UK Immigration Policy: Key Updates Following the October Town Halls

Key Highlights

Changes to Settlement (Indefinite Leave to Remain (ILR)): The government is consulting on a new “earned settlement” model which proposes increasing the default qualifying period for settlement from five years to ten years. This consultation is open until 12th February 2026.

Salary Thresholds: The general salary threshold for international workers is set at £41,700. Discounts may apply for certain groups, such as “new entrants” (including recent UK graduates), for whom a lower threshold of £33,400 applies for up to four years.

Graduate Visa Duration: Starting 1st January 2027, the permitted stay on a Graduate visa will reduce from two years to 18 months for most graduates, though PhD graduates will continue to receive three years.

English Language Requirements: For the Skilled Worker, High Potential Individual, and Scale-up visas, the English language requirement will increase from B1 to B2 level starting 8th January 2026.

Digital Right to Work Checks: The government is introducing mandatory digital ID to prove a person’s right to work by the end of the current Parliament. These checks will also be extended to cover gig economy and zero-hours workers.

Immigration Skills Charge: On 16th December 2025, the Immigration Skills Charge increased by 32% to £1,320 per person per year for large or medium employers. This funding is designated for upskilling the domestic workforce.

Apprenticeship Funding: From January 2026, the government will stop funding Level 7 apprenticeships (equivalent to a master’s degree) except for apprentices under the age of 22.