The UK government has today published its White Paper proposals to reform the UK immigration system. The stated purpose of the paper, Restoring Control over the Immigration System, is to tighten up the visa rules to safeguard border security, to reduce migration levels further, and to introduce a link between UK immigration policy, skills and training.
The wider context to these wide-reaching changes is that net migration to the UK for the year ending June 2023 was approaching one million people, four times the level in 2019. Even though visa approvals have dropped by about 40% since last Summer's General Election, largely due to controls introduced by the previous government, these latest restrictions go further and cut across all areas of immigration policy.
The White Paper is a stated intention to change UK law – the changes listed are not effective immediately. The new rules will apply to applicants applying for the first time after the changes become law in the coming weeks or months, but there's no timetable yet. Other than changes to Skilled Worker skill level, the White Paper is silent about whether changes will apply retrospectively to anyone who has immigration permission before the changes go live and who will remain in that same visa route to subsequently extend or apply for settlement. Normal practice is that new rules only apply to applicants entering a visa route after the date of the rule change, and that transitional arrangements protect workers from the new rules. But we will need to see what the new rules say when they are published, especially in relation to the increase to the qualifying period for settlement explained below.
We have focused this update on the changes affecting businesses, employers and workers across all sectors.
- Immigration Skills Charge (ISC): as the ISC has not been increased since its introduction in 2017, ISC payable in sponsorship cases will increase by 32%, so rising from £364 to about £480 per year of the visa for small sponsor or charities, and from £1,000 to around £1,320 per year for large sponsors. As is already the case, employers are not permitted to pass any of the ISC cost to visa applicants.
- Skilled Worker skill level: the minimum skill level for qualifying sponsored jobs will increase from RQF level 3 (A-level equivalent) to graduate level (RQF level 6), which is the level it was at previously until 2020. This will bring it line with the skill level for the main Global Business Mobility route and will result in around 180 fewer occupations qualifying for sponsorship. The White Paper confirms that existing Skilled Workers in currently eligible occupations below graduate level will continue to be able to renew their visa, change employment and take supplementary employment. But once the new rules go live, applicants from overseas, or those applying to switch from other routes, will have to follow the new rules.
- Skilled Worker salary: the White Paper says 'salary thresholds will rise' alongside the skill level change but there's no more detail yet, including on whether it's the general baseline threshold or going rates that will increase.
- Graduate visas: the available visa period for post-study work will be reduced from the current two years (for most graduates) to 18 months. During that period, graduates can continue to do any job without a minimum salary but will now have less time to progress their salary to a level that qualifies for Skilled Worker sponsorship, especially if the pay thresholds will rise. In addition to those changes for individual graduates, universities that are student sponsors will also have to pay a levy on their income from foreign students and face greater compliance conditions.
- Settlement (indefinite leave to remain): it has always taken five years – or three years in some limited cases like Global Talent - to qualify for settlement on a work visa. That will now change, in line with the principle stated in the White Paper that individuals should 'earn their right to privileged immigration status in the UK through the long-term contribution they bring to our country'. While exempting non-UK dependants of British citizens (Appendix FM) who've complied with the rules, the qualifying period for Skilled Workers and other applicants under the points-based system will double from five years to 10 years. But there may be an opportunity to reduce that qualifying period based on unspecified 'points-based contributions to the UK economy and society', which will be subject to consultation later this year. It will depend on what opportunity there is to reduce the qualifying period, but this is a huge change for employers and workers. As well as prolonging time-limited immigration status for a worker and their family members, it potentially doubles the cost to employers to support their employees through to permanent residency, which will be an extra strain on their budgets.
- British citizenship: as naturalisation as a British citizen requires prior settlement as a mandatory condition, the change to the settlement rules will have a similar knock-on effect to citizenship rules. The White Paper proposes a similar carrot to the settlement rules of allowing those with 'greater contributions' – again TBC on what that means - to qualify sooner, as well as a much-needed refresh of the Life in the UK test.
- English language for main applicants: The minimum English language requirement for Skilled Workers and other similar work routes will rise from B1 to B2 (independent user level) under the Common European Framework for Reference for Languages (CEFR). In some intra-company transfer cases, this may swing the pendulum back towards using GBM, as GBM has no English requirement. Even though GBM is not a pathway to permanent residency, changes to the settlement rules for Skilled Workers referred to above may make settlement more difficult to achieve for Skilled Workers anyway, and so reducing the appeal of the Skilled Worker route when comparing both options.
- English language for family members: Currently adult dependants are exempt from proving English language in most work visa routes. To assist with integration and community cohesion, the White Paper introduces new English language requirements for adult dependants to qualify for a visa. On an initial application, the minimum standard will be A1 (basic user level) – so a lower level than a Skilled Worker applicant for example – but with a requirement of progression over time. To extend that dependant visa, the minimum level will increase to A2. The dependant would then need to show further progression in proficiency to level B2 (independent user level) – the same as a Skilled Worker main applicant – to be able to apply for settlement up to 10 years on from initial approval.
- Family visas: as well as proving English proficiency, there will be a wider policy review for the immigration rules for dependant family members.
- Temporary Shortage List (TSL): The Immigration Salary List for shortage occupations will be scrapped and will be replaced by the TSL. The TSL is aimed at shortage occupations below degree level (RQF 3-5 jobs) that don't qualify for Skilled Worker sponsorship. The TSL will only be available to sectors that are key to the UK's industrial strategy or delivering critical infrastructure – so construction may be an example. There will have to be a proper workforce strategy which aims to maximise the use of the UK workforce and includes agreed training and broader plans with skills organisations. The Migration Advisory Committee will advise the Home Office on TSL inclusions and appropriate visa terms and conditions, including time limits and caps of visa approvals. And workers on these visas may not be able to bring dependants with them, which will make it more difficult for businesses to attract workers from overseas.
- Workforce strategies: The government intends to reverse the perceived trend of increased overseas recruitment while investment in skills and training decreases. To address that, it is creating the Labour Market Evidence Group (LME Group), comprised of skills groups and government agencies, to inform on the state of the labour market and the role that different policies should play. Drawing upon the evidence base gathered by the LME Group, key sectors where there are high levels of recruitment from abroad will need to produce, or update, a workforce strategy which relevant employers will be expected to comply with. This will detail steps to be taken on skills, training, and broader conditions, as well as engagement of the economically inactive domestic labour force. So, for example, sponsorship of visas in some sectors may be conditional on the employer meeting certain skills and training requirements.
- Social care visas: following concerns of widespread exploitation and abuse in the sector, the Home Office is closing the care worker visa route to overseas applicants. For a transition period until 2028, the Home Office will permit visa extensions and in-country switching for those already in the country with working rights.
- Race for global talent: most of the White Paper is dedicated to measures to reduce migration numbers and to protect the integrity of the immigration system. But there is one page of the 80 or so that floats some welcome possible changes to the system to encourage investment and talent to the UK. These include simplifying the Global Talent route, reviewing the Innovator Founder route, doubling the number of workers that can use the UK Expansion Worker route from five to 10, and a possible targeted and capped expansion of the High Potential Individual route (for applicants that have graduated in the last five years from an elite non-UK university) by doubling the number of qualifying institutions.
These changes are not yet live, so please do review your future recruitment and retention plans and speak with existing UK based colleagues on temporary visas (that may need sponsorship in the future), to assess your immigration strategy. For example, can you accelerate any immigration applications now to take advantage of the current rules before they change?
Please watch this space for further updates as we hear more and look out for a webinar in due course when we'll discuss what it all means. In the meantime, please do contact us at any time if you'd like to discuss what the changes mean for you or your team.
