Tens of thousands of bogus students are in Britain because of the “national scandal” of sham colleges that offer courses to foreigners, MPs were told yesterday.

Hundreds of bogus colleges have enrolled young people who in reality are economic migrants using the student visa route to enter the country.

The existence of so many bogus colleges is damaging the international reputation of the education sector, the Commons Home Affairs Select Committee was told. An estimated 2,400 colleges are considered by the Government to be under suspicion.

The committee was also told that there is a “cottage industry” in parts of Yorkshire and the North West in the provision of certificates of proficiency in English language to help people to obtain permanent residence.

The committee convened yesterday after an investigation by The Times revealed a network of sham colleges in London, Manchester and Bradford. The Times has made available its evidence to MPs on the commitee and has co-operated with the Home Office.

Phil Woolas, the Immigration Minister, told the committee: “I think the existence of colleges, or so-called colleges, either exploiting students or for visa reasons has been a problem for more than a decade.”

Mr Woolas estimated that there were 2,400 such colleges. Asked how many bogus students were in the country, he said: “There is not a specific figure that we estimate. It is best not to guess, if you can’t be sure.”

In April Mr Woolas admitted that bogus colleges had been the Achilles’ heel of the immigration system.

Tony Milns, chief executive of English UK, an organisation that accredits English language centres in Britain, said it had been aware of the risk posed by bogus colleges for about ten years.

Mr Milns said that many colleges in the country required further investigation to check whether they were genuine and providing a high-quality education.

Keith Vaz, chairman of the select committee, asked whether there could be hundreds of bogus colleges and tens of thousands of bogus students.

Mr Milns said: “Quite easily. The Home Office and the Border Agency are well aware of the scale of the problem since 2004 when David Blunkett announced that registration of colleges would be required. It has been for many years a national scandal that anyone, whether a fit or proper person or not, can hire two rooms above a fish and chip shop and call themselves a college.

“It is almost unbelievable given that the world holds UK education as high quality.”

Mr Milns said that it was possible that people who had been recruited into terrorism used bogus colleges as a means of getting into Britain, but added: “Most bogus students are economic migrants.”

As part of an overhaul of the immigration system, the Government introduced a tougher regime this year for students wishing to come to Britain. Applicants from outside the EU must prove that they have enough money in the bank to support themselves for the duration of their course, prove their previous educational credentials and be vouched for by a recognised educational institution.

Institutions that apply for a licence to teach foreign students are vetted by the UK Border Agency. Staff have to report to the Government if a foreign student fails to turn up for a course, misses lectures or changes to another course.

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