Changes to visa salary rules announced in the Budget should make it easier for smaller businesses and employers outside London to sponsor skilled workers from overseas, according to Skylar McKeith, Head of Immigration at London law firm Mackrell LLP.
Supporting documents published alongside the Budget on 28 October confirm that the Government will implement the Migration Advisory Committee’s recommendations on visa salary requirements from spring 2027.
Occupation-specific minimum salary thresholds will be reduced from the median to the 25th percentile of wages, and the general threshold will be uprated using 2026 wage data.
Thresholds will then be updated every year using the latest ONS wage data. New entrant discounts for those who are studying, have recently graduated or are in professional training will be levelled into a single figure will be levelled into a single figure, while the discount for PhD holders will be removed.
Skylar said: “Overall, I welcome the direction of these proposals. Salary requirements have been a barrier to sponsorship, particularly for smaller businesses and employers outside London.
“Moving occupation-specific thresholds to the 25th percentile should make it easier to recruit skilled workers at salaries that reflect the role and local market.
“However, the general salary threshold will still matter, so this will not mean lower requirements for everyone.”
On the move to annual updates, she added: “Annual updates should keep thresholds better aligned with wages, provided employers receive sufficient notice and clear transitional arrangements. Businesses need to be able to plan recruitment and salary budgets with confidence.”
The Budget also confirmed that the most highly skilled workers will be given a visa curtailment period of up to six months from 2027, allowing them longer to find a new job if their employment ends. The length of the period will depend on how long they worked in their previous, highly paid role.
Elsewhere, the High Potential Individual visa will be expanded to graduates of the top 150 global institutions, with a proportional increase to the cap.
The Graduate visa will also be extended from 18 months to two years for graduates of high-compliance universities with strong labour market outcomes.
Skylar said: “These changes are a sensible recognition that salary alone is an imperfect measure of talent.
“Giving eligible workers longer to find another sponsored role should also help the UK retain skills when employment ends.”
However, she cautioned that the real impact of the reforms would only become clear once the detail is published.
“Whether they go far enough will depend on the detail,” said Skylar. “Visa costs and sponsorship charges also influence whether employers recruit internationally and whether talented people choose the UK, as does uncertainty about future rules.
“Removing the PhD discount could work against the wider aim of attracting talent, while the university-based Graduate visa distinction will need clear and fair criteria.”
Employers who sponsor overseas workers, or are considering doing so, can contact Mackrell’s immigration team for advice on how the changes may affect their recruitment plans by speaking to Skylar by calling 0207 240 0521 or emailing skylar.mckeith@mackrell.com
