Financial requirements will rise starting in November 2025, even though the Graduate Route visa will be reduced from two years to 18 months starting in January 2027.
Reduced enrolment and financial strains could further affect UK universities as a result of the now-confirmed reforms and the foreign student tax. Image: Unsplash.
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According to Home Office-confirmed regulations, international students who get degrees in the UK will only be permitted to remain in the nation for 18 months following graduation.
Although it was initially declared in the UK government’s immigration white paper in May, the decision to shorten the Graduate Route visa’s duration from two years has since been codified into law.
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Yesterday, the new laws were presented to parliament.
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
According to an impact assessment included with the legislation, the change to the visa is anticipated to have a “modest impact” on demand, resulting in an estimated 12,000 fewer applications each year.
“The announcement may also have short-term effects,” it stated.
Reduced visa fees and immigration surcharge revenue of about £23 million from the graduate route and £27 million from the student route are among the financial ramifications, according to the report.
Bachelor’s and master’s degree holders who apply on or after January 1, 2027, will be affected; PhD holders will still be eligible for the current three-year 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.”
According to earlier rumours, the labour government’s efforts to match migration with labour market demands would bind graduate visas to skill-based jobs.
Reduced enrolment and financial strains could further affect UK universities as a result of the now-confirmed reforms and the foreign student tax.
International students receive business benefits while financial requirements increase.
The new regulations will also make it more difficult for international students to prove they have enough money to sustain themselves while they are in school.
According to the UK Council for International Student Affairs, the monthly rates will be £1171 outside of London and £1529 in London starting on November 11, 2025.
Additionally, the maximum accommodation offset has been raised to £1529. This allows students who have paid a deposit for their UK housing to demonstrate lower maintenance funds.
In other places, holders of student visas who have finished their degree in the UK and are choosing to become “Innovator Founders” will be permitted to start their own company.
According to the Home Office, this takes the place of a comparable clause that allowed applicants to convert to the Start-up visa route, which is currently closed to new applicants. The modification will go into effect on November 25 of this year.
Switchers risk having their visas revoked if they don’t meet with their endorsing body at 12 and 24 months to show that their business is progressing.
The UK government’s decision to increase the immigration skills charge by 32% is likely to cause concern among UK employers who sponsor skilled foreign workers, even though it has recently hinted at plans to make it easier to attract global talent, such as doubling the number of applications submitted annually under the High Potential Individual (HPI) route from 4,000 to 8,000.
Migrants must adhere to new English standards.
Additionally, starting on January 8, certain migrants—the majority of whom are graduates or asking for skilled visas—will need to possess A-Level grade English.
The current B1 standard, which is roughly similar to GCSE, will be replaced by B2 level English for applicants seeking HPI, Scale-up, and Skilled Worker visas.
According to Lord Hanson’s statement, “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.”
“Future revisions to the Immigration Rules will incorporate additional modifications to the English language requirements outlined in the White Paper, including the addition of such requirements for dependents in work and study routes.”
