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Wednesday, October 28, 2026

UK government to allow two-year graduate visa for 'high-compliance' universities

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Graduates from selected UK universities will now be permitted to stay on two-year visas under updated Government plans.

The post-study visa will be extended from 18 months to two years for eligible institutions with "strong labour market outcomes", according to the Budget document.

This follows announcements made by the Labour Government in May last year to reduce the length of the visa, which permits graduates to stay and work in the UK after completing their course, from two years to 18 months.

Before the amendment comes into force in January, officials stated that students from some "high-compliance universities where there are strong labour market outcomes" can remain for up to two years.

Released following the Chancellor’s Budget speech to the Commons on Wednesday, the policy is designed to ensure the immigration system "supports a dynamic labour market".

The document also outlined an expansion of the "high potential individual" visa route to cover the top 150 global institutions as part of measures to attract "the world’s best graduates".

Nick Hillman, director of the Higher Education Policy Institute (Hepi) think tank, called the decision on the graduate visa a “mini U-turn” for some universities.

The visa will be extended from 18 months to two years for graduates from eligible universities

The visa will be extended from 18 months to two years for graduates from eligible universities (Alamy/PA)

He said: “I am always very nervous about carving out some institutions and treating them more generously than others, except where there are very solid grounds for doing so – and they do not exist in this instance.

“Linking how long international students can stay in the UK to graduate employment rates, when international students are the one group for whom we have very little data on graduate outcomes, just does not make much sense.”

Favour Samuel, president of National Union of Students (NUS) England, said “This Government is sacrificing Britain’s international reputation and world-class universities to get down an arbitrary immigration figure.

“Increasing the Graduate Route Visa to two years, but only for some universities, does nothing but increase the confusion surrounding this scheme.”

Hollie Chandler, director of strategic policy at the Russell Group, which represents some of the most selective UK universities, said: “It is encouraging to see the Government recognising the benefits that the world’s most talented international students and graduates bring to the UK.

“Avoiding the planned reduction in the length of the graduate visa for highly-compliant universities will help protect our reputation as a global study destination and maximise the contributions of these graduates to the UK workforce.

“We look forward to working closely with Government as they shape the details and implementation of this very welcome change.”

In his Budget, John Healey also announced £15 million for organisations such as the Dolly Parton Imagination Library and BookTrust to increase young children’s access to books and to help improve their readiness for school.

Sarah Ronan, executive director of the Early Education and Childcare Coalition, welcomed the funding for books.

She added: “The Government must ensure that next year’s spending review includes transformative action on childcare or it will risk undermining its ambition on economic and educational opportunity.”

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