UK Budget reshapes study and work visas: two-year Graduate visa kept for compliant universities, HPI opened to top 150
United Kingdom · Study · Budget announced 2026-10-28 (statement of intent, not yet in force)
| Country / region | United Kingdom |
|---|---|
| Category | Study |
| Date | Announced in the Autumn Budget on 2026-10-28; most measures planned for 2027 |
| What happened | HM Treasury's Budget 2026 policy paper set out five measures touching study and work visas. (1) The Graduate visa duration will be set at two years for graduates of "high-compliance universities where there are strong labour market outcomes", against the planned cut to 18 months for applications from 2027-01-01. (2) The High Potential Individual (HPI) visa is expanded to applicants with eligible qualifications from the top 150 global institutions, with a proportional increase to the cap; no implementation date is given. (3) From spring 2027 the government implements Migration Advisory Committee recommendations: occupation-specific minimum salary thresholds fall from the median to the 25th percentile; the general threshold is uprated on 2026 wage data; thresholds are updated annually using ONS ASHE data; new-entrant discounts are levelled into a single figure; and the PhD discount is removed. (4) The highest-skilled sponsored workers get up to six months to find a new job after their sponsorship ends, against a curtailment period that is generally 60 days, with implementation in 2027 and a duration that varies with time spent in the previous highly paid role. (5) Employer payments of the Immigration Skills Charge and Certificate of Sponsorship fees made on or after 2026-10-28 are not treated as taxable benefits in kind, subject to the Finance Bill. The Budget also confirmed the UK will join Erasmus+ in 2027. |
| Impact on applicants | Do not treat "two years kept" as settled. As of 10-29 the GOV.UK Graduate visa page still says two years for applications on or before 2026-12-31 and 18 months from 2027-01-01; the Budget defines neither "high-compliance" nor how "strong labour market outcomes" will be measured. Two practical conclusions: first, applying before 2026-12-31 remains the only certain route to two years, so final-year undergraduates and current master's students should work back from that date rather than from graduation; second, university choice now carries another variable — a provider's sponsor compliance rating may decide how long you can stay after graduating, not just whether its recruitment is capped. On the work side the direction is not simply looser: occupation thresholds fall while the general threshold rises, so employer costs may not drop, and removing the PhD discount is a clear loss for those moving from a doctorate into a sponsored job. |
| Source | HM Treasury, Budget 2026 policy paper (2026-10-28) ↗ Note on scope: statements of intent, not in force; cross-checked against GOV.UK, where the Graduate visa remains 18 months for applications from 2027-01-01 |
Source: HM Treasury, Budget 2026 policy paper (2026-10-28) ↗ · Last verified: 2026-10-29 · For reference only; not application or legal advice. Always check the official source for current rules.
FAQ
What did the UK Budget change for international students?
Five measures. The Graduate visa will be set at two years for graduates of high-compliance universities with strong labour market outcomes, against a planned cut to 18 months from 2027-01-01. The HPI visa opens to the top 150 global institutions with a proportional cap increase. From spring 2027, occupation-specific salary thresholds fall to the 25th percentile, the general threshold is uprated on 2026 wage data, thresholds are updated annually using ASHE data, new-entrant discounts are levelled into one figure, and the PhD discount is removed. The highest-skilled sponsored workers get up to six months to find a new job in 2027. Employer payments of the Immigration Skills Charge and CoS fees from 2026-10-28 are not taxable benefits in kind, subject to the Finance Bill.
Is the Graduate visa 18 months or two years from January 2027?
As of 2026-10-29 the GOV.UK Graduate visa page still says two years if you apply on or before 2026-12-31 and 18 months if you apply on or after 2027-01-01. The Budget's two-year commitment is a statement of intent that needs a Statement of Changes to the Immigration Rules, and neither "high-compliance" nor "strong labour market outcomes" has been defined. Until the detail is published, applying before 2026-12-31 remains the only certain route to two years.
Where does this information come from?
HM Treasury, Budget 2026 policy paper, published 2026-10-28, cross-checked against the GOV.UK Graduate visa page on 2026-10-29. Note on scope: statements of intent, not in force; most measures are planned for 2027 and the detail will follow in a Statement of Changes to the Immigration Rules.
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