| Practice area: | Education and Labour Markets |
|---|---|
| Client: | Higher Education Policy Institute, Kaplan International Pathway, and National Union of Students |
| Published: | 7 May, 2024 |
| Keywords: | economics of education higher education 2024 Public Policy |
In the context of the ongoing rapid review of the Graduate Route visa by the Migration Advisory Committee (MAC), due to report its findings by 14th May 2024, and the significant political debate on restrictions on the number of international students and graduates (and their dependants) in the UK, London Economics was commissioned by the Higher Education Policy Institute, Kaplan International Pathways, and the National Union of Students (NUS) to estimate the UK Exchequer benefits and costs associated with Graduate Route visa holders in the 2022-23 tax year. This study follows our previous studies assessing the tax revenues associated with international higher education students post-graduation (here) and the economic benefits and costs of international HE students in the UK during study (here, here and here).
Key findings
- There were an estimated 66,410 Graduate Route visa holders in the UK in 2022-23, including 56,460 main applicants (i.e. international graduates from UK HE) and 9,950 dependants (in other words, there were approximately 176 dependants for every 1,000 main GR visa holders).
- The total net Exchequer benefit associated with these Graduate Route visa holders in the 2022-23 tax year was estimated at £70 million. This is equivalent to a net benefit per main Graduate Route visa holder (i.e. per international graduate) in 2022-23 of £1,240.
- The gross Exchequer benefit associated with Graduate Route visa holders in the 2022-23 tax year was estimated at £588 million, which is equivalent to £10,410 per main Graduate Route visa holder.
- The Exchequer cost associated with Graduate Route visa holders in the 2022-23 tax year was estimated at £517 million. This is equivalent to £9,160 per main Graduate Route visa holder.
The report can be found here.