Visa & Immigration · news · 28 October 2026
UK Graduate Visa (PSW) to Stay at Two Years for High-Compliance Universities: What Nepali Students Need to Know
The Budget on 28 October 2026 said graduates of “high-compliance universities” with strong labour market outcomes will get a two-year Graduate visa, not 18 months. Here is what is confirmed, what is not, and how Nepali students should plan.
Is the UK Graduate Visa Going Back to Two Years?
The UK Budget on 28 October 2026 announced a two-year Graduate visa for graduates of high-compliance universities with strong labour market outcomes. Other bachelor’s and master’s graduates still face 18 months for applications from 1 January 2027. No list of universities, criteria or start date has been published yet.
For some graduates, yes, but not yet. The Budget says graduates of “high-compliance universities where there are strong labour market outcomes” will get two years. For everyone else, the planned 18 months for applications from 1 January 2027 still stands. The government has not said which universities qualify or when the change starts, and it is not yet in the Immigration Rules.
Key facts
Checked against the sources cited on 28 October 2026.
- Announced
- Budget 2026, 28 October 2026: two years for graduates of high-compliance universities with strong labour market outcomesThe PIE News, 28 Oct 2026
- Current rule
- Applications from 1 January 2027: 18 months after a bachelor’s or master’s; before then, 2 yearsUniversity of Sheffield, 5 Oct 2026
- PhD
- 3 years, unchangedUniversity of Sheffield
- Which universities
- Not yet defined or listedTimes Higher Education, 28 Oct 2026
- Start date
- Not announced; needs a change to the Immigration RulesEIN, 28 Oct 2026
- Same Budget
- High Potential Individual visa expanded to graduates of the top 150 institutions worldwideEIN, 28 Oct 2026
What Did the Budget Announce About the Graduate Visa?
The Budget published on 28 October 2026 says:
“The graduate visa duration will be set at two years for individuals who graduate from high-compliance universities where there are strong labour market outcomes.”
It sits under the heading “Extending the graduate visa from 18 months to two years for eligible universities”. In plain terms, the government still plans the general cut to 18 months, but graduates of some universities would keep two years.
The Russell Group welcomed avoiding the cut for “highly compliant universities”. The Budget also expanded the High Potential Individual visa to graduates of the world’s top 150 institutions.
What Is Confirmed, and What Is Not Yet Known?
| Question | Status |
|---|---|
| Will some graduates get two years instead of 18 months? | Announced in the Budget, 28 October 2026 |
| Which universities count as “high-compliance”? | Not yet defined. No list has been published |
| What are “strong labour market outcomes”? | Not yet defined |
| When does it start, and for which applications? | Not announced |
| Is it in the Immigration Rules? | Not yet. A change needs a Statement of Changes to the Immigration Rules |
| Does the 18-month rule from 1 January 2027 still apply? | Yes, under the current rules, to bachelor’s and master’s graduates applying on or after that date |
| PhD graduates | 3 years, unchanged |
Until the Home Office publishes the rules, nobody (HOA included) can tell you which universities qualify. Treat any list that claims to name them as a guess.
The Graduate Visa Rules Today
| You apply for the Graduate visa | Bachelor’s or master’s | PhD |
|---|---|---|
| On or before 31 December 2026 | 2 years | 3 years |
| On or after 1 January 2027 | 18 months | 3 years |
| After the new rule starts, from a qualifying university | 2 years (announced; details to come) | 3 years |
The date that counts is the day you submit and pay for your Graduate visa application, not when your course starts or ends. You must apply from inside the UK before your Student visa expires, after your university has reported that you completed the course.
Full details: Graduate visa guide and how to apply for the Graduate visa.
What Could “High-Compliance” Mean?
The Budget does not say. The most likely starting point is the Home Office’s existing measures of how well a university manages its international students, but this is HOA’s reading, not a confirmed rule:
- The Basic Compliance Assessment (BCA): every licensed university is measured on visa refusal rates, enrolment and course completion.
- The Red-Amber-Green (RAG) ratings introduced in 2026 sit inside that assessment. The Home Office has said ratings will be published together once every sponsor is rated; no public list exists yet.
- “Strong labour market outcomes” suggests a second test based on what graduates go on to earn or do, which could rule out some universities even with good compliance.
HOA does not label any university as “high-compliance”, Green or Red. When the government publishes the criteria, HOA will update this post. See the UK RAG system explained.
What Should Nepali Students Do Now?
- Plan on 18 months. If you start a degree in 2027, you will almost certainly apply for the Graduate visa after 1 January 2027. Budget for 18 months unless the new rule clearly covers your university when you apply.
- Do not choose a university only for a possible two-year visa. Course fit, cost, entry requirements and job prospects matter more, and the criteria are not yet known.
- Be wary of anyone promising two years. No consultancy, agent or university can confirm two-year eligibility until the rules are published.
- Ask the university about graduate outcomes. Employment and earnings data are worth checking anyway, and may become part of the test.
- Already graduating? If you can apply for the Graduate visa by 31 December 2026, you get two years under the current rules.
Not sure which universities fit your profile? HOA’s counsellors can compare course, cost and outcomes with you, free.
How the Timing Works for Nepali Intakes
| Your course | Course ends | Likely Graduate visa application | Length under current rules |
|---|---|---|---|
| One-year master’s, January 2027 intake | Early 2028 | Early 2028 | 18 months |
| One-year master’s, September 2027 intake | Autumn 2028 | Autumn 2028 | 18 months |
| Three-year bachelor’s, September 2027 intake | Summer 2030 | Summer 2030 | 18 months |
| Master’s finishing in late 2026 | Late 2026 | Before 31 December 2026 | 2 years |
If the two-year rule is in force by the time you apply and your university qualifies, the last column would change to two years for that university’s graduates.
Other Budget Changes for Students and Graduates
Two of these were announced in this Budget. The levy is an earlier announcement, included because it affects the same students.
- High Potential Individual visa: extended to graduates of the world’s top 150 institutions, with a proportional increase to the cap.
- Skilled Worker salaries: from spring 2027, new-entrant discounts for those studying, recently graduated or in professional training are levelled into a single figure, and the PhD discount is removed. See the Skilled Worker guide.
- International student levy (announced November 2025): universities in England will pay £925 per international student a year from 1 August 2028. It is charged to the university, not to you, but may affect fees.
- Minimum wage: £13.21 an hour from 1 April 2027. See what it means for part-time work.
Frequently Asked Questions
For graduates of “high-compliance universities” with strong labour market outcomes, the Budget on 28 October 2026 says yes. Others still get 18 months for applications from 1 January 2027.
None has been named. The government has not published a definition or a list, so any list you see is a guess.
No start date has been announced. It needs a change to the Immigration Rules, which has not been published yet.
Yes, under the current rules, for bachelor’s and master’s graduates who apply on or after 1 January 2027.
Today, the date you submit and pay for your Graduate visa application. Once the new rule exists, your university’s status will matter too.
The government has not said. Compliance ratings are a likely starting point, but this is not confirmed, and no public RAG list exists yet.
No. The Graduate visa after a PhD stays at three years.
Not on that basis alone. The criteria are unknown; choose on course, cost, entry and graduate outcomes, and plan on 18 months.
PSW (post-study work) is the common name for the UK Graduate visa, which lets graduates work without a sponsor after their degree.
No. HOA’s guidance is free for students.
Key Terms
- Graduate visa (PSW)
- A UK visa that lets graduates stay and work without a sponsor after their degree.
- High-compliance university
- Term used in the 2026 Budget for universities whose graduates keep a two-year Graduate visa. Not yet defined.
- Basic Compliance Assessment
- The Home Office’s annual check on a university’s visa refusals, enrolments and completions.
- High Potential Individual visa
- A UK visa for recent graduates of top-ranked universities worldwide, expanded to the top 150 in the 2026 Budget.
Sources
Every figure on this page was checked against these sources on 28 October 2026. If an official page and this page disagree, the official page is right.
- The PIE News, UK to extend graduate visa to two years for graduates of “high-compliance universities” (28 Oct 2026)
- Times Higher Education, Budget: longer graduate visas at “high compliance” universities (28 Oct 2026)
- Electronic Immigration Network, Budget unveils reforms to create Europe’s “most pro-business migration system” (28 Oct 2026)
- The PIE News, England’s universities face £330m loss under new £925-per-international-student levy (26 Nov 2025)
- Dani Payne, Three unanswered questions about education after Budget 2026 (28 Oct 2026)
- University of Sheffield, Graduate Immigration Route (updated 5 Oct 2026)
- University of Glasgow, Graduate visa information
About This Guide
Written by House of Admissions (HOA), a UK-only education consultancy founded in 2016 with offices in Kathmandu and Pokhara. All 20+ HOA counsellors hold the British Council’s UK counsellor certification. HOA’s guidance is free to students. Reviewed by Rahul Chhetri, Director. This is admissions guidance, not immigration advice. Spotted something out of date? Tell us.
Related Guides
Choosing a University With the Graduate Visa in Mind?
A counsellor can compare course, cost and graduate outcomes with you and keep you updated when the rules are published. HOA’s guidance is free.