UK Graduate Visa: Two-Year Extension for Select Graduates

The UK Budget delivered on 28 October 2026 includes a package of immigration measures aimed at skilled workers, graduates and employers. The government describes the changes as targeted relief, and most of them require amendments to the Immigration Rules before they take effect. Current rules continue to apply until then.

Longer period to find a new job

Under the current rules, a sponsored worker who loses their job usually has 60 days before their visa is curtailed. The Budget proposes that the highest skilled workers can access a curtailment period of up to six months to find a new sponsor or switch to another immigration status. The length of the period is expected to depend on how long the worker held their previous highly paid job. The Budget does not define “highest skilled” or “highly paid”, and the change is not expected to apply to every Skilled Worker visa holder. Implementation is planned for 2027.

Two-year Graduate visa for some universities

The government had planned to shorten the Graduate route to 18 months. The Budget partly reverses this: the visa would stay at two years for graduates of “high-compliance universities” with strong labour market outcomes. The Budget does not say which universities qualify, how labour market outcomes will be measured, or when the change starts. Students and graduates should not assume that their university qualifies until official criteria are published. The High Potential Individual route is also set to expand, giving more graduates of leading overseas universities a way to work in the UK, though no criteria or numbers have been published.

Salary requirements and employer costs

For Skilled Worker sponsorship, the Budget confirms a review of occupation-specific salary requirements, with reductions from spring 2027 in sectors with acute recruitment difficulties. The general salary threshold, currently £41,700 for many workers, is planned to rise in line with 2026 average wages. New figures have not been announced. Employers also get a tax clarification. New legislation will confirm that payments of the Immigration Skills Charge and the Certificate of Sponsorship fee are not a taxable benefit in kind for payments made on or after 28 October.

What this means in practice

• Sponsored workers: The 60-day period still applies today. Do not count on six months until the rules change and you meet the conditions.
• Graduates and students: Check the official list of qualifying universities once it is published before planning around two years.
• Employers: Keep current right-to-work and sponsor reporting duties unchanged, and watch for the new salary thresholds before setting 2027 budgets.
• Everyone: Rely on the Immigration Rules and Home Office guidance in force on the date of your application, not on Budget announcements.

Official Sources & Legal Verification

Details of the measures are covered by Pinsent Masons and Nara Solicitors. The Budget 2026 document published by HM Treasury is the official source for the exact wording.