The announcement comes after the visa was put under review by the previous Conservative government, due to allegations that it was being abused by international students as a "back door" into the country.
However, speaking on the BBC’s Today program earlier this week, the government's new secretary of state for education, Bridget Phillipson, reassured international students they can study in the UK “with certainty and confidence”.
She acknowledged “the difference international students make when it comes to the local economy and to regeneration … the soft power and the reach they give us around the world as they return home after their studies”.
The secretary’s announcement echoed the findings of a report released by the Migrant Advisory Committee (MAC) earlier this year, which found that not only was there no evidence that the system was being abused, but that international students had a net positive effect on the economy.
Phillipson also addressed the poor financial situation of British universities, allowing the possibility that tuition fees would be raised with inflation while denying accusations that the government would act as a “lender of the last resort”.
Talk of potential changes to the visa had sparked condemnation among leading third level and business school officials, who were concerned that any further restrictions to international students would see a sharp decline in income for universities.
The current funding crisis, which could see up to 80% of institutions at risk of budget deficits, has been attributed to the sharp decline in the number of international student enrollments.
Most reports place the blame on recent changes to the visa system, including the controversial ban on visa dependents, which prevented international master’s students from bringing family members to the UK.
