International students who complete a degree in the UK will only be able to stay in the country for 18 months after graduating, under changes confirmed by the Home Office.
The decision to cut the Graduate Route visa from two years was first announced in May in the UK government’s white paper on immigration, but has now been enshrined in legislation.
The new laws were introduced to parliament yesterday.
This change is informed by data showing that too many graduates are not progressing into graduate-level employment which the Graduate route was created to facilitate access to
Lord David Hanson, UK Home Office
An impact assessment published with the legislation said the change to the visa is expected to have a “modest impact” on demand, with an estimated annual drop of 12,000 applications.
“Short-term impacts may also arise following the announcement,” it said.
It said the financial implications would include reduced visa fee and immigration surcharge revenue of around £23 million from the graduate route, and £27m from the student route.
The change will apply to applications submitted on or after 1 January 2027 by bachelor’s or master’s graduates — PhD graduates will continue to receive the existing three years of leave.
“This change is informed by data showing that too many graduates are not progressing into graduate-level employment which the Graduate route was created to facilitate access to,” read a statement by Lord David Hanson, minister of state for the Home Office.
“It is intended to ensure that those who remain in the UK transition into graduate level jobs and properly contribute to the UK economy.”
Earlier speculations had suggested graduate visas might be tied to skill-based jobs under the Labour government’s plans to align migration with labour market needs.
The now confirmed changes, combined with the international student levy, could further impact UK universities through declining enrolments and financial pressures.
Financial requirement rises, international students gain business perks
Under the new rules, the financial requirement for international students will also increase, to demonstrate they have sufficient funds to support themselves during their studies.
From 11 November 2025, the amounts will be £1529 per month in London and £1171 outside of London, according to the UK Council for International Student Affairs.
The maximum accommodation offset, which allows students to show less maintenance funds if they have paid a deposit for their UK accommodation, has also been increased to £1529.
Elsewhere, student visa holders who have completed their degree in the UK and are switching to the ‘Innovator Founder’ route will be allowed to establish a business.
This replaces a similar provision for switching to the Start-up visa route, which is now closed to new applications, the Home Office said. The change will take effect on 25 November this year.
Those who make the switch will need to meet with their endorsing body at 12 and 24 months to demonstrate progress with their business, or their visa may be cut short.
While the UK government has recently signalled plans to make it easier to attract global talent, including doubling annual applications under the High Potential Individual (HPI) route from 4,000 to 8,000, its decision to raise the immigration skills charge by 32% is likely to raise eyebrows among UK employers who sponsor skilled international workers.
Migrants must meet new English standards
Moreover, some migrants, most of them graduates or applying for skilled visas, will be required to have A-Level standard English, effective from 8 January.
Applicants for Skilled Worker, Scale-up, and HPI visas will need to reach B2 level English, a step up from the current B1 standard, which is roughly equivalent to GCSE.
“The change will help to ensure that those who wish to build their lives in the UK are better able to integrate into life in the UK,” read the statement by Lord Hanson.
“Other changes to English language requirements set out in the White Paper, including the introduction of such requirements for dependants in work and study routes, will be included in future changes to the Immigration Rules.”
