What is the New Student Sponsor Compliance Rule?

As of 1 June 2026, the Home Office has tightened the existing Basic Compliance Assessment requirements for student sponsors. This includes:

• A higher threshold for visa refusal rate, enrolment rate and course completion rate, and
• A new Red-Amber-Green (RAG) rating framework.

The changes are intended to make education providers more accountable for the international students they sponsor and to strengthen controls against misuse and non-compliance in the Student visa route.

The Bloomsbury Institute’s sponsor licence revocation on 5 August 2026 illustrates the consequences of failing sponsor compliance requirements. Bloomsbury had failed its Basic Compliance Assessment under the older, more lenient thresholds, and the Home Office stated that it would also have failed the new, stricter standards. The Home Office announcement does not specify whether Bloomsbury failed the visa refusal, enrolment or completion metric, or multiple metrics.

What is Basic Compliance Assessment for student sponsors?

The Basic Compliance Assessment (BCA) is an annual check that all Student sponsors must pass. Sponsors must apply for a Basic Compliance Assessment every 12 months, regardless of how long it took UKVI to decide the outcome of a previous assessment.

The assessment measures three core metrics:

1. The sponsor’s visa refusal rate
2. The proportion of sponsored students who enrol on their course, and
3. The proportion who complete it.

If a sponsor does not apply for a Basic Compliance Assessment on time, this will normally be treated as a serious breach of sponsorship duties, and the Home Office will begin licence revocation action.

How the Basic Compliance Assessment changed in June 2026

The key changes introduced from 1 June 2026 include:

• A higher threshold to pass the Basic Compliance Assessment
• A new Red-Amber-Green (RAG) rating system
• Tighter limits on reliance on Discretionary Assessments, and
• UKVI can now take compliance action even where the BCA is technically passed

Higher threshold to pass the Basic Compliance Assessment (BCA)

For all Basic Compliance Assessments applied for on or after 1st June 2026, a sponsor must now have:

• A visa refusal rate of less than 5%
• An enrolment rate of at least 95%, and
• A course completion rate of at least 85%.

BCA metric	Before 1 June 2026	From 1 June 2026
Visa refusal rate	Below 10%	Below 5%
Enrolment rate	At least 90%	At least 95%
Course completion rate	At least 85%	At least 85%

The course completion threshold will increase further to at least 90% for Basic Compliance Assessments applied for on or after 1 June 2027.

New Red-Amber-Green (RAG) rating system

The RAG rating system gives a sponsor a single overall colour rating covering all three metrics: visa refusal rate, enrolment rate and course completion rate. Each metric is separately rated red, amber or green according to set thresholds:

Refusal Rate:

• Red: ≥ 5%
• Amber: ≥4% – <5%
• Green: <4%

Enrolment Rate:

• Red: < 95%
• Amber: ≥95% – <96%
• Green: ≥96%

Course Completion Rate:

• Red: <90%
• Amber: ≥90% – <92%
• Green: ≥92%

The sponsor’s overall rating is the worst of the three individual metric ratings, not an average. For example, if a sponsor is rated green for enrolment and completion but red for refusal rate, the sponsor receives an overall red rating. If all three metrics are green, the sponsor receives an overall green rating. If any metric is amber and none is red, the sponsor receives an overall amber rating.

• A green rating is treated as an indication of strong performance, and no compliance action is taken in direct response.
• An amber rating normally requires the sponsor to attend formal engagement meetings with UKVI, and UKVI will not grant more Confirmation of Acceptance for Studies (CAS) than the sponsor’s previous usage until they become green rated.
• A red rating for the first time results in the sponsor being placed on an action plan lasting a minimum of 12 months, a reduction in their next CAS allocation of at least 10%, and a Final Warning that remains active for the sponsor’s next 5 Basic Compliance Assessments.

Transitional arrangements

• A transitional arrangement applies to the first RAG assessment under the new framework. Individual sponsor RAG ratings will not be published to the Register of Student Sponsors until every sponsor has received their first RAG rating, at which point all results are uploaded at the same time.
• The new 90% course completion threshold will not apply until Basic Compliance Assessments made on or after 1 June 2027, so course completion will not form part of a sponsor’s first RAG rating under the new framework.
• During the period from 1 June 2026 to 31 May 2027, sponsors must still meet the existing course completion rate of at least 85%. Failing this threshold will still result in appropriate compliance action. UKVI will also consider exercising operational discretion for a sponsor’s first assessment under the new framework where the sponsor would otherwise be rated red or amber, though this discretion is not guaranteed.

Reliance on discretionary assessments has been tightened

A sponsor that does not receive a green rating may be able to request a Discretionary Assessment, where UKVI considers the sponsor’s individual circumstances and may adjust the RAG rating that would otherwise apply. Repeated reliance on Discretionary Assessments has now been tightened.

If a sponsor has failed to meet the core requirements in each of its previous three consecutive Basic Compliance Assessments, but was nevertheless given a pass following a Discretionary Assessment, it is unlikely to receive another discretionary pass unless exceptional circumstances apply.

UKVI can take action even where the BCA is technically passed

Meeting the Basic Compliance Assessment thresholds does not necessarily prevent compliance action being taken. A sponsor that is close to the thresholds, but has not breached them, may still receive an action plan if UKVI finds recruitment issues that amount to a breach of its sponsorship duties in properly recruiting genuine students.

Likewise, meeting the Basic Compliance Assessment requirements does not prevent UKVI from taking action for other sponsorship breaches. A sponsor may still be found in breach of its general sponsorship duties following a compliance visit or audit, even after receiving a green or amber BCA rating.

What should student sponsors do under the stricter compliance rules?

We recommend that student sponsors take the following actions in light of the new stricter compliance rules:

• Strengthen student recruitment and pre-CAS checks: Student sponsors should have robust procedures for determining whether an applicant is a genuine student who is capable of complying with the Immigration Rules, enrolling on the intended course and successfully completing it. Before assigning a Confirmation of Acceptance for Studies (CAS), sponsors should also be satisfied that the student has the necessary English-language ability and academic credentials. Where recruitment is substantially agent-led, sponsors should review agent due diligence, oversight arrangements and performance to ensure recruitment practices remain appropriate.
• Keep BCA metrics under regular review: Refusal, enrolment and course-completion outcomes should be monitored throughout the year, rather than only when a formal assessment result is received. Regular analysis can help sponsors spot negative trends early and take corrective action before their performance reaches Amber or Red level.
• Act quickly following an Amber or Red result: Sponsors receiving an Amber or Red BCA outcome should review the Outcome Notice in detail and respond within any stated timescales. This may include attending an engagement meeting, providing requested information and implementing an action plan. If the sponsor intends to dispute the result, it should identify and diarise the deadline for representations immediately.
• Don’t overlook the wider sponsorship regime: BCA results are only one aspect of sponsor-licence compliance. Sponsors must continue to meet their broader duties, including accurate record-keeping, timely reporting, appropriate CAS assignment and effective attendance monitoring. Breaches in these areas may lead to compliance action independently of BCA performance, potentially including suspension or revocation of the sponsor licence.

References:

GOV.UK: Student sponsor compliance

GOV.UK: Bloomsbury Institute’s student sponsor licence revoked