UK immigration changes ‘significant’ for universities and business

The new rules, outlined in a detailed statement published on 14 October, will introduce a number of significant changes affecting graduates and those applying for certain work visas, including raising English language requirements for foreign workers and reducing the period for international students to stay after graduation to 18 months.

Foreign nationals applying for a skilled worker, scale-up or high potential individual (HPI) visa will be required to achieve a level B2 in reading, writing, speaking and listening English, which is one level up from the current expected B1 standard, equivalent to GCSE. This change will take effect from 8 January 2026, maintaining the pre-existing requirement to be tested at a Home Office-approved provider and to have results verified as part of the visa application process.

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Shara Pledger, an immigration expert at Pinsent Masons, said the timing of the announcement – less than three months before the compulsory higher English language requirement comes into force – did not give applicants relocating to the UK for work much time to prepare. “Applicants and employers are recommended to check the requirements carefully to ensure no delays with visa processing or refusals,” she said.

The new requirement will apply only to lead applicants making their first applications – and any subsequent extensions – but will not affect those that have already applied for working visas under the existing B1 requirement. While the May 2025 immigration white paper also indicated that a new English testing requirement would be introduced for some work visa dependants, the January 2026 changes are not drafted to include this.  

In another significant change, the period of time that international students are allowed to stay in the UK after completing either a Bachelor’s or Master’s level degree will be reduced from two years to 18 months. There will be no such changes for PhD students, who will still be allowed to stay in the UK for up to three years post-study.

Although this change will be written into the rules from November 2025, the new shortened graduate route will not take effect until 1 January 2027, giving employers and students more time to adjust, said Pledger. “Those currently enrolled in study or starting very soon can take comfort from learning that graduate applications made in 2025 and 2026 will continue to benefit from two years' status,” she said, but warned that the change may “impact [applicants’] eligibility for some vacancies” in the near future.

The new rules follow the publication of a government white paper in May which proposed a number of changes to reduce net migration in the UK. Although official data indicates the level of net migration to the UK decreased to 431,000 by the end of December 2024, the government says this figure is still significantly above historic levels and has been partly driven by an increase in overseas recruitment, particularly of lower-skilled workers.

To counter this trend, the government is aiming to double the number of people currently on the Global Talent route, which promotes skilled and high-achieving workers in specific fields including technology and academia. From November 2025 this will expand to include more opportunities for architects and winners of prestigious prizes.

The new rules also target entrepreneurial talent, with some changes taking effect almost immediately. From 25 November, international students that are currently studying at UK universities will be permitted to carry out self-employed activities once they have made an application for an Innovator Founder visa and it has been endorsed by an approved body, even if the application remains under consideration.

The government has also said that international students will be required to meet higher financial requirements from the 2025-26 academic year in a move that appears designed to reduce the number of international students applying to study at less prestigious universities.

The government’s white paper earlier this year partly attributed the UK’s high net migration to the “rapid increase in sponsored study visas at lower-ranked education institutions”. Home Office data suggests that UK visas for universities globally ranked between 601 and 1,200 increased by 49% between 2021 and 2023, whereas visas for top 100 universities fell by 7% over the same period.

As expected, the government confirmed that it will also increase the immigration skills charge paid by employers to 32%, with the parliamentary process to facilitate this process taking place later this week.