Budget: longer graduate visas at ‘high compliance’ universities

The UK government is set to retain two-year graduate visas, but only for those at high-performing universities.

The length of time international students can stay and work post-graduation was set to be cut for all from two years to 18 months at the start of next year but the 2026 Budget document indicates that exemptions will be introduced.

It says the graduate visa will last two years “for graduates from high compliance universities where there are strong labour market outcomes”.

This is part of a package of measures designed to “tighten the immigration system for low and medium-skill individuals while improving the offer to international talent”.

An extension to the number of institutions covered by the “High Potential Individual” visa has also been announced.

The Treasury says the government will broaden the criteria for the visa “to support applicants with eligible qualifications from the top 150 of the world’s best institutions, with a proportional increase to the cap under the scheme”. Previously only 80 top-ranked universities were included.

Giving his Budget statement in the House of Commons, chancellor John Healey lauded the UK’s “top-ranking universities, vibrant startups and deep capital market” – but scarcely mentioned higher education.

Other changes affecting the sector include removing the PhD discount from visa salary requirements.

This implements a key recommendation of the Migration Advisory Committee after its review of the skilled worker visa last year found “no reasonable rationale” for lowering the threshold for those with PhDs.

Healey also announced a series of pro-innovation and pro-growth measures including a commitment for the National Wealth Fund and British Business to give out an additional £20.4 billion of capital to back UK strategic industries and places. Much of Healey’s speech was focused on rolling out measures to support what he called a “new wave of devolution”.

The dedicated £20.4 billion will support the previously announced Research & Innovation (UKRI) investment in innovation clusters across the UK, which the Treasury said it will concentrate “on “big bets,” channelling funding towards priority clusters across the country, in alignment with the Industrial Strategy sectors” – as experts had predicted. 

To drive regional growth, the Treasury said that the funder will work with organisations in regions to “identify additional Research & Development-intensive businesses in Industrial Strategy sectors.” 

These “could act as host organisations on the endorsed funder pathway of the Global Talent visa route by spring 2027”, it said. The efforts to attract graduates and skilled workers build on the Global Talent visa-endorsed funder pathway, which has already been expanded to more 100 R&D-intensive businesses, according to the Budget document. 

Healey also announced that he was “fully funding the Defence Investment Plan including through capital reprioritisation across Whitehall”. The Treasury added that the money will be raised through “proactive management of capital pressures and reprioritisation of capital budgets”. 

Alicia Greated, executive director of the Campaign for Science and Engineering, welcomed the pro-innovation sentiment in the Budget and said that “this budget brings stability and no additional large changes” to research funding. 

However, “The devolution of R&D funding and reprioritisation across Government to fund defence could have significant impact on the research landscape,” she warned. 

 “We are concerned that with departments having to make savings in their capital expenditure budgets, R&D may end up being disproportionately targeted.” 

Hetan Shah, chief executive of the British Academy, said: “The chancellor has today set out a positive vision for growth across the regions and nations of the UK. But the government is selling this ambition short by choosing not to tackle the university funding crisis.”

He warned that “universities should be at the heart of the UK’s ambitions for an innovation nation. This Budget was a missed opportunity to tackle the growing cracks in the higher education funding system, and regional growth will likely suffer as a result of that.”

frances.jones@timeshighereducation.com