The Budget, announced on 28 October 2026, set out a number of immigration measures with important implications for UK employers seeking to recruit workers from overseas.
These measures have been presented as a key part of the government's drive to deliver “the most pro-business migration system in Europe for highly skilled workers.”
Key upcoming changes for employers to be aware of
Proposed changes to salary thresholds for sponsored workers
The government has committed to implementing several important changes to minimum salary thresholds recommended by the Migration Advisory Committee from Spring 2027, including:
- Updating the minimum salary thresholds for each SOC Code annually using the most recent Office for National Statistics Annual Survey of Hours and Earnings wage inflation data.
- Updating the general minimum salary threshold using 2026 wage data.
- Importantly, reducing occupation-specific minimum salary thresholds from the median to the 25th percentile of wages.
- Removing the PhD salary discount.
- Levelling new entrant discounts into a single figure for those studying, recently graduated or in professional training.
Graduate visas
Eligible individuals who have recently graduated from a UK university with a Bachelor’s or Master’s degree who apply for a graduate visa on or after 1 January 2027, will usually be granted immigration permission for 18 months, reduced from the current two-year period. However, the government announced that there will be an exception for individuals graduating from high compliance universities with strong labour market outcomes, who will continue to be granted graduate immigration permission for two years. PhD graduates will continue to be granted three years' immigration permission. Further details of the universities which will qualify for this exception have not yet been published.
High Potential Individual route
Individuals who have graduated from a top overseas university are able to apply for two years' immigration permission under this route. The scope of the High Potential Individual (HPI) route is due to be widened to include applicants with eligible qualifications from the top 150 institutions across the world. This represents a significant increase to the number of eligible institutions as the existing scheme only allows applicants who have graduated from the top 80 institutions. However, there will also be a proportional increase in the cap on potential applications.
Changes to curtailment of immigration permission for highly skilled workers
At present, if a sponsored worker ceases to work for their sponsor, the sponsor must notify the Home Office. The Home Office may then write to the individual to curtail their leave. Where permission is curtailed, the individual will usually be given 60 days, or the period remaining on their visa if shorter, in which to leave the UK or submit a new valid immigration application.
Under changes planned for 2027, the government will work towards allowing the “highest skilled workers” to benefit from a visa curtailment period of up to six months, depending on the length of time they have spent in their previous highly paid job. The length of the curtailment period is expected to depend on how long the individual worked in their previous highly paid job. This should give qualifying sponsored workers longer to find another role before having to leave the UK. However, the government has not yet defined “highest skilled workers” or “highly paid jobs”.
Overall impact for employers
Taken together, the immigration measures set out in the 2026 Budget may create new opportunities for employers seeking highly skilled international talent. They also, however, reinforce the need for businesses to plan ahead and assess the immigration and sponsorship implications of overseas recruitment at an early stage.
