The UK government has declared sweeping immigration reforms that will both increase financial requirements for international students and open new pathways for graduate entrepreneurs, even as it moves to shorten post-study work rights.
New charges for international students
International students will need to show £1,529 per month in London and £1,171 outside London to cover living costs—significantly higher than current thresholds from November 11, 2025.
At the same time, graduates will gain the opportunity to switch directly to the Innovator Founder visa, allowing them to establish businesses in the UK without relying on the now-closed Start-up visa route.
Stay of only 18 months after graduation
Under the same reform package, the Home Office has confirmed that international students completing their degrees in the UK will only be allowed to stay for 18 months after graduation, cutting the current two-year Graduate Route visa.
The new policy, part of legislation introduced in Parliament this week, will take effect for bachelor’s and master’s graduates applying on or after January 1, 2027. PhD graduates, however, will continue to receive a three-year post-study stay.
An impact assessment published alongside the legislation estimated that the change could reduce annual visa applications by around 12,000, with a combined £50 million drop in government revenue from fees and surcharges.
Explaining the move, Home Office Minister Lord David Hanson said the decision was driven by data showing that “too many graduates are not progressing into graduate-level employment, which the Graduate Route was designed to facilitate.”
He added that the aim is to ensure graduates “transition into skilled jobs and contribute more meaningfully to the UK economy.”
Stricter English language standards
The Home Office has also outlined stricter English language standards for most migrant categories, requiring applicants for Skilled Worker, Scale-up, and High Potential Individual (HPI) visas to demonstrate B2-level proficiency—equivalent to A-Level English—from January 8, 2027.
While the reforms are expected to raise the cost of studying in the UK, they also offer new entrepreneurial and professional pathways for international talent.
Visa holders who switch to the Innovator Founder route will be required to meet their endorsing body at 12 and 24 months to prove business progress or risk having their visa shortened.
