Here are the key immigration takeaways on how it plans to get there:
From Spring 2027, the government plans to implement the Migration Advisory Committee’s (MAC) recommendation to reduce Skilled Worker occupation-specific thresholds (“going-rates”) from the median to the 25th percentile. With a strategy driver being to improve the visa system regionally to ensure visa criteria better reflect labour market conditions across the UK. This proposal is largely a reversal to the increases introduced in April 2024.
At the same time, the government intends to increase the Skilled Worker general salary threshold, currently £41,700, in line with 2026 wage data. As applicants under the route must meet both the going-rate and the general salary threshold, the reduction in going rates may have limited impact in practice.
New Entrants must currently be paid at least £33,400 and 70% of the relevant going rate for their role. In line with MAC’s recommendation, the government plans to replace this with a single New Entrant salary threshold of £33,400.
Salary discounts for applicants with relevant PhDs will be removed.
From 2027, the government plans to give the highest-skilled workers up to six months to find a new role after leaving their job. Full eligibility criteria are yet to be seen, but the length of the period appears likely to depend on how long the individual worked in their previous high-paying role.
Last year’s Immigration White Paper announced that the Graduate visa would be shortened to 18 months, with effect from 1 January 2027. The Budget now partially softens this: graduates of “high compliance” universities with strong labour market outcomes will be eligible for a two-year Graduate visa.
Building on the changes made in November 2025, HPI eligibility will be widened further to include graduates of the top 150 global institutions, with a proportionate increase to the route’s cap.
The government has reaffirmed its commitment to expanding the endorsed funder pathway. UK Research and Innovation will identify further R&D-intensive businesses, with participation planned from Spring 2027.
These are positive steps towards a clearer strategy for attracting international talent and skills. However, the potentially significant changes to Skilled Worker salary thresholds and the move to a two-tier Graduate route signal the government’s continued focus on controlling migration.
Our Immigration team can discuss these proposals with you and consider strategies for the future.
