Jeremy Oppenheim, addresses to AIHEP National Conference, March 2010

at a private college rather than a public will mean that international HE students college or university. This is harmful both who wish to work part-time will be to the diversity of the sector and to the unable to do so if they choose to study students who will ultimately pay more for their degree at a private college rather their qualifications at public institutions than a public college or university. (see appendix), thus deterring potential This is harmful both to the diversity students from studying in the UK. of the sector and to the students who Inwill order to ensure onlyforgenuine ultimately paythat more their students are enrolled oninstitutions degree courses qualifications at public (see atappendix), HE colleges propose potential adjusting thuswedeterring government plans to allowinmore flexibility. students from studying the UK. Rather than the private sector college In order to ensure that only genuine sponsoring the Tier 4 visa application as at students are enrolled on degree present, the validating university should courses at HE colleges we propose be able to take direct responsibility for adjusting government plans to allow the student’s entry to the UK by issuing more flexibility. Rather than the private a certificate of sponsorship under the sector college sponsoring the Tier university name. 4 visa application as at present, the Tier 4 students on HE courses the validating university should where be able university awardsresponsibility and oversees for a degree to take direct the taught at a entry privatetosector partner college student’s the UK by issuing should be given same working a certificate of the sponsorship underrights the asuniversity those Tier 4 students doing a similar name. or identical degree at the university Tier 4 students on HE courses where (as both groups are admitted to the UK the university awards and oversees under the same sponsor). Tier 4 degree a degree taught at a private sector students would then be allowed to work partner college should be given the for up to 20 hours a week during their same working rights as those Tier 4 studies provided they were taught at, and students doing a similar or identical sponsored by, a highly trusted college and degree at the university (as both groups university respectively. are admitted to the UK under the same This would universities more sponsor). Tiermake 4 degree students would accountable for the then be allowed to students work for who up tostudy 20 their degree courses and simultaneously hours a week during their studies more selective colleges they provided they about were the taught at, and choose to by, form partnerships with. sponsored a highly trusted college Non-compliant students and colleges and university respectively. would risk the university’s own licence This would make universities more to sponsor Tier 4 visas. Under current accountable for the students who government proposals both the university study their degree courses and and the private sector partner college simultaneously more selective about would be required to gain HTS status the colleges they choose to form within 12 months, and both would need partnerships with. Non-compliant accreditation from an approved body thus students and colleges would risk the greatly reducing the risk of poor quality university’s own licence to sponsor institutions offering Tier 4 visas with Tier 4 visas. Under current government working rights. proposals both the university and the If private the government consider that would further sector partner college restrictions are limitations could be required to needed gain HTS status within be12placed on the number partnerships months, and both ofwould need a accreditation given organisation maintain: from an can approved bodyA university could have, the forrisk instance, thus greatly reducing of poor a maximum of two partners sponsored, and quality institutions offering Tier 4 visas a with private provider could have a maximum working rights. of two university partners. In the short If the government consider that further term this would greatly reduce the number restrictions are needed limitations of students entering the UK with working could be placed on the number of rights as universities such as Middlesex, partnerships a given organisation can which has collaborated agreements with maintain: A university could have, for 21 colleges27, would need to re-assess instance, a maximum of two partners their model and look to expand their sponsored, and a private provider could programmes through a handful of close have a maximum of two university partners. partners. In the short term this would Adjusting government proposals to allow greatly reduce the number of students 27

BAC Estimates, May 2011 (unpublished)

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Tier 4 visa applicants studying universityentering the UK with working rights as validated degrees the same working rights universities such as Middlesex, which as those studying at parent-universities has collaborated agreements with 21 is a minor change that could have major colleges27, would need to re-assess benefits. Private sector HE colleges can offer their model and look to expand their traditional universities an outlet to increase programmes through a handful of close their revenues through collaborative partners. arrangements whilst attracting greater Adjustingof international government students proposalsto to numbers the allow Tier 4 flexible visa applicants studying UK by offering learning options and university-validated degrees same low-cost university degrees. Thethe availability as will thosealso studying ofworking cheaperrights degrees serve at the parent-universities is a forwards minor change domestic market going as the that could seeks have major Private government to openbenefits. up the HE sector HE colleges can offer traditional tosector greater competition. universities an outlet to increase On estimates provided by the British their revenues through collaborative Accreditation Council, our proposals would arrangements whilst attracting greater mean only around 8,000 non-EU students numbers of international students to entering the UK for degree courses would the UK by offering flexible learning currently be eligible for working rights at options and low-cost university degrees. HTS institutions. This is a relatively small The availability of cheaper degrees will number, but a group that is economically also serve the domestic market going vital for supporting the jobs of the academic forwards as the government seeks staff who teach in private HE colleges. to open up the HE sector to greater Over time, as measures to cleanse the HE competition. system of bogus providers take effect, we On estimates provided by the British argue that private providers who are able to Accreditation Council, our proposals establish their reliability through achieving would mean only around 8,000 nonand maintaining HTS status over a period of EU students entering the UK for degree years should be able to sponsor visas with courses would currently be eligible for working rights. A system that discriminates working rights at HTS institutions. This against such institutions simply because is a relatively small number, but a group they are privately owned is not defensible that is economically vital for supporting in the long run. the jobs of the academic staff who teach If in the government wishes to create a more private HE colleges. flexible, diverse and competitive HE sector Over time, as measures to cleanse the HE with the involvement of private providers system of bogus providers take effect, it must allow those providers to attract we argue that private providers who are students on equal terms with their public able to establish their reliability through sector counterparts and avoid unnecessary achieving and maintaining HTS status and counterproductive restrictions. over a period of years should be able to sponsor visas with working rights. A system that discriminates against such institutions simply because they are privately owned is not defensible in the long run. If the government wishes to create a more flexible, diverse and competitive HE sector with the involvement of private providers it must allow those providers to attract students on equal terms with their public sector counterparts and avoid unnecessary and counterproductive restrictions.

Appendix: Competing on Price and Quality There is a growing number of high quality private sector institutions which aim to recreate the university teaching experience for international students at a lower cost than many public organisations. Externally accredited graduate schools and HE colleges are commonly offering international

students diplomas and bachelor’s degrees for around £5,000 - £6000 per year, and MBAs for around £8,000 – £10,000. When this is compared to average fees at universities of around £11,500 per annum for non-EU undergraduates it is easy to see why international students may be attracted to private institutions able to offer university-accredited degrees.28 Currently such places are largely limited to professional qualifications in areas like business and finance; management; computer sciences and IT; fashion design; hospitality; and travel and tourism management. However, with some colleges gaining a growing reputation for high quality teaching and facilities, in the future private sector HE providers may begin to offer competitive alternatives to public universities in more traditional areas like the social sciences, law, humanities and physical sciences. Private HE providers often offer more flexible learning options and shorter courses with fewer holidays than traditional universities. This can be particularly useful for international students. EThames Graduate School, for instance, provides four 10-week terms in a year for undergraduate courses, rather than the traditional three terms at most public universities and colleges. This allows EThames to complete a full bachelor’s degree in around 2 years and 3 months – a significant reduction in the time spent in the UK for international students. Although many private sector HE providers currently rely on foreign students for their income, if such providers are allowed to expand under the Higher Education Minister’s plans for HE they would be able to offer competitive alternatives to UK degree students looking for flexible forms of study, distance-learning and potentially lower fees – an issue that will be addressed in Gill Wyness’ forthcoming CentreForum paper on HE and marketisation. However, with many private HE colleges fearing business failure in the next 1218 months under current work restriction proposals there may not be enough providers left to see the government’s plans for a diverse HE environment come to fruition. Achieving authorisation for new private universities can take up to four years, whereas the collaborative partnerships between universities and private sector HE providers are flexible, able to soak up excess demand in the HE market, and fit in with the government’s vision for higher education and public service provision more generally.

28

Universities UK, International student tuition fees survey results, 2010/11


About the authors Mark Lloyd is a researcher at CentreForum. He previously worked for Cheshire Police and studied PPE at Manchester University and Security Studies at Aberystwyth University. Chris Nicholson, Director and Chief Executive of CentreForum. Formerly, he was a government economist and Partner and Head of the Public Sector practice at KPMG.

Acknowledgements We are grateful to StudyUK for sponsoring this research and for their advice and comments on the draft report.

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