On 28 October 2026, John Healy unveiled the new budget. In this article we summarise the key immigration-related commitments.
For a general overview of the budget statement, see our article here.
With this budget, the Government aims to ensure the immigration system supports a dynamic labour market and innovative firms. The Government states an ambition to deliver the most pro-business migration system in Europe for highly skilled workers.
Skilled Worker salary requirements
Skilled Worker salary requirements will change from Spring 2027, following recommendations made by the Migration Advisory Committee. The recommendations to be implemented are:
- The occupation-specific minimum salary thresholds will be reduced from the median to the 25th percentile of wages for eligible occupations;
- The general salary threshold will be uprated based on 2026 wage data;
- The salary thresholds will be updated annually using the latest ONS wage inflation data from the Annual Survey of Hours and Earnings (ASHE);
- The new entrant discounts will be rolled into a single figure for those studying, recently graduated, or in professional training; and
- The PhD discount will be removed.
Longer curtailment period for some skilled workers
The Government has promised to allow the 'highest skilled workers' to have a visa curtailment period of up to six months, with implementation in 2027. The budget statement suggests the duration will vary depending on the length of time the individual worked in their previous highly paid job.
Although this change may benefit some individuals, it may also introduce significant complexity.
National Living Wage and National Minimum Wage
On 1 April 2027, the National Living Wage will increase by 3.9% to £13.21 per hour. The National Minimum Wage will increase by 3.9% to £11.27 per hour for 18- to 20-year-olds, and by 3.9% to £8.31 per hour for 16- and 17-year-olds and eligible apprentices.
The new rates will need to be applied to sponsored workers from 1 April 2027, as the sponsored role must comply with the National Minimum Wage requirements.
High Potential Individual (HPI) visa expansion
The HPI route will be expanded to applicants with eligible qualifications from the top 150 global universities. This is a significant increase from the 82 institutions currently recognised. The budget doesn't specify which rankings will be used to determine the expanded list.
The yearly cap of 8,000 applications will rise proportionately.
Graduate visa extension from 18 months to two years
The Graduate visa length will be two years for people who graduate from high-compliance universities where there are strong labour market outcomes.
This would maintain the status quo for some university graduates, since the length of permission granted to bachelor's and master's degree students is due to be reduced from two years to 18 months for applications made on or after 1 January 2027.
Although no exact timeframe is stated in the budget, it seems likely that this measure will need to be implemented by 31 December 2026 to avoid inconsistencies in the length of permission granted to students from the targeted universities.
Global Talent visa expansion
UK Research and Innovation (UKRI) will work with organisations across UK regions to identify additional R&D-intensive businesses in the Industrial Strategy priority sectors that could act as host organisations on the endorsed funder pathway of the Global Talent route. These businesses should be recognised by Spring 2027.
Changes to Immigration Skills Charge and Certificate of Sponsorship fees as taxable benefits in kind
The Finance Bill 2026‑27 will include provisions confirming that an employer's payment of the Immigration Skills Charge (ISC) or a Certificate of Sponsorship (CoS) fee is not treated as a taxable benefit in kind.
The change will apply to payments made on or after 28 October 2026.
Read our article here for more information on the employment tax implications of the October 2026 budget.
Conclusion
These changes are broadly positive, signalling the UK's aim to attract and retain top international talent, as well as making some sensible adjustments to the salary criteria for work routes. However, the Skilled Worker curtailment and Graduate route permission length provisions will introduce further complexity into the immigration system.
