Student sponsor compliance update

Student sponsor compliance update

On 1 June 2026, the Home Office implemented a significant set of changes to the compliance framework that must be met by educational institutions holding a sponsor licence issued by UK Visas & Immigration to sponsor Student migrants ('Student sponsors'). 

These changes form a significant shift in compliance monitoring of Student sponsors. While the Basic Compliance Assessment ('BCA') remains the mechanism through which Student sponsors will be assessed on compliance annually, the thresholds have been significantly tightened and the consequences of non-compliance have become greater, with sponsor licence revocation set to become a far more frequent outcome.  

Student sponsors must now meet higher targets across three core metrics: 

• Visa refusal rate – less than 5% (down from 10%) 
• Enrolment rate – at least >95% (up from 90%)
• Course completion rate – at least 85% (no change but will increase to >90% from 1 June 2027), For the purposes of the course completion rate, students who defer and temporarily leave the UK, switch sponsor or immigration category, or withdraw from their course and leave the UK are excluded from the calculation.

In addition to the core metrics of the BCA tightening, a new Red-Amber-Green ('RAG') system has been introduced. Sponsors will no longer pass or fail the BCA, but will instead receive an overall rating based on performance across the three metrics Red (target not met) Amber (target narrowly met) and Green (target comfortably met). Discretionary Assessments remain possible but are expected to be used more restrictively.

Crucially, the RAG rating system is not an aggregate system. Instead, a sponsor’s rating will be determined by their lowest rated metric (ie a Red rating in one metric provides a Red rating overall). There are significant consequences for any Student sponsors that fail to achieve a Green rating, including: 

• Red rating: action plan, reduced Certificate of Acceptance of Studies ('CAS') allocation, and a 'Final Warning' (of Student sponsor licence revocation) which will remain active for the next five BCAs, during which time they will be at risk of sponsor licence revocation if another Red rating is received
• Amber rating: regular Home Office engagement, restrictions on increasing CAS allocation, and possible action plan depending on the circumstances

For sponsors, the key takeaway is that compliance margins have narrowed, and the operational and reputational stakes of falling short are now considerably higher, with ratings being made publicly available and the likelihood of sponsor licence revocation being significantly increased. It is essential that Student sponsors take action now to ensure that their compliance procedures are robust and that they are on track to meet the newly published targets. 

By combining our sector-focused education expertise with deep UK sponsor licence compliance capability, we are uniquely positioned to support institutions in navigating an increasingly complex regulatory landscape. Please get in touch with our relevant contacts below for any further information.