The immigration White Paper was released earlier today, and it brings with it lots of changes that will affect UK employers which sponsor migrant workers. This includes an increase on skills (and salary) thresholds and immigration costs which employers will need to consider, along with increased English language requirements for migrants.
Immigration White Paper indicates huge changes for UK sponsors – what does this mean for employers?
The long-awaited immigration White Paper "Restoring Control over the Immigration System" was released this morning, and it has brought with it a flurry of changes. While we are waiting on some further practical details which should be announced in the coming days and weeks, we have summarised the headline points which will likely affect sponsors below.
Skill thresholds
The skill threshold for worker visas was reduced from RQF6 (degree level) in 2020 to RQF3 (A-Level) to aid with the end of free movement following the UK's departure from the EU. Now, the White Paper has confirmed the government's intention to revert back to the RQF6 requirement for Skilled Worker visas.
This means that the range of roles on offer for sponsorship will be substantially reduced (estimated by 180 roles), greatly affecting those employers who rely on non-UK nationals for lower-medium skilled roles. The government has also announced their intention to increase salary thresholds for these roles (the general minimum of which currently stands at £38,700 following increases in April 2024).
Immigration skills charge increase
The immigration skills charge (ISC) was introduced in 2017 and has not been increased since its introduction. This is set to rise by 32% according to the White Paper. For medium-large employers where the ISC is already £1,000 per year, this is a significant increase to sponsorship costs. The Home Office has indicated that it will be transparent on how this will be used to invest in the UK domestic workforce, but this has been an area of criticism in the past and it remains to be seen what this will look like.
Upskilling of the domestic workforce
The labour party manifesto last year included reference to the requirement for UK sponsors to demonstrate that they are actively upskilling and training the domestic workforce to be able to sponsor workers. It seems that the government is planning to expand on this promise and bring in measures that restrict employers sponsoring skilled workers if they are "not committed to increasing skills training".
There is no guidance on how this will be done on a practical level, however we expect the government to consult on this later this year before it comes into force.
English language reforms
The threshold for Skilled Workers will be rising from level B1 to B2 according to the White Paper; a high level of independent English. One of the more surprising changes is the introduction of an English threshold for dependant adult family members. While it seems that the intention is for this to be introduced at Level A1 (a relatively basic understanding of English), it looks like this will be increased to A2 for extension applications, and B2 in line with Skilled Workers for settlement.
Settlement and citizenship
Another interesting change is extending the route to settlement from five years to ten years in the majority of cases. The objective appears to be that a contribution-based approach will apply. Migrants who can show "contributions to the UK economy and society" may still benefit from a five-year route. We do not have further details on how this might work, but the Home Office has indicated it will consult on this later this year. We expect those already in qualifying immigration routes will still be able to benefit from the five-year route.
Along with this, the Life in the UK Test is set to be reformed - a decision which is arguably long overdue.
Other changes
While the above are the headline points, other important changes include:
- The immigration salary list is set to be scrapped. Employers who require employees in shortage occupations will no longer be able to benefit from lower salary thresholds or lower application fees (although some transitional arrangements will apply).
- The closure of the Health and Care visa route for entry clearance applications. Those already in the route will be able to extend until 2028 under transitional provisions, however this is still "under review".
- Reduction on the validity of Graduate visas to 18 months (currently 2 years for undergraduates and 3 years for PhD graduates).
- Introduction of workforce strategies for key sectors which rely on high levels of recruitment from abroad. Further information is awaited on what this means in practice.
- Increased compliance requirements for student sponsors, including the requirement to sign up to the Agent Quality Framework for those who use recruitment agents.
- Tighter controls on border security and increased good character requirements for those who have committed criminal offences inside or outside the UK.
- Measures to assist young adults without status who have lived in the UK since their childhood achieve settlement.
Employers with a heavy reliance on non-UK nationals should consider their recruitment strategies as soon as possible. In particular, those who rely on migrant workers for lower skilled roles should consider how they might meet any skills gaps that might be created under the new system.
Next steps
If you have concerns, our expert UK immigration team are always available to assist.
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