UK graduate visa cut to 18 months, amid proposal for new levy on foreign student fees  

The measure is part of a wide-ranging immigration white paper aimed at reducing net migration and shifting the focus of the immigration system toward domestic skills development.

The 82-page document, Restoring Control over the Immigration System, outlines new restrictions affecting international students, their sponsoring institutions, and employers.

The proposals form part of Prime Minister Keir Starmer’s broader effort to lower migration levels and rebuild confidence in what he described as a “failed system.” 

The white paper also signals the government’s intention to explore the introduction of a levy on higher education institutions that admit international students.

“We will reduce the ability for Graduates to remain in the UK after their studies to a period of 18 months.  

“ We will explore introducing a levy on higher education provider income from international students, to be reinvested into skills.” 

While no final decision has been reached, a 6% levy on international student tuition fees is being modeled, with potential proceeds earmarked for reinvestment in domestic higher education and workforce training. Final details are expected in the Autumn budget.

“Our system will no longer rely on overseas labour or fee income to paper over the cracks in domestic training and education,” said Home Secretary Rachel Reeves in a statement accompanying the white paper’s release.

Compliance requirements for universities that sponsor international students

Among the most controversial elements is a significant tightening of compliance requirements for universities that sponsor international students.

The reforms extend beyond the education sector. Employers seeking to hire skilled foreign workers will face new obligations to invest in domestic training, as the government moves to curb dependence on overseas talent. A newly formed Labour Market Evidence Group will advise on areas of genuine skills shortages, using data-driven analysis to shape future immigration policy.

Net migration to the U.K. has more than quadrupled since 2019, driven in part by rising numbers of international students and dependents. Government officials argue that tighter controls and increased enforcement will reduce abuse of the system and better align immigration with national interests.

Starmer, who has faced growing political pressure to act on migration, declared that “enforcement will be tougher than ever and migration numbers will fall.” 

With these sweeping changes, the U.K. is poised to fundamentally reshape the role of international students and foreign workers in its economy, signaling a pivot away from global recruitment and toward homegrown talent development.