UK Scales Back Graduate Visa Duration for International Graduates from 2027

The UK Home Office has confirmed a significant change to the country’s post-study work rights for international graduates. Beginning 1 January 2027, the duration of the Graduate Route visa, which allows eligible foreign students to work in the UK after completing their studies, will be reduced from two years to 18 months. 

Students beginning their studies in January 2026 or later are expected to be among the first significantly affected. Undergraduates starting in September 2025 and Master’s students completing after January 2027 will also face the reduced 18-month term. PhD graduates will remain eligible for a three-year post-study work period, consistent with current rules.

The measure, first proposed in the government’s May 2025 immigration white paper, was included in legislative amendments tabled in Parliament on 14 October. In a statement accompanying the changes, the Home Office said the move is intended “to ensure graduates contribute effectively to the economy”, adding that “data clearly showed that many holders had not transitioned into graduate-level employment as intended.”

However, education sector representatives and migration policy analysts have voiced concern that the change could harm the UK’s competitiveness in the global higher education market, without meaningfully reducing net migration. For example, an impact assessment published with the legislation said the change to the visa is expected to have a “modest impact” on demand, with an estimated annual drop of 12,000 applications. 

Rising financial requirements

Under the new rules, the financial requirement for international students will also increase, to demonstrate they have sufficient funds to support themselves during their studies. From 11 November 2025, the amounts will be £1529 per month in London and £1171 outside of London, according to the UK Council for International Student Affairs. The maximum accommodation offset, which reduces the amount of funds a student must show if they’ve already paid for UK housing, has also been increased to £1,529. This amount, combined with tuition fees for one academic year must be held for at least 28 consecutive days before applying.

New business pathway for graduate entrepreneurs

In a move to support innovation and entrepreneurship, student visa holders who have completed their UK degree will now be able to switch to the Innovator Founder route and establish a business in the UK. Taking effect from 25 November 2025, this route will replace the now-closed Start-up visa.

Graduates who switch to the Innovator Founder route will be required to meet with their endorsing body at 12 and 24 months after approval to demonstrate progress with their business. Failure to show satisfactory progress could result in their visa being curtailed.

New measures to attract “highly skilled” talent

Moreover, as the UK government seeks to position itself as a magnet for high-skilled talent, the High Potential Individual (HPI) Route, which allows graduates from the world’s top 100 universities to work in the UK, will now be capped at 8,000 applications annually, with the goal of doubling the number of entrants from 2,000 to 4,000 per year.

In addition, the Innovator Founder Route will be broadened to create smoother pathways for international entrepreneurs seeking to launch businesses in the UK after graduation.