Autumn Budget 2026: Immigration and mobility changes – what UK employers need to know

The Autumn Budget, delivered on 28 October 2026, included significant immigration and mobility measures aimed at attracting and retaining elite talent, particularly those early in their careers, alongside tax measures to help internationally mobile talent relocate.

1) High Potential Individual (HPI) route expansion

The High Potential Individual route will be expanded to applicants with eligible qualifications from the world’s top 150 institutions, up from the current top 100, with a proportional increase to the cap under the scheme.

The HPI route lets employers recruit without sponsorship, avoiding the associated costs and administration, and where they are not yet able to meet the industry recognition requirements for the Global Talent route. Expanded eligibility should widen the candidate pool, particularly for STEM, digital, financial and professional services roles. It can also provide a pathway to sponsorship once workers become more established. These are welcome developments,

No implementation timetable has been announced for expanding the route, and the Home Office may need until early or spring 2027 to update its IT systems to accommodate the change.

The expansion targets elite candidates. Those just outside this group, in any sector whether STEM, digital or the arts, continue to face limited UK immigration options early on in their careers, when they require flexibility to establish themselves. Intentional or not, a lack of visa routes is likely to continue to be an issue, particularly in the creative industries, for exceptionally talented graduates not yet established enough for sponsorship or the Global Talent route.

As a reminder, those in the HPI route can apply within five years of being awarded their qualifying degree, so it is always worth checking if a candidate holds a degree which is on the eligible list, even if they have since completed a UK degree or entered the workforce.

2) Graduate route duration changes

From 1 January 2027 the graduate visa duration will fall from two years to eighteen months except for PhD students.

However it will remain at two years for those graduating from high compliance universities where there are strong labour market outcomes.  No definitions have yet been given of these terms. One commentator has warned that the policy risks creating a two-tier system by favouring universities in cities with strong graduate labour markets and institutions serving professions with clear employment pathways, potentially disadvantaging universities in less prosperous regions or specialist institutions such as arts universities.

Chetal Patel, Head of Immigration at Bates Wells, warned in the Times Higher Education that ‘The move may help protect the UK’s competitiveness in the international student market, but introducing different post-study work rights based on the institution attended could also create uncertainty for prospective students and their advisers.’

Shorter Graduate permission compresses the window for employers to assess performance before committing to sponsorship. Where the two-year exception applies, employers may have more time to evaluate and plan. The uncertainty around which universities qualify will affect 2027 hiring cycles and candidate decision making.

As with the HPI expansion, no implementation date has been announced, but the change could coincide with the route’s overall reduction in visa duration on 1 January 2027 or follow shortly afterwards.

3) Implementing Migration Advisory Committee recommendations on visa salary requirements

From spring 2027, the Government will implement recommendations to reshape salary thresholds as follows:

• reduce going rate minimum salary thresholds from the median to the 25th percentile of wages;
• uprate the general threshold using 2026 wage data;
• update thresholds annually using the latest wage inflation data;
• level new entrant discounts into a single figure for those studying, recently graduated or in professional training; remove the PhD discount.

Returning to the 25^th percentile of wages restores the pre-April 2024 position and is likely to be the most impactful and beneficial of the policies announced. It will benefit employers of entry level staff who qualify for the lower new entrant rate, but where the subsequent jump in minimum salary is currently unmanageable. This currently makes it difficult for sponsors to retain talented graduates after years of investment.

The Migration Advisory Committee (MAC) report indicated that even with uprating, the general threshold of £41,700 is expected to largely remain the same.

These changes will be implemented from spring 2027.

4) Extending visa curtailment to up to six months for the highest skilled workers

This policy is aimed at the highest skilled workers. It seems likely to be limited to the highest earners, although it is unclear where any salary threshold will lie. Curtailment periods may extend to up to six months for those eligible. The period will vary depending on how long the individual has worked in their previous highly paid job.

Eligible workers will have more time to find a new sponsor, recognising that it can take longer to secure a new senior role. The aim is to retain exceptional talent in the UK workforce and give these workers greater stability.

The policy may give a small number of the highest-paid workers breathing space, but its benefits may be limited: curtailment processing can already take six months or more. As travel outside the UK during the curtailment period results in the cancellation of the visa, an inability to travel may, for some, negate any benefit. It can be difficult to be sure if a curtailment letter has been issued, as they can sometimes be sent to an old address in error, leading to uncertainty for the holder. These issues must be resolved for the policy to deliver any benefit.

The changes will take effect in 2027. No date has been announced, but spring is a reasonable possibility, alongside other measures.

5) Global Talent visa – endorsed funder pathway expansion

UK Research and Innovation will work with organisations across the UK to identify additional R&D intensive businesses in Industrial Strategy sectors that could act as host organisations on the endorsed funder pathway of the Global Talent visa route. In the past year, the pathway has been expanded to enable more than 100 R&D intensive businesses to support leading scientists and engineers coming to work in UK industry. The current list of approved research organisations is here.

Expanding the endorsed funder pathway broadens access to Global Talent, a non‑sponsored route offering a flexible alternative to the Skilled Worker route. It is particularly relevant where candidates have a significant track record and where businesses are scaling R&D outside traditional academic settings, including in regions targeted for growth.

6) Tax treatment of Immigration Skills Charge (ISC) and Certificate of Sponsorship (CoS) fees

The Government will introduce legislation in a new Finance Bill 2026-27 which will clarify that employer payment of the Immigration Skills Charge or Certificate of Sponsorship fee is not treated as a taxable benefit in kind. This applies to payments made on or after 28 October 2026.

This is a welcome clarification given a lack of guidance to date on this.

7) Tax measures supporting internationally mobile talent

An administrative easement to the capital gains “exit charge” when a trust ceases to be UK resident is intended to make it easier for people with existing trusts to move to the UK more quickly, with effect for exit charges arising on or after 28 October 2026.

A mechanism is planned for double taxation relief on income received by investors from certain foreign entities where relief is currently unavailable, including US LLCs and other reverse hybrids.

This will hopefully reduce friction in senior hiring and relocations.

8) Erasmus+ participation

The UK will participate in the Erasmus+ study scheme for 2027 from 1 January 2027, with Budget provision for student loan impacts and delivery costs.

Erasmus+ participation should expand inbound and outbound student mobility, with a likely increase in graduates with UK experience and language skills. This can strengthen early talent pipelines for employers and deepen university‑industry collaboration.

5 Key Steps for Businesses to take

Businesses should consider taking the following steps:

1) Monitor updates for the revised HPI list and ensure that recruitment teams are aware of this when considering visa options for candidates.

2) Plan for earlier transitions to sponsorship for those granted a Graduate route duration to 18 months from 1 January 2027 and prepare to differentiate from those who will be still be granted 2 years.

3) Monitor updates and review budgets, recruitment and sponsorship decisions in light of the lower minimum salary thresholds.

4) Consider engaging with UKRI on endorsed funder host opportunities and consider Global Talent as an alternative to Skilled Worker.

5) Amend payroll and benefits reporting for ISC and CoS payments on or after 28/10/2026.

If you have any questions please contact us.

The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice on which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. Please contact the Bates Wells team if you require further information.