The UK Government announced important changes to the immigration system as part of the 2026 Budget, published on 28 October 2026. The new measures mainly affect the Skilled Worker, Graduate Visa, High Potential Individual (HPI) and Global Talent visa routes.
The Government aims to make it easier for highly skilled workers, international graduates and researchers to come to the UK, while also helping employers recruit the skilled staff they need.
Some of the announced changes are expected to come into effect in 2027, while the implementation dates for others have not yet been confirmed.
So, what changes can people expecting to work, study or continue their careers as skilled professionals in the UK look forward to?
Expected implementation date: Spring 2027
Under the current rules, the minimum annual salary for a Skilled Worker visa is generally £41,700. However, some occupations may require a higher salary.
Under the Government’s proposed changes, the salary requirements set for individual occupations are expected to be reduced. This could allow some employers to recruit overseas workers at lower salaries.
At the same time, the general minimum salary threshold of £41,700 is also expected to increase. This means the new rules will not necessarily reduce salary requirements for every occupation.
Changes will also be made to New Entrant and PhD salary discounts.
The salary discounts available to students, recent graduates and people undertaking professional training will be combined into a single New Entrant discount. Salary discounts based on a PhD qualification will be removed.
The new general salary threshold, updated occupation-specific salary rates and transitional arrangements have not yet been announced.
Expected implementation date: 2027
People working in the UK on a Skilled Worker visa may have their immigration permission shortened by the Home Office if they lose their sponsored employment.
Under the current system, where applicable, the remaining visa period is usually reduced to 60 days. During this time, the individual may need to find a new sponsor, apply for another suitable visa or leave the UK.
Under the proposed changes, the Government plans to give the highest-skilled sponsored workers up to six months to find a new job.
The length of this period will depend on how long the individual worked in their previous highly paid role.
The new arrangement will not automatically apply to everyone holding a Skilled Worker visa. Further details about which workers will qualify and how the period will be calculated will be announced later.
Expected implementation date: 2027 – Exact date not yet announced
The Graduate Visa allows international students who have successfully completed a bachelor’s or master’s degree in the UK to remain in the country and work after graduation without needing employer sponsorship.
Under the existing rules, the Graduate Visa period for bachelor’s and master’s graduates will be reduced from two years to 18 months for applications made on or after 1 January 2027. The three-year period for PhD graduates will remain unchanged.
However, in the 2026 Budget, the Government announced that it would introduce an exception for certain universities.
Under the proposed changes, graduates of universities with high levels of compliance with immigration rules (high-compliance) and strong graduate employment outcomes will be eligible for a two-year Graduate Visa.
The universities that will qualify under the new arrangements have not yet been announced.
The criteria used to assess universities and the date from which the two-year period will apply will also be confirmed at a later stage.
Expected implementation date: Not yet announced
The High Potential Individual (HPI) visa allows graduates of leading universities around the world to work in the UK without needing a job offer or employer sponsorship.
The Government announced in the 2026 Budget that it plans to expand the HPI visa route to eligible graduates of the world’s top 150 universities.
The application cap will also be increased in proportion to this expansion. Under the current rules, the HPI route has an annual cap of 8,000 applications. The new cap has not yet been announced.
The Home Office will announce further details about the new university list and when the expansion will take effect.
Expected date: Spring 2027
The Global Talent Visa is designed for individuals recognised as leaders or potential leaders in science, technology, research, engineering and other eligible fields who wish to work in the UK.
As part of the 2026 Budget, the Government plans to expand the role of businesses involved in Research and Development (R&D) within the Global Talent visa system.
UK Research and Innovation (UKRI) will work to identify additional R&D companies operating across different regions of the UK and in sectors covered by the Government’s Industrial Strategy.
The aim is to allow more research-intensive businesses to act as eligible host organisations under the Global Talent visa’s Endorsed Funder pathway.
Expected application date: Payments made on or after 28 October 2026
The Government has announced a new tax measure covering the Immigration Skills Charge (ISC) and Certificate of Sponsorship (CoS) fees paid by employers for sponsored workers.
Under the proposed rules, these employer-paid fees will not be treated as a taxable benefit in kind for the employee.
The aim is to ensure that these payments do not create additional income tax liabilities for employees or the related additional National Insurance liabilities for employers.
Planned period: 2027–2028
The Government has announced a new investment aimed at changing the current accommodation system for people seeking asylum.
During the 2027–2028 financial year, £150 million in capital investment will be allocated to new large-scale accommodation sites for asylum seekers.
This investment forms part of the Government’s plan to end the use of hotels to accommodate asylum seekers.
The Budget announced on 28 October 2026 includes new measures affecting the UK immigration system, particularly highly skilled workers, international university graduates and researchers.
Under the Skilled Worker route, changes to salary requirements are planned, along with longer periods for certain workers to find new employment after losing their jobs. The Graduate Visa and HPI routes will also be expanded, while more Research and Development businesses are expected to take part in the Global Talent visa system.
Tax relief for certain sponsorship fees paid by employers and new investment in asylum accommodation are also among the measures announced in the Budget.
Not all of these measures had come into force as of 29 October 2026. Further details of the changes planned for 2027 will be confirmed through future updates to the Immigration Rules, Home Office announcements and relevant legislation.
Anyone planning to work, study or employ sponsored workers in the UK should make sure they follow the rules in force at the time of their application.
Legal disclaimer: This article is for general information only. Most of the measures announced in the 2026 Budget are not yet in force; the final rules will be confirmed through changes to the Immigration Rules and Home Office announcements. Each case should be assessed individually before any action is taken.
IAA Immigration Advisor
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Lex Legal Limited is an international legal consultancy firm that located in the heart of London. Our areas of expertise and services include legal advice globally as well as immigration consultancy.
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W1H 5PW
London, England
+44 7739 699 968 (Mobile)
+44 20 3988 0575 (Landline)
contact@lexlegal.com
