Autumn Budget 2026 – Immigration changes

Although these changes are likely to be expanded on in a future Statement of Changes by the Home Secretary, as is usually the case when it comes to amendments to the Immigration Rules, the budget has provided a key outline of how these changes align with the wider financial considerations laid out by the Chancellor. We have provided an overview of the key changes below:

Introducing Migration Advisory Committee (MAC) recommendations on visa salary requirements

In April 2024, the salary requirement for the Skilled Worker route was subject to significant reform, where the occupation-specific going rate for sponsorship under the Skilled Worker route would be based on the median Annual Survey of Hours and Earnings (ASHE) data for the role, rather than the 25^th percentile rate (as had been the case previously). 

This resulted in a significant increase in the required salary level for employment, and in December 2025, a review conducted by the MAC stated that the previous 25^th percentile occupation-specific threshold would be sufficient to protect against the risk of undercutting the pay of domestic workers, whereas the general salary threshold would be able to focus on the overall reduction of net migration. The MAC also recommended that the New Entrant discount be set at a single rate, and that the existing discount for applicants with PhDs should be removed.

The budget has now confirmed that the government will be following the MAC’s recommendations on the visa salary requirements, which will include the following changes:

• Reducing occupation-specific minimum salary thresholds from the median to the 25^th percentile of wages;
• Uprating the general threshold based on 2026 wage data;
• Annually updating salary thresholds using the latest ONS wage inflation data; and
• Introducing a single figure for the New Entrant discount, and removing the PhD discount.

The exact effect will depend on the specific updated figures, with the policy document providing that the recommendations will be implemented in Spring 2027. However, it is likely to represent a positive movement in the accessibility of sponsorship for Skilled Workers across the UK, with a system that is more reflective of general existing labour market conditions.

Extension of visa curtailment period to six months

The curtailment period for the ‘highest skilled workers’ is being increased from a standard period of 60 days under the current immigration rules up to a period of six months, with a stated aim of providing skilled workers with more time to find a new job after they have left their role. It is provided that the exact duration of the curtailment period will depend on how long that the worker has worked in their previous role.

It is unclear from the policy document whether ‘highest skilled workers’ is referring to workers sponsored on the Skilled Worker route generally, or if there is a cut-off in terms of the job skill level or salary. However, this presents a welcome change from the current curtailment period of 60 days. Following the curtailment of a sponsored visa under the present rules, it could be seen as extremely stressful for a worker to have to immediately look for another willing sponsor under the Skilled Worker route, or explore alternative visa options, to allow them to remain in the UK. Allowing these workers more time to explore alternative roles, following the curtailment of their visa, will not just benefit the workers, but will also benefit the employers who will now have a wider pool of talented workers to recruit from.

Expansion of the High Potential Individual (HPI) visa

The government will be expanding the HPI visa route to include the top 150 global institutions. This is a substantial increase from the current list of 80 eligible institutions, with a proportional increase to the number of applications per year from the current limit of 8,000.

This presents an increased focus on the HPI visa route, following the proposed changes under the Immigration White Paper in May 2025, as we have previously covered. With a stated aim of ‘attracting the world’s best graduates’, the increased availability of the route for a larger range of global graduates provides more flexibility for these individuals to come to the UK outside of sponsored employment routes, but the impact will largely depend on the increase of the overall cap for applications.

Permission under the Graduate route extended to 2 years for eligible universities

The duration of the Graduate visa will be increased from 18 months to two years for individuals who graduate from high-compliance universities where there are strong labour market outcomes.

This change could be seen as puzzling, as the Home Office only announced in October 2025 that the grant of permission under the Graduate route would be reduced (for applications made on or after 01 January 2027) from a period of 2 years to 18 months. It remains to be seen how this change will be implemented, but it appears likely to result in confusion for those applying under the route in 2027 onwards.

Global Talent visa expansion

As part of an effort to drive regional research and development led growth, UK Research and Innovation (UKRI) will look to identify additional businesses in Industrial Strategy sectors who can act as host organisations under the endorsed funder pathway of the Global Talent visa route by spring 2027. This change is introduced in combination with a support of additional £1 billion funding for UKRI in innovation clusters across the UK, to further accelerate growth in this key area.

Under the Global Talent route, applicants who are working on a research grant or award from a funder approved by UKRI may be eligible for a fast-track endorsement, which provides a decision within 2 weeks, as compared to the current 5 week turn-around for applications for endorsement that require peer review.

The Global Talent route is an ideal route for individuals who want more freedom under the visa than is provided under a sponsored work route. The continued expansion of the route provides an attractive option for the world’s brightest minds who are looking to come to the UK and contribute to our economy.

Changes to tax treatment of the Immigration Skills Charge and Certificate of Sponsorship fees

In an overlap of immigration and tax changes under the budget, the government is introducing legislation in the Finance Bill 2026-27 so that an employer’s payment of the Immigration Skills Charge or Certificate of Sponsorship fee is not treated as a taxable benefit in kind, and this will apply to payments made on or after 28 October 2026.

The payments for Immigration Skills Charge and the assigning of a Certificate of Sponsorship represent a key cost of sponsorship for an employer, and this cost cannot be passed onto the sponsored employee under the current sponsorship guidance. These costs no longer being treated as a taxable benefit in kind presents a welcome change for employers, as covered by my colleague John Carter from our Tax and Trust Compliance team below:

The key benefit for employers is therefore an overall reduction in the cost of sponsoring affected employees. Removing the benefit-in-kind treatment should remove the associated employment tax cost that could otherwise arise when the employer meets these mandatory sponsorship charges. It should also simplify the tax treatment of the payments and provide greater certainty that they can be borne as genuine employer costs without creating a taxable benefit for the employee. 

Conclusion

The effect of the changes to immigration law stated in the budget will likely be seen in the coming months as they are implemented by the Home Office; but they also represent some key areas of progression for applicants looking at personal immigration options, as well as those under sponsored work visas.

However, there are some key areas that are not covered in the budget, and raise further questions regarding the Home Office’s overall current policies, including the Home Secretary’s announcement today concerning the earned settlement framework. We will be looking at how these different elements interact in the near future, as part of our wider coverage of the new earned settlement model.

Keep up to date with our Budget coverage