Britain's Budget brings back the two-year Graduate visa, but only for some universities
The UK Budget of 28 October restores a two-year Graduate visa for graduates of high-compliance universities with strong job outcomes, just as the standard route drops to 18 months in January 2027. It also promises up to six months for laid-off highly skilled workers to find a new sponsor and new salary thresholds from spring 2027.
Anyone planning a degree in the UK had a cut pencilled in for January: the Graduate visa, which lets new graduates stay on and work, was due to shrink from two years to 18 months. The Budget that Chancellor John Healey delivered on 28 October walks part of that back. Two years return for graduates of high-compliance universities with strong labour market outcomes. Everyone else stays on 18 months.
So for a Portuguese student weighing offers, the choice of university now also decides how long you get to land a job afterwards. Since Brexit, anyone without UK settled status arrives on a student visa like any other foreign national, and the Graduate route is the bridge into a work contract.
The Budget does not yet say which universities qualify, or when the change starts.
More breathing room if you lose your job
The second change matters to people already working there. The most highly skilled sponsored workers who lose their job will get up to six months to find a new employer, instead of the 60 days they have now before their visa is cut short. The government says it will “work towards” this, with no firm date.
Salary thresholds
From spring 2027, London will apply the Migration Advisory Committee’s recommendations:
- occupation-specific thresholds drop from the median to the 25th percentile of wages;
- the general threshold is uprated with 2026 pay data and then updated every year;
- the new-entrant discounts for students and recent graduates merge into one;
- the PhD discount goes.
The High Potential Individual visa, for recent graduates of the world’s top universities, widens to the top 150 institutions, with its cap rising in proportion. The Budget calls the package “the most pro-business migration system in Europe for high-skill workers”.
It is the same government that, a week ago, asked every household to keep three days of supplies in the cupboard. This time the shopping list is for people who want to go and work there.
Chart: Tugadaily, with UK Government data