UK Home Office Tightens Student Visa Compliance, More Universities on Action Plans

Key Takeaways

• From mid-2025, universities face stricter Basic Compliance Assessment benchmarks enforced by UKVI.
• Visa refusal rate must be below 5%; enrolment 95%; course completion 90% from 2025.
• Graduate Route cut to 18 months for courses starting after January 1, 2026; 6% levy proposed.

The United Kingdom is pushing through the toughest reset to international student migration in decades, with new Home Office rules reshaping who universities can recruit and how they must monitor students. From mid‑2025, tighter sponsorship standards, public compliance scores, and stricter agent controls are rolling out, with further limits on post‑study work and dependants due by early 2026. Universities that fall short face fast sanctions, including caps on new enrolments and even loss of their sponsor licence, while students weigh shorter work options and higher risks.

Policy changes: what’s changing and when

The Home Office has raised the bar for the Basic Compliance Assessment that all student sponsors must meet. These updated benchmarks are being phased in through 2025 and will be enforced by UK Visas & Immigration (UKVI). From 2025, universities must achieve:

• Visa refusal rate: below 5% (previously 10%)
• Enrolment rate: at least 95% (previously 90%)
• Course completion rate: at least 90% (previously 85%)

Institutions that miss any metric will be placed on an “action plan”, bringing:
– recruitment caps
– frequent audits
– strict remediation deadlines

Continued failure can lead to suspension of the sponsor licence, effectively blocking recruitment of international students. UKVI has already taken action: the University of Essex and Glasgow Caledonian University entered action plans in summer 2025 after missing updated enrolment or refusal targets. Analysis from VisaVerge.com suggests mid‑tier universities, with tighter margins and volatile applicant mixes by country, face particular pressure.

Public performance: RAG ratings

The Home Office now publishes a Red‑Amber‑Green (RAG) rating for each student visa sponsor so applicants can see a sponsor’s current status before applying:

• Green: meets standards; no restrictions
• Amber: minor breaches; on an action plan; recruitment capped
• Red: serious breaches; highest restrictions and licence risk

This transparency aims to raise compliance and steer applicants to higher‑performing sponsors. A red rating can cause an immediate fall in applications, threatening fee income and staffing plans.

Agent Quality Framework (AQF)

From May 22, 2025, the Agent Quality Framework (AQF) applies across the recruitment chain and ties into Confirmation of Acceptance for Studies (CAS) reporting. Universities must:

• vet agents
• monitor agent performance
• publish agent data
• retrain or remove underperforming agents promptly

Non‑compliance with AQF can itself lead to an action plan or licence loss. The AQF’s clear aim is to reduce fraud and push down the visa refusal rate that feeds into the Basic Compliance Assessment.

Financial and levy proposals

The government has proposed a 6% levy on tuition fees paid by international students to fund domestic skills training. If Parliament approves it during the autumn budget process, the levy would apply to cohorts starting January 2026.

• University leaders warn the levy would further strain finances.
• Sector data indicate up to 72% of institutions could run a deficit in 2025/26, following earlier limits on dependants that reduced expected fee income.

Post‑study work and dependants

Post‑study work is tightening for new intakes:

• For courses starting after January 1, 2026, the Graduate Route will be reduced from two years to 18 months.

Students seeking longer work/settlement routes will need earlier planning for alternatives such as:
– Skilled Worker sponsorship
– Global Talent
– High Potential Individual schemes for top graduates

Dependants face higher language requirements:

• By year‑end, dependants of Student and Skilled Worker applicants must meet English at CEFR B2.
• This builds on last year’s restrictions on most dependants of taught master’s students.

For the official sponsor rulebook, see the Home Office’s Student sponsor guidance on GOV.UK: https://www.gov.uk/government/collections/sponsor-a-student-guidance

Impact on applicants and universities

The overall picture is mixed and varies by nationality and institution.

• In the first half of 2025, more than 403,000 sponsored study visas were granted.
  • This was about a 10% drop year‑on‑year to March 2024, but stronger than expected after dependant limits.
• Applications jumped early in 2025, with gains from Nigeria and India.
• Chinese nationals were the largest group, with about 102,726 sponsored study grants between April 2024 and March 2025.

Grant rates differ widely by nationality:
– Close to 96% for some groups
– Below 65% for others amid tighter documentary checks

To protect their Basic Compliance Assessment, several universities have paused or scaled back offers in regions with higher refusal patterns, since a spike in denials can push a sponsor above the 5% refusal ceiling.

Competing narratives

Ministers argue firmer guardrails are needed to protect quality and public trust after post‑pandemic net migration rises, citing misuse of study routes and poor agent practice. University leaders counter that the rules risk deterring high‑achieving students, especially as family rules tighten and post‑study work shortens. They warn an amber or red label—even temporarily—can damage a brand for years, spooking applicants and partners.

Student practical impacts

• A sponsor’s RAG rating now matters as much as course reputation. Amber or red labels can signal higher risk of last‑minute changes, caps, or extra checks—delaying visas or affecting graduation plans.
• The shorter Graduate Route gives graduates less time to secure sponsored roles, making early employer engagement essential.
• Families must plan for B2 English for dependants, incurring testing time and costs.
• Many prospective students will compare UK hurdles with those in Canada or Australia, potentially choosing destinations with longer work windows or smoother settlement pathways.

Immigration lawyers and policy analysts caution that metrics can be misleading:
– A single‑number visa refusal rate can be skewed by a few cohorts or changing documentation standards mid‑cycle.
– They argue for case‑by‑case review where context explains a blip, instead of blunt penalties that harm students and staff.

Practical steps and recommendations

For universities

1. Build real‑time dashboards for refusal, enrolment, and completion rates.
2. Tighten offer‑to‑CAS checks in higher‑risk markets.
3. Train staff and agents on AQF rules and publish agent performance data.
4. Expand academic and language support to lift completion rates above 90%.
5. Communicate RAG status clearly to current and prospective students.

For students

• Choose a green‑rated sponsor where possible.
• Keep perfect attendance and coursework records (sponsors must track these).
• Prepare family applications early to meet B2 English for dependants.
• If long‑term work is the goal, plan early for sponsored roles.

Form links to apply:
– Student visa application: https://www.gov.uk/student-visa/apply
– Skilled Worker visa application: https://www.gov.uk/skilled-worker-visa/apply
– Graduate visa application: https://www.gov.uk/graduate-visa/apply

Key takeaway: The next 12 months will set the tone for the UK’s place in global education. With the levy likely from January 2026, the Graduate Route cut fixed to new courses from that date, and public RAG ratings already live, the market will react fast. Universities that adapt admissions and student support to meet the Basic Compliance Assessment should remain competitive; those that do not risk losing both their licence and their intake pipeline. For many prospective students, the new balance of risk and reward will decide whether the UK stays on their shortlist—or whether they choose another destination.