Prime minister Keir Starmer announced the government’s Immigration White Paper this morning, pledging to drastically reduce employers’ reliance on overseas workers and promote investment in homegrown skills.
The paper has now been published, and the government has indicated that some elements will require new legislation, while others will require a “change in approach across government, industry and society as a whole”.
Here are the key changes proposed in the paper:
1. Care worker visa route closed to new applicants
For a transition period until 2028, visa extensions and in-country switching will be permitted for those already in the UK with the right to work, although this will be kept under review.
2. Timeframe to qualify for citizenship doubles
People coming into the UK will only be able to apply for indefinite leave to remain after 10 years, not five, although the government has said there may be some exceptions where individuals have highly sought-after skills.
3. Skilled worker visa requirements to be higher
“The Skilled Worker Route will also now carry a qualification threshold of RQF Level 6 – equivalent to a UK bachelor’s degree,” explains Jonathan Beech, managing director of immigration law firm Migrate UK.
“For roles that do not meet the new skill level, access to the immigration system will be strictly limited. While this will not be a problem for ‘shortage occupations’, it does present a particular problem for the hospitality industry, which does not appear on these lists.”
Immigration changes
Immigration white paper: strict limits on overseas recruitment
Employers who wish to sponsor skilled workers will also have to demonstrate a commitment to training local hires, although the white paper does not offer further details on how this will be measured.
4. Immigration skills charge to increase
The immigration skills charge will go up for the first time since it was introduced in 2017, by 32% to bring it in line with inflation.
5. Immigration salary list will be abolished
The immigration salary list, which allowed employers a lower salary threshold to recruit overseas workers in certain roles, will be abolished.
6. ‘Time-limited’ shortage occupation recruitment allowed
For occupations where there have been long-term skills shortages and there is still a visa requirement below degree level, employers will be able to use the points-based immigration system on a time-limited basis, providing there is a workforce strategy in place and the employers are committed to increasing recruitment from the domestic workforce.
7. Graduate visas limited to 18 months
The government will reduce the ability for graduates to remain in the UK after their studies to a period of 18 months (down from the current timeframe of two years).
Institutions sponsoring international students will also be required to demonstrate they are considering local impacts. Short-term study accreditation bodies will be reviewed to check their processes are robust.
The government is considering introducing a levy on universities’ income from international students to be reinvested into national skills needs.
8. Changes to English language requirements
Skilled workers coming into the UK will need to demonstrate English language skills at B2 level, equivalent to A-level standard, and adult dependants will need to show they can reach a basic level.
Workers and dependants may be required to show their language skills are progressing during their stay in the UK.
9. Provisions for ‘brightest and best’ global talent
Sacha Wooldridge, partner and head of immigration at law firm Birketts, explains that the list of eligible international graduates who can use the High Potential Individual visa will be broadened. This visa offers the right to reside in the UK with no work restrictions, minimum salary, skill level or sponsor for two years.
“On the downside, however, this will effectively create a more favourable post-study work visa for graduates of foreign education institutes than those graduating from British universities,” she says.
“The government has also announced broadening of the Expansion Worker visa category for those overseas businesses looking to grow and invest in the UK market.
“Whilst this is a white paper and not yet draft legislation, we would welcome clarification from the government at the earliest opportunity as to grandfathering provisions for existing migrants in the UK for whom today’s announcement is causing significant uncertainty and distress as to their life and future in the UK.”
10. Labour Market Evidence Group established
The government will establish a group made up of stakeholders from the Industrial Strategy Council, the Department for Work and Pensions, skills bodies and the Migration Advisory Committee.
This body will be tasked with looking at sector and employer evidence of skills needs and whether these can be addressed on a local level.
Impact on employers
Wooldridge estimates that the proposed reforms could cost employers as much as £14,250 before an applicant can secure permanent residence – a 158% increase on current costs.
“This is the cost of a single worker and excludes family members and any legal advice needed. This also doesn’t account for the proposed rises in minimum salary for international workers and the respective NI liability and pension contribution costs that employers will face as a result,” she adds.
Employers may also seek to take pre-emptive action on extending workers’ visas early so they can benefit from the lower costs and salary thresholds for longer, she believes.
Beech at Migrate UK argues that the reforms could “decimate” industries such as care and hospitality.
He adds: “We already know from our work with employers in the care sector that they are finding it extremely difficult to recruit sufficient staff.
Those hardest hit by this heavy-handed approach will be UK-based employers who are already struggling to find the skills they need” – Emma Brooksbank, Freeths
“By closing the care worker visa to new overseas recruits, tens of thousands of care workers will be prevented from coming to the UK (based on current overseas hiring figures), which will have an immediate effect on employers trying to maintain sufficient staffing and make recruitment of much-needed skills even harder.”
Emma Brooksbank, partner and immigration specialist at Freeths, agrees: “These changes will be a disaster for sectors such as care, construction and hospitality who already suffer from chronic labour shortages.
“It also sends out the wrong message to our international partners, namely that the UK is closed for business.
“Limiting the immigration system to this extent could result in the closure of education providers, understaffed care homes, house building projects failing to get off the ground and restrictions on growth in key sectors such as AI and tech.
“Those hardest hit by this heavy-handed approach will be UK-based employers who are already struggling to find the skills they need to fill vital roles.”
Ross Kennedy, senior client manager at Vanessa Ganguin Immigration Law, believes the changes will make “one of the world’s most expensive immigration systems even more expensive for employers”.
“If a skilled worker will need to be sponsored for ten instead of five years before they qualify for settlement, the Immigration Skills Charge alone will increase from £6,600 over five years to £13,200 (if the charge stays at the current level).
“The cost of sponsoring someone for 10 years after these changes are implemented will be more than double the current five years before they qualify for settlement. This extra cost – whether or not a sponsored employee moves to another employer within the ten years, will be a major drag on sectors relying on foreign recruitment, despite the Prime Minister’s assurances that the White Paper will not affect UK growth.”
Questions remain
Audrey Elliott, partner and head of immigration at Eversheds Sutherland, says there are still some points requiring clarification.
“Some of the changes are clear: we will see more changes to the skilled worker route with skills and salary thresholds increasing, more changes to fees… and higher requirements for English Language.
“Some are less clear: What will the new salary levels be, reflecting on the big increase in April 2024? What codes will we lose from the eligible list for the skilled worker route? What will the impact of the new Labour Market Evidence Group be, and what will the new requirements for workforce strategies mean in practice?
“Looking longer term, the extension of the period for settlement for five to 10 years will extend the period of sponsorship for Skilled Workers appointed into permanent UK roles.
“Overall, long- and short-term recruitment and talent strategies will need a full review as more detail emerges.”
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