Wed. Aug 20th, 2025

Why Are Indian Students Shunning the UK? A 42% Drop in Enrollments Reveals the Truth

Why Are Indian Students Shunning the UK A 42% Drop in Enrollments Reveals the Truth

TL;DR: The UK’s rule changes since January 2024—tougher dependant rules for students, a July 2025 raise in skill and salary thresholds for work visas, and the end of overseas recruitment for care workers—have sharply reduced applications from Indians across study and work categories. Indian nationals saw study visa grants fall from 159,371 (2023) to 92,355 (2024) — a 42% decline — while July 2025 Home Office data shows lower applications across key routes. Universities, the care sector, and UK employers face real pipeline pressures; Indian applicants face higher costs, fewer family options, and more uncertainty.


What the official numbers say

  • Study visas (overall trend): Sponsored study applications from main applicants in the year ending July 2025 were 428,900, down 3% year-on-year. Student dependants fell 86% after the January 2024 rule change that limits dependants to postgraduate researchers or students on government-funded scholarships.
  • Indian nationals specifically: UK grants of study visas to Indian nationals fell from 159,371 (2023) to 92,355 (2024) — a 42% drop, per Home Office-sourced reporting.
  • Skilled Worker visas: Applications were broadly ~6,000/month to early 2024, then eased; July 2025 saw 4,900 main-applicant Skilled Worker applications.
  • Health & Care Worker visas: From a peak 18,300 (Aug 2023) to 1,300 (July 2025) for main applicants; dependants fell from 23,300 (Aug 2023) to 4,900 (July 2025).
  • Temporary work: Youth Mobility Scheme applications were 22,200 (year ending July 2025), 10% lower year-on-year; Seasonal Worker applications were 38,600, +9% YoY.
  • Family visas: Applications rose from 7,500 (Dec 2023) to 12,700 (Apr 2024) ahead of the income-rule uplift, then fell to 5,100 (June 2024) and recovered to 8,100 (July 2025).

These are Home Office provisional monthly statistics for July 2025 and provide the clearest current view of what’s happening across routes.


What changed — and why it hit Indian applicants hardest

1) Student dependant rules (from January 2024)

Most taught-course students can no longer bring family members; only PGRs and government-funded scholars are exempt. This single policy shift explains the 86% collapse in dependant applications — a major factor for Indian families who often plan study as a joint move.

2) Higher bars for work visas (from 22 July 2025)

The Statement of Changes (HC 997) raised the skill threshold for Skilled Worker to RQF Level 6 (graduate level) with limited exceptions (Immigration Salary List and the new Temporary Shortage List) and lifted the general salary threshold from £38,700 to £41,700. Fewer mid-skill roles now qualify; more offers fall short on pay.

3) End of overseas recruitment for care workers (from 22 July 2025)

New overseas entry for care worker and senior care worker roles has ended, after widespread compliance action in the sector. Transitional provisions allow in-country switching and extensions until July 2028 for some existing workers. This closed an important pathway heavily used by Indians.

4) Higher cost of migration

The Immigration Health Surcharge (IHS) increased on 6 February 2024. Students (and their dependants) now pay £776 per year upfront; other routes pay £1,035 per year. For a two-year degree plus Graduate route, this adds materially to total cost.

5) Policy uncertainty around post-study work

The government’s May 2025 White Paper proposes reducing the Graduate Route to 18 months (currently two years), among other tightening measures. Proposals are politically salient; even before legislation, uncertainty alone can deter applications.


“42% down”: what that means in context

  • Indian study visas granted dropped from 159,371 (2023) to 92,355 (2024) — a 42% fall — even as overall sponsored study volumes only nudged down 3% in the latest year-to-July reading. This suggests disproportionate impact on Indians, for whom dependant rules, costs, and post-study uncertainty are especially consequential.
  • Indian families frequently plan for dependants and immediate work options; the UK is now less permissive on both fronts than it was in 2021–2023.

Impacts — for the UK and for India

For the UK

  • Universities: Fewer Indian enrollments strain finances (Indians are a top cohort). Sector bodies and analysts warn of revenue risk and possible course closures if the trend persists. Policy signals on a potential levy on international fees add to uncertainty.
  • Care sector: Ending overseas recruitment curbs a channel that filled critical vacancies since 2020. Without rapid domestic workforce uplift and funding reform, providers face staffing gaps and service pressure.
  • Employers (beyond care): RQF 6 + £41,700 narrows eligibility for junior hires, start-ups, and SMEs in regions with lower salary medians. Expect more “near-miss” cases where roles are skilled but pay fails the new floor.
  • Net migration objectives: The package is designed to lower numbers, and early monthly data shows clear behavioural effects. But reductions may come with trade-offs: slower-scaleups, tighter NHS/social care staffing, and reduced campus cross-subsidy from internationals.

For India

  • Talent allocation: With UK access harder and US tightening in parallel, Indian students will rebalance toward EU, Australia, Middle East, and ASEAN destinations—or remain domestic for emerging high-quality programmes.
  • Remittances & networks: Fewer immediate family migrations and fewer early-career UK jobs could slightly dampen near-term remittances and UK-India professional networks, though long-term effects depend on domestic job creation and alternative corridors.
  • Upside: Lower outbound dependency may nudge Indian HEIs and employers to expand capacity, research links, and graduate pipelines at home (especially in AI, healthcare, semiconductors), softening the “brain drain” narrative.

(The India impacts above are economic inferences; the causal drivers on the UK side are evidenced by official Home Office policy and statistics.)


Practical guidance (from a UK solicitor’s desk)

If you’re an Indian student applying for Autumn 2025/Jan 2026

  1. Dependants: Unless you are a PGR or government-funded scholar, assume no dependants may accompany you. Plan housing/finances accordingly.
  2. Budget accurately: Add IHS (£776/year per person) to tuition, visa fees, and living costs. A two-year programme for a single student is £1,552 in IHS alone; for a family, multiply accordingly.
  3. Graduate Route: As of today, it remains two years (three for PhDs). Be aware of the 18-month proposal in the White Paper—track legislative progress if post-study work is core to your ROI.
  4. Scholarships & research routes: Where feasible, pivot toward PGR offers or government-funded scholarships if family accompaniment is non-negotiable.
  5. Compliance focus: Keep records impeccable (CAS, TB tests if required, funds evidence) and beware of agents promising workaround routes—policy tightness has increased sponsor and case-work scrutiny.

If you’re an employer in the UK hiring Indian graduates or professionals

  • Role design & pay: Check the role meets RQF 6 and £41,700 (or route-specific going rate). Use exceptions (Immigration Salary List / Temporary Shortage List) where genuinely applicable.
  • Care sector: No new overseas care worker sponsorship; plan for domestic recruitment, apprenticeships, and productivity investment. Some in-country switching is possible until July 2028; audit your workforce now.
  • Sponsor compliance: Expect heightened audits; poor files risk licence curtailment and reputational harm. Use updated July 2025 sponsor guidance.

Timeline — key dates at a glance

  • Jan 2024: Student dependant restrictions take effect.
  • 6 Feb 2024: IHS rises (students £776/year; standard £1,035/year).
  • Spring 2024: Increased Home Office compliance in health & social care; applications fall.
  • 12 May 2025: Government publishes White Paper — Restoring Control over the Immigration System (proposes Graduate Route down to 18 months, among broader reforms).
  • 22 July 2025: HC 997 changes take effect: RQF 6, £41,700 salary floor; end of overseas recruitment for care workers with limited in-country transitions until July 2028.

So, why are Indian students “shunning” the UK?

Because the value equation has shifted:

  • Bringing family is far harder (policy),
  • Converting to work is narrower (skills & pay thresholds),
  • Costs are higher (IHS & fees), and
  • The policy horizon is uncertain (prospective Graduate Route changes).

When families run the numbers and assess risk, many choose a different destination—or defer.


Frequently asked questions

Is the UK Graduate Route still two years today?
Yes. As of 17 August 2025, the route remains two years (three for PhDs). The White Paper proposes 18 months, but that requires further parliamentary process before it can take effect.

Can Master’s students still bring dependants?
Generally no. Only postgraduate researchers or those on government-funded scholarships can bring dependants under current rules.

What if my UK job offer pays below £41,700?
It likely won’t qualify under the general Skilled Worker route unless it meets a permitted exception (e.g., an occupation on the Immigration Salary List or Temporary Shortage List with applicable salary provisions). Seek specific legal advice on your SOC code and pay.

Is overseas recruitment for care workers completely closed?
For new entrants from overseas, yes (from 22 July 2025). Certain in-country workers can switch/extend until July 2028 under transitional rules.

Why have Indian student enrollments in the UK dropped by 42%?
Because of a combination of stricter visa rules, dependant restrictions, higher costs (IHS & visa fees), and uncertainty around post-study work options. Many Indian families now find the UK less affordable and less accommodating for dependants.

Can Indian Master’s students still bring family members (dependants)?
No, not in most cases. Since January 2024, only postgraduate research students or those on government-funded scholarships may bring dependants. Taught Master’s students are excluded.

Is the Graduate Route (post-study work visa) being scrapped?
Not scrapped, but under review. The government’s May 2025 White Paper proposed cutting it from 2 years to 18 months. At present (August 2025), it is still 2 years (3 for PhD graduates).

What are the new salary requirements for Skilled Worker visas?
The minimum salary threshold rose in July 2025 from £38,700 to £41,700 for most roles (with limited exceptions for shortage occupations). This makes entry harder for new graduates and mid-level jobs.

Can Indian care workers still apply to the UK?
No, not from overseas. From 22 July 2025, international recruitment for care worker and senior care worker roles has ended. Existing workers already in the UK can apply to extend or switch until July 2028.

How much is the UK Immigration Health Surcharge (IHS) for students?
As of 6 February 2024, students pay £776 per year upfront. For a two-year Master’s, this is £1,552 in addition to visa fees and tuition. Dependants pay the same.

Are UK universities losing revenue because of these changes?
Yes, especially from Indian students, who form one of the largest international cohorts. The 42% fall in Indian visas means fewer enrollments, pressuring universities financially — particularly as they rely heavily on international fees.

Which countries are Indian students choosing instead of the UK?
Many are pivoting toward Australia, Canada, Germany, UAE, and other European or Asian destinations, where post-study work rules and dependant policies are currently more favourable.


Sources you can trust (key references)

  • Home Office monthly statistics (July 2025) — work, study, family, temporary routes, and policy notes. GOV.UK
  • Statement of Changes (HC 997) — effective 22 July 2025 (RQF 6; £41,700). GOV.UK Assets
  • White Paper: Restoring Control over the Immigration System (May 2025) and parliamentary briefing. GOV.UK AssetsHouse of Commons Library
  • IHS official rates (Gov.uk). GOV.UK
  • Indian study visas drop 42% (Home Office-sourced reporting). The Economic Times
  • Additional coverage: LiveMint, Economic Times, Edexlive on Indian students’ pivot away from the UK in 2025.

Final word (and a solicitor’s caution)

The UK remains a world-class destination. But today’s rules demand sharper planning: the course you choose, whether you need to bring family, and the job pathway you’re targeting all matter more than they did two years ago. If your decision hinges on dependants or post-study work, get tailored legal advice before you commit deposits or resign roles.

This article is for general information only and does not constitute legal advice. If you’d like a document-check or a personalised route assessment based on your course, finances, and intended role/SOC code, we can help.


People Also Ask (PAAs)

Can Indian students get PR in the UK after study?
Yes, but the route is longer and tougher: typically study → Graduate Route → Skilled Worker visa (5 years) → ILR (permanent residency). With raised thresholds, progression is harder for new graduates.

Will UK student visa rules get stricter in 2026?
Possibly. The Home Office has signalled ongoing tightening as part of its Restoring Control agenda. More reforms may follow the 2025 White Paper.

Why is the UK limiting dependants of Indian students?
To reduce net migration figures, which peaked in 2022–23. Dependants contributed significantly to inflows, particularly from India and Nigeria.

Are UK Skilled Worker visas still worth it in 2025?
Yes, but only for highly paid graduate-level jobs. For junior roles or those below the £41,700 threshold, it is much harder now.

How do UK visa policies compare with the US in 2025?
Both have tightened. The US has delays and stricter scrutiny, while the UK has cut dependant rights and raised salary/skill thresholds. Students are increasingly exploring third destinations.

By AYJ Solicitors

AYJ Solicitors provides expert UK visa and immigration updates, news, and legal advice. We help individuals and businesses understand and navigate complex immigration processes effectively.

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