Chancellor restores two-year post-study visa for some graduates – Research Professional News

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Budget 2026: Extended rights for “high compliance” institutions as international fee levy impact assessment published

The government has announced in the autumn budget that it will restore two-year visas for graduates of universities with strong enough student employment outcomes

In the 2026 budget document, published today, the Treasury promised to ensure the immigration system “supports a dynamic labour market”, such as by increasing the duration of the graduate visa from 18 months to two years at high-performing providers

The visa length had been set at two years until May last year, when it was cut by six months with the changes due to come in from January 2027

“The government will…increase the duration of the graduate visa to two years for graduates from high compliance universities where there are strong labour market outcomes,” the document states

Declining visa applications

There has been a steady decline in the number of international student visa applications since tighter immigration rules were introduced at the start of 2024, with August 2026 figures down by 32 per cent compared with 2023

Universities, which have blamed Home Office policies for dissuading applicants, are reliant on income generated by fees from <a href="https://jiuniversity.com/new-oecd-data-underlines-growing-competition-for-graduate-level-international-students/” title=”New OECD data underlines growing competition for graduate-level international students”>international students to make up for losses on research activity and teaching of domestic students

Research Professional News has approached the Home Office for further information on how it will define “high-compliance” universities

Nick Hillman, director of the Higher Education Policy Institute, said: “We know the Home Office has in the past considered relaxing the rules for Russell Group institutions, but any changes must not be limited to them alone because their graduate employment rates rest as much on their reputation for research as on the quality of their courses

“It would have been better if the budget had included measures to help more students than this initiative—for example, by reconsidering student maintenance support.”

Favour Samuel, president of the National Union of Students, said expanding the visa only for some institutions “does nothing but increase the confusion surrounding this scheme”

Talent visas

Elsewhere in the budget document, the government said it wanted to tighten the immigration system for low and medium-skilled people while improving the offer to international talent

It said the Global Talent pathway had allowed over 100 R&D-intensive businesses to support “the world’s best scientists and engineers to come to work in UK industry”

“To go further in attracting the world’s best graduates, the government will expand the High Potential Individual 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,” the government said

Speaking in the House of Commons, chancellor John Healey said: “Our country is one of the most innovative in the world. We have top ranking universities, vibrant startups and deep capital markets.”

Levy impact

The announcements come as the Department for Education published the impact assessment for its forthcoming levy on international students. The policy, which will see higher education institutions pay a £925 annual fee for each international student they recruit above an allowance of 220, has also been criticised by universities

According to the government analysis, the levy will generate less revenue than had initially been expected. This is predominantly due to lower-than-expected student recruitment forecasts, and “the inclusion of the student allowance in the final revenue estimates”, the DfE said. 

At the same time, estimates of income losses to the sector as a result of the policy have increased from £900m over three years to £1bn over the same period following “improvements” in the modelling

In the three years from its introduction in 2028-29, the DfE says it expects the levy to generate £1.34 billion in revenue for the government. Over the same period, the loss to universities will be just over £1bn, the modelling suggests

Source: www.researchprofessionalnews.com