The UK’s 2026 Budget has confirmed a set of immigration changes due in 2027 — covering the route to settlement (ILR), the Graduate visa, the salary threshold for work visas, and a new High Potential Individual scheme — though several key decisions, including the ILR reform itself, are still pending.

In short

  • The UK’s immigration reform package takes effect in March-April 2027, except for the Graduate visa — its rules change from 1 January 2027.
  • The ILR qualifying period may rise from 5 to 10 years for most sectors, and to 15 years for low- and medium-skilled workers — this isn’t yet a confirmed decision.
  • The Graduate visa will shrink from 2 years to 18 months for applications filed from 1 January 2027.
  • The £41,700 work visa salary threshold will rise after March-April 2027, tracking average wage growth nationally.
  • The window to find a new sponsor after a company’s licence is revoked may extend from 60 days to 6 months for highly skilled workers.

When the New Rules Take Effect: March-April 2027

The government plans to introduce the bulk of the new immigration rules in spring 2027, though some changes — such as the Graduate visa update — will take effect earlier, from 1 January 2027. An announcement was originally expected before the end of 2026, but that timeline has slipped: a final decision is now promised for spring 2027.

The package touches several areas at once — conditions for business, how universities handle international students, and rules for applicants receiving benefits. At the time of the 2026 Budget announcement, part of this remained undecided: the government pushed back the date for announcing details without abandoning the reform itself.

ILR: The Route to Settlement May Stretch to 10-15 Years

The qualifying period for Indefinite Leave to Remain (ILR) is proposed to rise from the current 5 years to 10 years for most sectors. For roles classed as low- or medium-skilled — care workers among them — the period under discussion is longer still, at 15 years. For healthcare overall, the base period stays at 10 years, with scope for extension. A separate proposal would lengthen the timeline further for applicants receiving state benefits, though exact figures for that group haven’t been named.

These changes remain a proposal out for public consultation following the 2025 White Paper, and must go through a formal consultation process before being confirmed: the government had promised a final version by the end of 2026, but pushed it back — a decision is now expected after March 2027. That means current ILR timelines still apply for now, and the gap between sectors exists only as a proposal, not a finalized rule.

Still just a proposal

The longer ILR timeline (10 years for most, 15 for low- and medium-skilled roles) isn’t a confirmed decision — it’s up for consultation. Current timelines stay in place until the outcome is announced after March 2027.

Graduate Visa: Duration to Shrink From 2 Years to 18 Months

Right now, the Graduate visa gives graduates 2 years in the UK after finishing their studies. Under the plans being discussed, that period would shorten to 18 months.

The switch hinges on the application date. If the visa application is submitted by 31 December, the graduate still gets the full 2 years. Applications filed from 1 January onward, once the new rules start, fall under the shorter 18-month period.

The purpose of this visa is to give graduates time to find their footing in the UK labour market — explore job options, start a business or go self-employed, and plan their next steps in the country. That’s the function the government is preserving even as it trims the length of the window attached to it.

Graduate Visa Duration: Before and After

How long a graduate can stay depends on the application date.

  • Time allowed after graduationold terms apply if you apply by 31 December
Application date is what counts

The Graduate visa’s length depends on the date you apply, not your graduation date: apply by 31 December for 2 years, from 1 January it’s 18 months.

High Potential Individual Scheme: A New Route for Graduates

The UK government intends to introduce a High Potential Individual (HPI) scheme, opening additional routes for talented graduates from around the world — people who studied at leading overseas universities and want to live and work in the UK.

Talent doesn’t have to be academic: the examples given include influencers, dancers, and people from the music industry — any field where someone has achieved genuine standing could count as grounds for the scheme.

the examples given include influencers, dancers, and people from the music industry — any field where someone has achieved genuine standing could count as grounds for the scheme

A university graduate job-hunting in the UK during the Graduate visa period

Work Visa Salary Threshold: An Increase After 2027

The minimum salary threshold for a work visa currently stands at £41,700. The 2026 UK Budget, which touches on immigration changes, confirms the government intends to revisit this figure.

The reason is rising average wages over 2026: the current threshold will be tied to updated wage data, pushing it higher for many categories of workers. No exact new figure has been given yet — the Budget only signals the direction of change, not a specific number. The increase takes effect once the new rules come into force, in March or April 2027.

For employers, there’s one practical takeaway: sponsorship isn’t going to get cheaper over time. A rising overall salary threshold means companies need to carefully reassess every cost tied to a sponsor licence — well before the new figure is officially announced.

An employer and employee discussing the salary threshold for a sponsored work visa
Don’t bank on costs going down

The work visa salary threshold will rise after March-April 2027, tracking average wage growth. Employers should budget for this ahead of time.

Sponsor Licence Revocation: Time to Find a New Employer Extends to 6 Months

Right now, if a sponsoring company’s licence is revoked or a worker’s visa is cancelled, the worker gets a 60-day notice. Within that window, they must either switch to another visa category, find a new sponsor, or leave the country — the system allows no other options.

The government considers this window too tight: 60 days isn’t enough time to find a job and arrange new sponsorship, which has pushed some people toward claiming asylum instead of making a legal transition, requesting fee deferrals, or extending their status through FLR. The proposal is to extend the window from 60 days to 6 months for highly skilled and highly paid worker categories, giving them real time to settle with a new employer or sort out another immigration status. Other categories would still keep the 60-day window.

which has pushed some people toward claiming asylum instead of making a legal transition, requesting fee deferrals, or extending their status through FLR

The change is tied to the broader reform timeline of March-April 2027, when the new legislation is expected to take effect.

Time to Find a New Sponsor After Licence Revocation

Highly skilled, highly paid workers would get a longer window under the proposal.

  • Window to switch to a new sponsorother categories remain at 60 days
Six months instead of two

For highly skilled, highly paid workers, the window to find a new sponsor after a licence revocation would extend from 60 days to 6 months. Other categories would stay at 60 days.

Immigration Skills Charge: New Payment Rules From 28 October

A new payment arrangement for the immigration skills charge and the certificate of sponsorship (CoS) fee applies to payments made on or after 28 October. New legislation confirms these employer payments won’t count as a taxable benefit-in-kind for the employee — no extra tax arises from them.

The choice of 28 October as the cutoff date points to something else: the skills charge and CoS fee are set to rise, with a tax element built into the new amount.

The choice of 28 October as the cutoff date points to something else: the skills charge and CoS fee are set to rise, with a tax element built into the new amount

Frequently asked questions

Do I need to do anything right now if the new rules aren’t finalized yet

Until the new rules are confirmed, current conditions apply — today’s ILR timelines, the two-year Graduate visa, and the existing salary threshold. There’s no solid basis for changing your application strategy in advance: exact figures for most of these points haven’t been set and still need to go through consultation before taking effect.