- The Home Office cut the refusal ceiling to 5% for student sponsors on June 1, 2026.
- Sponsors must enrol at least 95% of students and achieve 85% course completion, rising to 90% in June 2027.
- A failed requirement can trigger a 12-month action plan and at least 10% fewer CAS places.
The Home Office tightened the student sponsor test on June 1, 2026, requiring universities to keep the Basic Compliance Assessment refusal figure below 5%. Miss the mark and a university risks a red rating, an action plan and fewer student places to offer.
Sponsors must also enrol at least 95% of students and record course completion of at least 85%. The completion requirement rises to 90% from June 2027. The refusal ceiling was previously 10%, while the enrolment threshold rose from 90%.
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A failed core requirement triggers an action plan lasting at least 12 months. The Home Office also cuts at least 10% from the institution’s next Confirmation of Acceptance for Studies allocation. Repeated or serious breaches can bring suspension or loss of the sponsor licence.
The pressure comes as refusals rise. The Home Office put the overall rate at 4.9% for the year ending June 2026, its highest level since 2016. At least 12 institutions were reportedly above the new limit.
Some universities recorded refusal rates between 10% and 20%. Institutions have suspended recruitment or agent relationships in India, Pakistan and Sri Lanka. The exposure differs by market.
Refusal rates vary sharply by market and measurement
| Group or measure | Refusal rate | Period or comparison |
|---|---|---|
| Pakistan | 19% | Year ending June 2026, up from 5% in the preceding year; 34.2% in the latest quarter |
| India | 4.2% | Year ending June 30, 2026, up from 2.9% a year earlier; 9.1% in the latest quarter |
| Ghanaian applicants | 30.95% | Enroly data, among applicants reaching the visa-outcome stage |
| Nigerian applicants | 11.9% | Enroly data, among applicants reaching the visa-outcome stage |
| Pakistani applicants | 10.15% | Enroly data, among applicants reaching the visa-outcome stage |
| Bangladeshi applicants | 9.1% | Enroly data, among applicants reaching the visa-outcome stage |
The figures use different time periods and, in Enroly’s data, a defined group of applicants who reached a visa decision. University leaders also described an abrupt summer jump: one vice-chancellor said Nigerian applicant refusals rose from about 3% to almost 35% in August.
Two universities have already lost sponsor status or faced suspension
The Home Office suspended Buckinghamshire New University’s student sponsor licence on September 30, 2026. The decision took effect immediately, and the university disappeared from the register of licensed sponsors.
The university said most of the concerns involved historic international recruitment. It has 20 days to respond to the Home Office; an inadequate response could lead to licence revocation. That is already a serious restriction.
London’s Bloomsbury Institute lost its licence on August 5, 2026, after failing the earlier assessment. At that time, sponsors had to keep refusals below 10%, enrol at least 90% of students and reach an 85% course-completion rate.
Visa refusals are feeding directly into university budget pressure
The University of Sunderland is seeking £40 million in budget cuts within one year. Chief financial officer Ben Dale told staff that financial pressures had been “exacerbated by a sudden and immediate impact of increased visa refusals,” which had significantly reduced international recruitment.
Sunderland had already withdrawn 69 offers to applicants from Myanmar. The move followed a visa brake introduced in March 2026 for nationals of Sudan, Myanmar, Afghanistan and Cameroon.
The government estimated the brake would prevent approximately 4,300 Student visas from being issued. That total included about 200 visas for Cameroonian applicants and 160 for Sudanese applicants.
Vice-chancellor David Bell said the unexpected refusal increase had disrupted recruitment. He called for clarification on whether visa approval criteria had changed.
Universities are screening harder, but there is no blanket visa ban
Because refusal rates count at institution level, universities are reviewing both applicants and the countries from which they recruit. Their reported steps include pausing country recruitment or agent partnerships, withdrawing offers before visa applications, strengthening financial and credibility checks, and issuing CAS only to applicants they consider lower risk.
Enroly reported that CAS issuance had fallen 27% year on year, while refusals across all nationalities were 30% higher. David Bell and University Alliance have also warned that refusals, processing delays, policy changes and the international student levy are hurting recruitment and university finances.
As of October 7, 2026, there is no blanket UK ban on Indian or Pakistani students. Individuals from those countries can still apply for Student visas. The risk falls on universities, particularly those reliant on Pakistan, Nigeria, Ghana or Bangladesh, if their refusal figures remain above the limit.