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Breaking: UK to give sponsored workers up to six months to find a new job, and two-year graduate visa for “high-compliance universities”

Budget 2026 announced a six-month curtailment period for the highest skilled workers, a two-year graduate visa for some universities and lower sponsor salary thresholds. None is law yet.

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The Budget delivered on 28 October 2026 includes several immigration announcements that matter to sponsors, sponsored workers and international graduates.

None of them is in force today. They are statements of intent, with most changes planned for spring 2027. Here is what the Budget document actually says, and what each announcement would need before it becomes a rule.

Up to six months to find a new job after curtailment

At present a sponsored worker whose employment ends typically has 60 days before their visa is curtailed. The Budget says the government "will allow the highest skilled workers to access a visa curtailment period of up to six months", with implementation in 2027.

The length of the period will vary "depending on how long they have worked in their previous, highly-paid job". The Budget does not define "highest skilled" or "highly-paid". This change would not apply to every Skilled Worker visa holder.

Graduate visa extended to two years, but not for everyone

The Budget says the graduate visa duration "will be set at two years for individuals who graduate from high-compliance universities where there are strong labour market outcomes".

The visa is due to drop to 18 months for applications from 1 January 2027. This announcement would keep it at two years for graduates of qualifying universities. But it is conditional. The Budget does not say which universities count as "high-compliance" or how "strong labour market outcomes" will be measured. Students and universities should wait for the detail before relying on the longer period.

Lower salary thresholds for sponsored workers from spring 2027

The government says it is implementing Migration Advisory Committee recommendations on visa salary requirements from spring 2027. The Budget lists five changes:

  • Occupation-specific minimum salary thresholds will drop from the median to the 25th percentile of wages.
  • The general threshold will be uprated using 2026 wage data.
  • Salary thresholds will be updated every year using the latest ONS wage inflation data (ASHE).
  • New entrant discounts will be levelled into a single figure for those studying, recently graduated or in professional training.
  • The PhD discount will be removed.

For most employers the first point is the one to watch. Moving the going rate from the median to the 25th percentile would lower the salary an employer must pay to sponsor a worker in many occupations. The Budget frames this as making "visa criteria better reflect labour market conditions across the UK".

The exact figures are not in the Budget. They will only be known when the Home Office publishes a Statement of Changes to the Immigration Rules.

High Potential Individual visa opens to the top 150 institutions

The High Potential Individual route will be expanded to applicants with eligible qualifications from the top 150 global institutions, with "a proportional increase to the cap under this scheme". No implementation date is given for this change.

Sponsorship fees will no longer be a taxable benefit

This is the one change with a start date that has already passed. The government will legislate in Finance Bill 2026-27 so that an employer's payment of an Immigration Skills Charge or Certificate of Sponsorship fee is not treated as a taxable benefit in kind. The change applies to payments made on or after 28 October 2026.

For employers who hold a sponsor licence, this removes a tax cost that could arise where the employer pays these fees on behalf of a worker. It still needs the Finance Bill to pass before it takes legal effect, but once passed it will be backdated to Budget day.

Global Talent route to grow in the regions

More businesses will be able to host Global Talent applicants under the endorsed funder pathway. UK Research and Innovation will work with organisations across the UK to identify R&D-intensive businesses in Industrial Strategy sectors that could act as host organisations on this pathway, by spring 2027. The Budget says more than 100 businesses have joined the pathway since Budget 2025.

What is not in the Budget

The document does not mention the Immigration Health Surcharge, visa application fees, settlement or indefinite leave to remain, the proposed international student levy, care worker visas or dependants. The only policy on asylum is £150 million of capital investment in 2027-28 for large accommodation sites.

When will any of this apply?

The visa changes need a Statement of Changes to the Immigration Rules, which the Home Office lays before Parliament before each change takes effect. The Budget gives spring 2027 for the salary thresholds and 2027 for curtailment. The sponsorship fee tax change needs Royal Assent to the Finance Bill.

Until then, the current rules apply. Employers should keep sponsoring at today's thresholds, and sponsored workers who lose their job should plan on the existing 60-day period.

If you sponsor workers or are planning to apply for a licence and want to understand how these changes might affect your hiring plans, book a consultation with NARA Solicitors.

Book a consultation with Nara Solicitors today.

Source: Budget 2026, HM Treasury, 28 October 2026 (official PDF). The immigration measures are at paragraphs 4.112 to 4.114, 6.15 and 6.94 to 6.97.

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