In a significant policy shift, the UK government has announced an increase in financial requirements for international students, effective January 2, 2025. This marks the first adjustment since 2020. Students studying in London will now need to demonstrate that they have £1,483 per month, up from the previous requirement of £1,334, reflecting an 11.2% increase. For those studying outside London, the monthly requirement has risen to £1,136 from £1,023, an increase of 11.1%. Consequently, the total savings required for nine months of study in London will amount to £13,348 [fc26425a].
These adjustments aim to align financial requirements with domestic maintenance loans and the rising cost of living in the UK. Notably, there are provisions for flexibility, such as reduced funds for students who have already paid accommodation deposits. Additionally, long-term residents will be exempt from showing proof of funds. Other visa requirements remain unchanged, including the need for a Confirmation of Acceptance for Studies (CAS), proof of English proficiency, health insurance, and a valid passport [fc26425a].
In related news, the Working for Families debt in New Zealand has surged by over $42 million in the past nine months, totaling $280.025 million by the end of May 2024. This increase has been attributed to individuals earning more than anticipated and overpayments by Inland Revenue. The threshold for receiving Working for Families payments is set at $42,700, which has pushed more individuals into debt as their salaries rise. The system has been criticized for its complexity, with calls for a simplification into a single tax credit [12a1c1d2].
Meanwhile, in the UK, the number of children affected by the two-child benefit cap is projected to rise significantly. Currently impacting two million children, this number could increase by a third over the next five years, reaching 670,000 if the policy remains unchanged. The cap restricts Child Tax Credit and Universal Credit to the first two children in most households, leading to substantial financial losses for affected families [c730275c].
Additionally, the family visa salary threshold of £29,000 may not see an increase under a Labour government, as concerns about the threshold have been expressed. Currently, the threshold is set to rise to £34,500 later this year and to £38,700 in early 2025. However, Labour has indicated it may review the family visa scheme if it gains power [97b4cdd1].
The UK government has also postponed its plan to increase the salary threshold for family visa applications, with Home Secretary Yvette Cooper confirming that the current threshold will remain in place until a review by the Migration Advisory Committee (MAC) is completed. This review will evaluate the balance between 'respect for family life' and the 'economic wellbeing of the UK' [7e552a52].