UK Visa Changes 2025: Who Pays and Who Stays?
This is the second article in our four-part series on the 2025 UK Immigration White Paper. In Part 1, we explored how the system is being reshaped around skills and the closure of the care worker route. Here, we look at the rising cost of sponsorship and major reforms to graduate and talent-focused visas. These changes will hit employers and students hard, especially those planning long-term futures in the UK.
Skilled Worker Visa
The UK Government plans to raise the Immigration Skills Charge by 32%, making it more expensive for employers to hire workers from abroad. This charge applies to every Skilled Worker visa sponsorship and must be paid annually for each worker. Large employers currently pay £1,000 per worker per year, and this will rise to £1,320. Smaller businesses and registered charities pay £364, and they will soon face a new charge of £480 per year.
The Government introduced the Immigration Skills Charge in April 2017. The aim was to encourage employers to invest in training local workers rather than relying on overseas recruitment. This fee is separate from visa application charges and can quickly add up, especially for businesses sponsoring several workers over multiple years.
Raising this charge could hit small businesses and non-profit organisations the hardest. Many employers in hospitality, social care, and construction already operate on tight budgets. If these proposals go ahead, some may stop offering sponsorship altogether, reducing job options for overseas applicants.
Graduate Visa Time Cut Short
The Government now proposes to reduce the post-study Graduate visa from two years to just 18 months. The Graduate route allows international students who complete a UK degree to stay and work without employer sponsorship. The proposed change would reduce the time they have to remain in the UK after their studies. This affects their ability to find a job or switch into a longer-term visa, such as the Skilled Worker route. For students aiming to build a career in the UK, every month matters. Cutting six months from this period could make the UK less attractive, especially as countries like Canada and Australia continue to offer generous post-study options.
How Canada and Australia Help Graduates Stay and Settle
In contrast, Canada offers international graduates a Post-Graduation Work Permit (PGWP) that lasts up to three years, depending on the length of their study programme. This permit allows full-time work with any employer, giving graduates more time and flexibility to build their careers.
Australia also provides generous options: graduates can usually stay for two to four years under the Temporary Graduate visa, with additional time for those in regional areas or holding higher qualifications. These longer post-study periods make both countries attractive destinations for international students who want to work and remain long term.
Both Canada and Australia also allow graduates to build up experience that helps them apply for permanent residence. In Canada, graduates who complete an eligible study programme and gain at least one year of skilled work experience through the PGWP can apply for permanent residence under the Canadian Experience Class stream of the Express Entry system. This route rewards Canadian work experience and gives former students a competitive edge.
In Australia, graduates use the Temporary Graduate visa to work and then apply for permanent residence through the Skilled Independent visa or the Skilled Nominated visa. These routes depend on the graduate’s occupation, work location, and total points under the General Skilled Migration system. Many students who complete their studies in Australia successfully apply to stay permanently. In contrast, the UK Graduate route does not count towards indefinite leave to remain, which may affect how students choose where to study.
Historical Development of the Graduate Route
The UK has introduced or reintroduced a post-study work route four times in the past two decades, each time reflecting shifts in political priorities and economic needs. These routes have aimed to attract international graduates, support the labour market, and maintain the UK’s competitiveness in global education.
The first scheme appeared in 2004 with the launch of the Science and Engineering Graduate Scheme (SEGS), which allowed STEM graduates to stay in the UK for 12 months. In 2007, the Government broadened access through the International Graduate Scheme (IGS), extending the opportunity to graduates across all subjects. A year later, in 2008, IGS was replaced by the Tier 1 (Post-Study Work) route, which gave graduates two years to work without sponsorship in any sector. This system remained in place until 2012, when the Government abolished it due to concerns about misuse and lack of control.
The Return of the Graduate Route and Its Future at Risk
After nearly a decade with no dedicated post-study work route, the UK reintroduced the scheme for the fourth time in 2021 under the Graduate route, allowing most international degree holders to stay for two years (or three for doctoral graduates) without employer sponsorship. This reintroduction was part of the wider Points-Based Immigration System and was intended to help the UK compete with countries like Canada and Australia.
In 2021, the UK reintroduced the post-study visa as the Graduate route under the Points-Based Immigration System, granting two years of unsponsored work permission to most graduates and three years for doctoral students. The aim was to attract global talent and make the UK a top destination for international education. Reducing the time limit now appears to be politically motivated. Ministers are likely responding to concerns over net migration figures, suggesting that some students and dependants may be using the study route as a route to long-term stay without serious employment prospects. However, there are concerns that shortening the Graduate visa risks undermining the UK’s reputation in global education and could push high-potential graduates to competitor countries.
High Potential Individual Visa
The UK Government plans to expand the High Potential Individual (HPI) route by adding more international universities to the approved list. This visa offers a strong option for recent graduates from top-ranked global institutions, as it does not require a job offer or employer sponsorship. Successful applicants can work in any sector, be employed, self-employed, or even establish a business. The visa lasts two years, or three years if the applicant holds a PhD. While the HPI visa does not currently lead directly to settlement, many visa holders use it to switch into routes like Skilled Worker or Global Talent, which do offer settlement opportunities. Between May 2022 and June 2024, around 4,500 main applicants received HPI visas, far fewer than the 200,000 Graduate visas granted during the same period. Examples of qualifying institutions include Harvard, MIT, Oxford, Stanford, ETH Zurich, University of Toronto, National University of Singapore, and the University of Melbourne. The relatively low uptake suggests that the visa’s eligibility criteria and application process remain strict despite recent efforts to broaden it.
Global Talent Visa
The Global Talent visa remains one of the UK’s most attractive immigration routes for highly skilled professionals in science, engineering, humanities, arts, and digital technology. Applicants can qualify either by securing an endorsement from a recognised body or by holding a prestigious award approved by the Home Office. The visa offers a high degree of flexibility: it does not require employer sponsorship, allows individuals to change jobs without permission, and permits freelance or self-employed work. Successful applicants endorsed under the exceptional talent category can apply for settlement after three years. Those endorsed under the exceptional promise category become eligible after five years. In recent years, this route has grown significantly in popularity. Between April 2020 and April 2023, over 17,000 individuals applied under this visa, and by the year ending September 2023, the number of grants had increased by 58% to more than 4,000. Endorsing bodies such as UKRI, Arts Council England, and Tech Nation have played a major role in the route’s development, with UKRI alone endorsing over 5,000 applicants. The Global Talent visa is now a key part of the UK’s strategy to attract and retain world-class talent.
The Innovator Founder Visa
The UKVI first introduced two major entrepreneur visas in 2013: the Start-up visa (for early-stage founders, no investment required) and the Innovator visa (for more experienced entrepreneurs with a £50,000 investment requirement). These replaced earlier routes like the Tier 1 (Entrepreneur) visa, introduced in 2008, which required £200,000 or £50,000 in qualifying investment funds, depending on the applicant’s background. Despite their purpose to attract more entrepreneurs, these routes saw limited uptake. Between 2019 and 2022, only a few hundred Innovator and Start-up visas were granted each year, and the success rates, while comparatively high in percentage, reflected low overall application numbers.
Innovator Founder Visa: Progress, Challenges, and High Entry Barriers
In April 2023, the Government launched the Innovator Founder route to simplify the system. This new visa removed the £50,000 investment requirement and merged the previous Innovator and Start-up routes. In its first year, the number of Innovator Founder visa grants rose to 494, a year-on-year increase of 88%. Another 492 Start-up visas were also granted before that route officially closed. Despite these improvements, the visa still presents difficulties. Endorsing bodies remain cautious, often requiring a proven business model, innovation, scalability, and occasionally charging high fees or demanding equity. Applicants must also meet an English language requirement at level B2, which is higher than many other UK immigration routes. Although the Innovator Founder visa offers a direct route to settlement after three years, many applicants still find it difficult to satisfy the criteria, giving this route a reputation for being one of the most demanding in the UK’s immigration system.
The UK’s talent and graduate routes are evolving—but not necessarily in favour of applicants. The next article explores a different kind of shift: stricter language rules, longer settlement timelines, and new barriers to citizenship. Head to Part 3 to see how integration and long-term residence will be redefined.