PSW Visa Costs Explained: Why Staying for 2 Years Costs £2,000+

The Upfront Tax

You receive the email from your university: "We have notified UKVI of your successful course completion." You log onto the UK Government website. You are ready to claim your 2 years of freedom.

You know the application fee is £822. You have £1,000 in your checking account. You click "Pay." The website redirects you to the IHS portal. The total amount due is £2,892.

You don't have the money. Your Student Visa expires in 5 days. If you don't pay this amount in full today, you become an illegal overstayer.

The True Cost of the Graduate Route

The UK Government does not give immigration freedom away for cheap. You are hit with two massive costs, both of which must be paid upfront, in full, on the day you apply.

1. The Application Fee: £822 This is the flat administrative fee to process your biometrics and issue the BRP card.

2. The Immigration Health Surcharge (IHS): £2,070 Just like the Student Visa, you must pay upfront for the National Health Service. In February 2024, the IHS rate was increased to £1,035 per year. Because the Graduate Route is a 2-year visa, you must pay: £1,035 x 2 = £2,070. (If you are a PhD student getting a 3-year visa, you must pay £1,035 x 3 = £3,105).

Total Cost: £2,892

You must have almost £3,000 in liquid cash sitting in your bank account just to hit "Submit" on the application form.

Unlike the Student Visa, there is no maintenance funds requirement. The Home Office does not ask to see bank statements proving you have £9,000 for living costs. They assume you will get a job. But the upfront administrative cost is brutal.

What If You Get a Sponsored Job in Month 2?

Here is the most painful part of the Graduate Route. You pay the £2,892. You get your 2-year visa. In Month 2, a major tech company offers you a job and insists on switching you immediately to a Skilled Worker Visa.

You apply for the Skilled Worker Visa. You must pay the application fee and the IHS again for the new visa. Does the Home Office refund you for the 22 months of Graduate Route IHS you didn't use? No. It is non-refundable if you switch visa categories. You just lost £2,000.

The Strategy: If you are interviewing with a Tier-1 sponsor (like a Big Four accounting firm) during your final university months, try to delay your visa application. If they offer you the job before your Student Visa expires, you can switch directly to the Skilled Worker Visa and completely skip the £2,892 Graduate Route trap. If you must use the Graduate Route, you need to start saving that £3,000 in January of your final year.