UK Budget 2026 Cuts Skilled Worker Going Rates and Widens the HPI Visa

The UK Government used Budget 2026, published by HM Treasury on 28 October 2026, to announce a package of visa reforms aimed at highly Skilled Workers and international graduates. The headline change hits the Skilled Worker route. From spring 2027, occupation-specific minimum salaries, known as going rates, will fall from the median wage to the 25th percentile. The Budget also widens the High Potential Individual (HPI) visa to graduates of the top 150 global universities, restores a two-year Graduate visa for some UK universities, and promises a longer job-search window for top earners who lose a sponsored role.

None of these changes is law yet. The Home Office still needs to publish a Statement of Changes to the Immigration Rules with exact figures and start dates. Here is what the Budget confirms, what today's rules say, and what you should do now.

Five visa measures in the Budget

The Budget document lists the immigration measures under a stated aim: to "deliver the most pro-business migration system in Europe for high-skill workers." The Treasury says the government has already tightened rules for low and medium-skill workers and now wants to improve the offer for international talent. The five measures are:

• Lower going rates from spring 2027. The government will implement Migration Advisory Committee (MAC) recommendations on salary requirements. Occupation-specific thresholds drop from the median to the 25th percentile of wages.
• A new general threshold. The general salary threshold will be uprated using 2026 wage data, and all thresholds will then update every year using the latest ONS Annual Survey of Hours and Earnings (ASHE).
• Simpler salary discounts. New entrant discounts merge into a single figure for people studying, recently graduated, or in professional training. The PhD discount ends.
• Up to six months to find a new job. The highest skilled sponsored workers will get a visa curtailment period of up to six months if sponsorship ends, with the length linked to how long they worked in a previous highly paid job. Implementation is planned for 2027.
• Wider graduate routes. The HPI visa expands to the top 150 global institutions with a proportional rise in the cap. The Graduate visa will last two years for graduates of high-compliance universities with strong labour market outcomes.

skilled worker visa: what changes for your salary

Today, a Skilled Worker applicant must usually earn the higher of two figures. The first is the general threshold of £41,700 a year. The second is the going rate for the job's four-digit occupation code, set out in the going rates table on GOV.UK.

The Budget lowers the second figure. A going rate pegged to the 25th percentile sits below the median for the same job, so many roles will need a smaller salary to qualify. Employers outside London and the South East, plus smaller firms, stand to gain most.

Do not expect the headline number to fall. The general threshold will be uprated using 2026 wage data, so the £41,700 floor is set to rise, not drop. For roles where the going rate already sits below £41,700, the general threshold stays the figure you must beat. Lower going rates help most in occupations where the median rate sits above the general threshold.

Discounts for new entrants and PhD holders

Current rules let some applicants earn between 70% and 90% of the going rate, with a floor of £33,400 a year. New entrants get 70% of the going rate if they are under 26, on a Student or Graduate visa (or were in the last two years), or working toward a recognised professional qualification or chartered status. PhD holders get 80% (STEM) or 90% (other subjects) of the going rate when the PhD is relevant to the job.

From spring 2027, the new entrant discounts become one single figure, and the PhD discount disappears. The Budget does not give the new percentage. If you plan to rely on a PhD discount, try to secure your Certificate of Sponsorship and apply under current rules before the change starts.

A longer grace period after job loss

When a sponsored job ends today, the Home Office usually shortens your permission to 60 days, giving you a short window to find a new sponsor, switch routes, or leave. The Budget promises up to six months for "the highest skilled workers." The exact length will depend on how long you held your previous highly paid role. The Treasury has not defined the salary or skill level needed, so watch for the detailed rules in 2027.

Graduate visa: two years for some universities

Under current GOV.UK guidance, a Graduate visa lasts two years if you apply on or before 31 December 2026 and 18 months if you apply on or after 1 January 2027. PhD graduates keep three years. The application fee is £937, plus the Immigration Health Surcharge, usually £1,035 for each year of your stay.

The Budget partly reverses the cut. Graduates of "high compliance universities where there are strong labour market outcomes" will get two years. The government has not published how a university qualifies, or when the two-tier system starts.

If you finish an eligible UK course in time to apply by 31 December 2026, you still get two years under current rules, wherever you studied. Ask your university when the Home Office will be told you have completed your course, because you must be in the UK on a Student visa and apply before your Student visa expires.

HPI visa: top 150 universities and a bigger cap

The HPI visa lets recent graduates of top overseas universities live and work in the UK without a job offer or sponsor. Current rules on GOV.UK and in Appendix High Potential Individual set out the main points:

• The visa lasts two years, or three years with a PhD or other doctorate.
• You must hold a qualification at UK bachelor's level or above, awarded in the last five years by a university on the Global Universities List for your award year.
• Applications are capped at 8,000 a year, with each allocation year running from 1 November to 31 October.
• You need English at CEFR level B2 and at least £1,270 in savings held for 28 days in a row, unless you have held a valid UK visa for 12 months.
• Costs include a £252 Ecctis qualification check, an £880 application fee, and the health surcharge (£2,070 for two years).
• You get only one HPI visa, and you are not eligible if you already held a Graduate visa.

The Budget expands eligibility from the top 100 to the top 150 institutions and raises the cap in proportion. Neither the new cap figure nor a start date appears in the Budget. A new allocation year opened on 1 November 2026, and GOV.UK has already published the eligible university list for awards between 1 November 2026 and 31 October 2027. If your university sits on today's list, apply under the current cap rather than waiting for the expansion.

What stays the same

The Budget leaves the tighter rules for lower and medium-skilled roles in place. Under current guidance, medium-skilled occupations qualify for the Skilled Worker route only when listed on the immigration salary list or the temporary shortage list, with limited exceptions for some extensions. The Budget measures target high earners and top graduates, not lower-paid roles.

What you should do now

• If you hold a job offer: Ask your employer for the four-digit occupation code and check the current going rate. If your salary already clears today's thresholds, proceed now. If you fall short only on the going rate, ask whether a spring 2027 start date works better.
• If you rely on the PhD discount: Apply before the spring 2027 rules start, because the discount is due to end.
• If you are a UK student finishing in 2026: Aim to apply for your Graduate visa by 31 December 2026 to lock in two years.
• If you graduated abroad in the last five years: Check the Global Universities List for your award year. If your university is listed, start your Ecctis check and English evidence now.
• If you are an employer: Review roles where the median going rate priced you out. Plan sponsor licence and Certificate of Sponsorship budgets for spring 2027.
• Everyone: Watch the GOV.UK Immigration Rules updates page for the Statement of Changes, which will confirm figures and dates.

Treat the Budget as a direction, not a final rulebook. Until the Home Office publishes the detail, apply under the rules in force on the day you submit.

Sources

• HM Treasury, Budget 2026 (published 28 October 2026)
• GOV.UK, Skilled Worker visa: your job and salary requirements
• GOV.UK, Skilled Worker visa: lower salary rules and discounts
• GOV.UK, Graduate visa
• GOV.UK, High Potential Individual visa
• GOV.UK, Immigration Rules Appendix High Potential Individual
• GOV.UK, Immigration Rules updates