Ceredigion Preseli MP Ben Lake, has warned that the UK Government’s proposed changes to the graduate visa route and six per cent levy on university income from international student fees could severely harm universities across Wales and the UK, calling the plans “reckless” and a “blow to Wales and the UK’s economic prospects”.

Speaking in the House of Commons on Monday, Mr Lake challenged the Home Secretary, Yvette Cooper MP, on the financial implications of the policy, highlighting that the Migration Advisory Committee had previously warned that restricting the graduate visa route could place universities at financial risk under the current funding model.

In response, the Home Secretary confirmed that international graduates will still be able to stay in the UK for 18 months post-graduation, but would need to secure graduate-level jobs to remain longer under the skilled worker visa.

However, Mr Lake said the response from the Home Secretary “reveals a lack of coherence” in government policy and fails to acknowledge the vital role that international students and staff play in sustaining higher education.

Speaking in the House of Commons, Mr Lake said: “The Home Secretary will be aware of the funding crisis that affects many of the UK’s universities.

“Last year, when the Migration Advisory Committee reviewed the graduate visa route, it concluded that it should be retained, stating, ‘under the current higher education funding model, closure or additional restrictions could put many universities at financial risk.’

“What is the Home Secretary’s assessment of the impact that these changes will have on the financial sustainability of our universities?”

The Home Secretary, Yvette Cooper MP responded: “Where universities are already meeting high standards of compliance, as most of them are, that is very welcome, but those that do not currently meet them will need to raise their compliance standards to ensure that we have a proper, robust system.

“The graduate visa will enable people to stay on for the unrestricted 18 months, but if they want to stay longer they will need to be contributing in graduate jobs.

“Too often people have stayed without doing that, although they have degrees and should therefore be obtaining graduate jobs, which they can also do through the skilled worker visa.”

Mr Lake said the response “reveals a lack of coherence in UK Government policy on higher education, and a troubling disregard of the financial difficulties so many universities are facing.”

“The contribution that international students – and staff – make to higher education should not be overlooked, and for many universities in Wales the income raised from the fees levied on international students help sustain course provision for UK-domiciled students,” he said.

“Reducing the graduate visa route and imposing a six per cent levy on university income from international student fees without first addressing the broken funding model is a reckless move.

“It will result in job losses, course closures, and would deal yet another self-inflicted blow to Wales and the UK’s economic prospects.

“The UK Government should reconsider its approach.”