The UK Government is tightening the rules around the Graduate visa route as part of its wider immigration reforms.
Currently, the Graduate Visa gives individuals two or three years to work in the UK post-study, offering employers a quick and cheap way to assess international talent before committing to longer-term sponsorship. But with reforms on the horizon, this level of flexibility is set to change and employers will need to rethink how they engage and retain Graduate visa holders.
So, how will the proposed changes impact UK businesses…
- From 1 January 2027, the standard Graduate Visa will be reduced from two years to 18 months.
- PhD graduates will retain the three-year post-study work entitlement.
The implication is it shortens the window for graduates to gain UK work experience before needing to switch into a sponsored route. Many employers already find the current two-year period insufficient for graduates to reach the skill and salary thresholds required under the Skilled Worker route. With the recent hikes to those thresholds, the gap between the Graduate and Skilled Worker routes is widening, and it is therefore becoming less tenable to employ overseas graduates on a longer-term basis.
The Home Office wants to achieve faster transitions from the Graduate route to sponsored visas like Skilled Worker. But with rising salary and skill thresholds, that’s increasingly unrealistic for many graduates.
While it is positive that PhD graduates retain a three-year post-study work entitlement, this will not help employers looking to fill mid-level, early-career roles – PhD candidates typically sit well above that level in terms of experience and employment expectations.
Rock and hard place come to mind. So, what practical steps can employers take now?
- Audit your graduate workforce – identify who is affected by the shortened visa period. If sponsorship is viable, plan early. If not, prepare for exits to avoid disruption, and stay alert to discrimination and wider employment law risks.
- Review recruitment practices – communicate with hiring managers and recruiters. Will the changes expose the business later down the line? This will be difficult to navigate, so seek legal input to ensure decisions are fair and legally sounds.
- Check your sponsorship licence – make sure the business is set up to sponsor graduates transitioning onto the Skilled Worker route who meet the new thresholds.
- Communicate clearly – speak with current and prospective Graduate visa holders. Share updates and outline any support you can offer.
Should you wish to discuss any of the issues raised in this article, please contact Nicole Hambleton.