New visa rules come into effect

The Home Office has finally announced the dates for a number of changes to the UK Immigration Rules, previously proposed in May 2025, which will affect how employers hire and retain overseas talent.

Several routes have been tightened, higher English standards have been put in place, new flexibility has been introduced for student founders, and visa lengths for Graduates will be shortened.

Graduate route shortened

The Graduate visa, which allows foreign students who have graduated from UK higher education institutions to stay in the UK after completing their studies, will be shortened to 18 months rather than two years. The three-year length for PhD graduates remains unaffected. This change will apply to Graduate visa applications made after 1 January 2027. In the future, employers who rely on graduate recruitment will need to move faster to identify and sponsor staff they want to keep.

If you employ graduates on this route, you will need to review their visa expiry dates and decide early whether to transition them into a sponsored role. Delays could mean losing valued team members.

A smoother path for student founders

From 25 November 2025, students who want to start a business in the UK will be able to move directly from a Student visa to the Innovator Founder route without having to leave the country.

This change gives early-stage entrepreneurs and university spin-outs a clearer route to stay and build their companies here. If your business supports student founders or works with incubators, make sure potential applicants understand the criteria and prepare their endorsement applications early.

Expanded eligibility for the High Potential Individual route

The number of eligible institutions allowing qualification for the High Potential Individual (HPI) visa will increase in 2026.   The visas issued, however,  will be capped to 8000 a year. The route will allow exceptional global graduates to work in the UK without sponsorship, providing a more affordable alternative to sponsorship for highly educated employees.

Changes to the Seasonal Worker route

Seasonal Worker visas will now include revised “cooling-off” periods before individuals can return to the UK, limiting Seasonal Workers to spend no more than six months working in the UK during any rolling ten-month period. For horticulture and poultry production sectors, this could make workforce planning more complex.

Employers in these industries should review staffing schedules and ensure contracts reflect the new restrictions.

Higher English Language Requirement

Applicants under the Skilled Worker, Scale-up, and High Potential Individual (HPI) routes will need to demonstrate English language proficiency at CEFR Level B2 from January 2026. Existing visa holders do not need to upgrade their English language requirements where they are extending in the same routes.

Skills Charge Increase

The Immigration Skills Charge, applicable only to Skilled Worker and Senior Specialist Global Business Mobility visas, will increase by 32% on 16 December 2025.   

Employers keen to avoid the increase would need to submit visa applications as soon as possible.

What should you do now?

Acting early will help employers keep the people they need and stay ahead of the changes:

• If you work with student founders, prepare for the new option to switch straight to the Innovator Founder visa from November 2025.
• Check when Graduate visas are due to expire and plan sponsorships early after the route shortens in 2027.
• Seasonal employers should update staffing plans to reflect the new limits on Seasonal Worker visas,
• All sponsors should get ready for higher English language requirements from January 2026.
• To avoid extra costs, submit Skilled Worker and Global Business Mobility applications before the Immigration Skills Charge rises by 32% in December 2025.

If you need support reviewing your visa processes or planning ahead for the new rules, our business immigration solicitors are on hand to give you practical, business-focused guidance. Get in touch today.