In brief
- From 28 October 2026, employer payments of the Immigration Skills Charge and Certificate of Sponsorship fees are to be free of income tax and National Insurance, subject to the Finance Bill 2026-27.
- Skilled Worker going rates are expected to move from the median to the 25th percentile from spring 2027, with no exact date; current rules apply until the Immigration Rules change.
- The High Potential Individual route is to cover the top 150 global institutions, but no start date or list has been published.
- A two-year Graduate visa for graduates of high-compliance universities is announced, with no start date or criteria yet.
- A six-month curtailment period for highly skilled workers is planned for 2027, and Global Talent host organisations are to expand by spring 2027.
The Chancellor delivered the Budget on 28 October 2026. It included several immigration measures. Only one takes effect from that date, and it still needs legislation. The rest are announcements, and the detailed rules are still to come.
What applies from 28 October 2026
Tax treatment of sponsorship costs
The Government says it will legislate in Finance Bill 2026-27 so that an employer's payment of the Immigration Skills Charge or a Certificate of Sponsorship fee is not a taxable benefit in kind. A benefit in kind is a non-cash benefit from an employer that is normally taxed. The change is to apply to payments made on or after 28 October 2026. The date that matters is the date of payment, not the date of the visa application.
- A matching National Insurance exemption is also expected.
- Other immigration-related costs stay subject to the normal tax rules.
- The fees themselves have not changed. The Certificate of Sponsorship fee is currently £525.
- The change is not yet law. It depends on the Finance Bill being enacted.
Employers should also consider the position that applied to earlier payments, before the new treatment takes effect.
Announced, with rules and dates still to come
Skilled Worker going rates
A going rate is the minimum salary set for each occupation code. The Budget indicates that from spring 2027 these will move from the median to the 25th percentile of earnings, following Migration Advisory Committee recommendations. This would reverse the April 2024 increase. No exact date has been given. It needs changes to the Immigration Rules, so employers should keep applying the current requirements until then. The general salary threshold, currently £41,700, is to be uprated using 2026 earnings data. Reports also suggest the new entrant discounts may be simplified, but the detail is not confirmed.
See our guide to the Skilled Worker visa.
Curtailment for highly skilled workers
Curtailment means the Home Office shortens a person's permission to stay, for example after a job ends. The Government says it will work towards a curtailment period of up to six months for the most highly skilled workers, varying with how long they held their previous highly paid job. Implementation is expected in 2027. The salary or skill test has not been published, so it will not apply to every Skilled Worker.
High Potential Individual route
The Budget says the route will be expanded to graduates of the top 150 global institutions, with a proportional increase to the annual cap. No start date, final university list or new cap figure has been announced.
Graduate visa
Under rules already made, the Graduate visa is due to fall from two years to 18 months for most non-doctoral graduates applying from 1 January 2027. The Budget says it will be set at two years for graduates of high-compliance universities with strong labour market outcomes. No start date has been announced, and it is not clear how these terms will be assessed or which universities will qualify. Current guidance says a Graduate visa cannot be extended. See also our page on the Student visa.
Global Talent
UKRI will work with organisations across the UK to identify more research-intensive businesses in Industrial Strategy sectors to act as host organisations on the endorsed funder pathway, by spring 2027. This does not change the rules for individual applicants. See our Global Talent visa page.
Status at a glance
| Measure | Status | Timing |
|---|---|---|
| Tax treatment of ISC and CoS payments | Applies to payments from 28 October 2026, subject to the Finance Bill | In effect from 28 October 2026 |
| Going rates and threshold uprating | Announced | Spring 2027, no exact date |
| Six-month curtailment | Announced | 2027 |
| Global Talent host expansion | Announced | By spring 2027 |
| HPI top 150 list | Announced | No date |
| Two-year Graduate visa exemption | Announced | No date |
Salary thresholds, Graduate visa length, High Potential Individual eligibility and curtailment periods stay as they are until the Home Office publishes a Statement of Changes to the Immigration Rules. No new visa fees or Immigration Health Surcharge changes were announced.
Sponsors should keep their duties under review. See our page on sponsor licence compliance.
How Garth Coates Solicitors can help
We advise employers, graduates and skilled workers on sponsorship and visa routes. If you would like to understand how these announcements may affect your organisation or plans, please request a consultation.
This article is general information and was correct on 3 November 2026. It is not legal advice on your circumstances; immigration rules and fees change often. For advice on your case, request a consultation.
