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Uncertainty grows for international graduates in the UK ahead of MAC’s crucial Graduate visa review

Written by
Yash Dubal
Date of Publication:

If you are one of the many organisations which employ international graduates, things can look quite bleak at the moment. For those with graduate schemes running this year and looking for the next cohort of international talent there is uncertainty. The popular Graduate visa route is currently under review and it is likely when the reviewing body, the independent Migration Advisory Committee (MAC), reports back to the Government in mid-May, it will recommend restrictions. There is a chance the visa route will be scrapped altogether.

This would mean the main option open to employers will be the Skilled Worker visa route. And this also presents challenges thanks to the recently increased salary threshold. Introduced in early April the hike effectively makes it much more expensive to hire from overseas. The impact of this policy change is already being felt. In April KPMG withdrew several graduate scheme job offers made to foreign applicants because the salary offered to the applicants fell below the new threshold, which was introduced on April 4 when the salary requirements for Skilled Worker visa recipients rose from £26,200 to £38,700 and to £30,960 for those under the age of 26.

According to the career website Glassdoor, the average yearly salary for KPMG's graduate trainees ranges between £29,000 to £35,000. The Financial Times reported that the firm, which hired 1,400 graduates and apprentices last year, will fill the now-vacant graduate places with people who are entitled to work in the UK, according to one person familiar with the matter. The newspaper also assessed the wider impact of the rules on international graduate hires and concluded that firms outside London will now find it hard to employ graduates. Only the most skilled and experienced workers in jobs with above-average salaries will qualify for Skilled Worker visas.

Meanwhile, there was bad news for European graduates looking to work in the UK after politicians rejected a proposal by the EU for a youth mobility scheme which would allow free movement for young people between Britain and Europe.

All this means that currently international students in the UK, businesses that employ graduates and graduates outside the UK hoping to work here are all in limbo, awaiting the results of the Graduate visa review.

There are options however. For example, the Temporary Worker government allowance visa route allows graduates to remain in the UK usually for 12 or 24 months for work experience related to their academic course. The route is aimed at graduates who require work experience, internships or professional training for their field of work, or for postdoctoral research projects, but is limited to organisations offering these schemes and/or research projects.

Young people from selected countries including Australia, Canada, Japan, Monaco, and New Zealand can also take advantage of youth mobility schemes which allow a limited number of people authorisation to live and work in the UK for up to two years. There are different rules and requirements depending on country of origin and spaces are allocated through annual ballots. Indian nationals can also use the India Young Professionals Scheme visa scheme which allows Indian citizens between 18 and 30 years old to live and work in the UK for up to 2 years. Selection is also via a ballot and there are also eligibility criteria.

For graduates applying from outside the UK one little-used option is the High Potential Individual visa which is similar to the Graduate visa, and gives graduates the right to remain in the UK for two years (or three if they have a PhD). The HPI visa differs from the Graduate visa because applicants can apply from outside the UK and dependents can be added to it. The big difference however is that applicants must have studied previously at one of the specific qualifying universities listed by the government and must have graduated in a specific year. Full details of all the above visa routes are available on the Government website.

Finally, one of the most flexible, but overlooked routes for those serious about moving to the UK to set up a business is the self-sponsorship route. Self-employed workers from the USA and India previously blocked from access to the British market have already successfully gained legal UK work visas through the scheme. The process involves two stages. First, an individual establishes a UK limited company, which foreign nationals can legally do. Secondly that company then sponsors the individual to gain a Skilled Worker visa. The process complies fully with UK immigration and company rules. Those interested in this option are advised to consult with a recognised and experienced UK-based legally registered immigration law firm.