On 12 May 2025, the prime minister announced a number of proposed changes to the UK’s immigration system, designed to cut levels of immigration into the UK. These measures were announced in a White Paper, which is subject to further consultation and discussion. The proposals are therefore not set in stone, but provide a useful indication of the direction in which the government intends to take the UK’s immigration system.
We have summarised some of the headline proposals below, along with the potential implications for UK employers.
At present, to be eligible for sponsorship under the skilled worker route, a role must be skilled to RQF Level 3 (A-Level equivalent). The White Paper proposes that this skill level be increased to RQF Level 6, or degree-level equivalent, which was the case prior to the 2020 immigration reforms.
There may be some narrow exceptions to this; the Home Office will establish a new Temporary Shortage List, which will provide restricted and time-limited eligibility for occupations below RQF Level 6. The Home Office has not indicated which occupations are likely to be on this list, but have suggested there will be additional eligibility requirements on employers in order to qualify, such as having a workforce strategy in place and demonstrating that they are playing their part in increasing recruitment from within the domestic workforce. This Temporary Shortage List will effectively replace the current Immigration Salary List, which is set to be abolished.
The government has also indicated that minimum salary thresholds will rise again, and that the Immigration Skills Charge, payable by an employer each time they sponsor a worker, will be increased by 32%.
These changes will have a significant impact on employers who rely on a sponsored workforce. A huge number of roles that are currently eligible for sponsorship, approximately 180, will no longer be eligible when the skill level is increased back to degree-level. The increase to minimum salary thresholds and the Immigration Skills Charge will also affect employers, as it may no longer be financially feasible for businesses to sponsor workers in a number of roles, particularly those where salaries are at or near the current minimum salary thresholds.
A small beacon of light for employers and existing skilled workers already in the UK, is that they will not be assessed against the stricter RQF Level 6 and salary criteria.
The White Paper also announces the closure of the Health and Care Worker route for new applications from overseas 'from 2025'. The Home Office has indicated that individuals already on this visa route will be able to extend and switch their visas until 2028, but that this will be kept under review.
This is a major change which will have a huge impact on the care sector, particularly adult social care, which is heavily reliant on sponsored workers due to the ongoing recruitment crisis. We recommend any health and care sector employers take steps now to consider their workforce planning and plan for the eventuality that they may not be able to recruit from overseas moving forwards.
The Graduate Visa route, which was introduced in July 2021, allows students to stay in the UK for two years (or three years for PhD students) after graduation to work on an unsponsored basis. It's proposed that this route will be limited so that graduates can remain in the UK for a period of 18 months after their studies, rather than two years, before needing to switch to an alternative visa route.
This will restrict flexibility for graduates, giving them a more limited opportunity to find sponsored work following the conclusion of their studies in the UK. It also means that employers who have been employing individuals on a non-sponsored basis while they are on Graduate Visas, will need to consider sooner whether they are prepared to offer sponsorship and (if so) to make arrangements to do so.
The Home Office plans to introduce new English language requirements across immigration routes, for both main visa applicants and their dependants. The standard of English that workers (for example on the skilled worker route) are currently required to meet will increase from B1 to B2 on the Common European Framework for Reference for Languages.
An English language requirement for all adult dependants will also be introduced, at Level A1 on the Common European Framework for Reference for Languages. Any visa extensions will need to demonstrate progression to Level A2, and settlement applications will need to meet Level B2.
This will have a significant impact, particularly for dependants who may not have a strong grasp of the English language prior to relocating to the UK. It will also increase costs for applicants as they will, in most cases, need to take and pass a Home Office-approved English language test prior to making a visa application, and may need to take further tests when applying to extend their visa and/or settle in the UK.
Under the current system, an individual usually needs to have spent five years in the UK on an eligible visa route, in order to be eligible for settlement. The Home Office plans to increase this standard qualifying period to ten years. However, the White Paper states that they will continue to offer a five-year pathway to settlement for certain individuals, for example non-UK dependants of British citizens, or based on an individual’s contribution to the UK economy and society. The Home Office has not indicated how an individual will be able to qualify for the five-year route, but has stated they will consult on these changes later in 2025.
This will have a significant impact on individuals seeking to make their home in the UK long-term. It remains to be seen how wide-ranging the five-year pathway will be, and whether anyone not eligible for that pathway will need to continue to make extension applications every 2.5 years, as is currently required. This would significantly increase those individuals’ costs as well as increase uncertainty of their long-term future in the UK until they have accrued 10 years’ residence.
Although these announcements may be alarming, employers should not panic – these are proposals and are still subject to debate and consideration. We also have little, if any, indication of how these proposed changes will be implemented in practice.
It's also important to note that the above are just some of the key proposals set out in the White Paper, which runs to 80 pages. The changes that are ultimately introduced could be wide-ranging. Largely, we will have to wait and see which proposals are ultimately implemented, how, and when.
That being said, it's advisable for employers to consider how these changes may affect their organisation, and take early steps to consider any action they can take with regards to business planning at this stage, in advance of further information being provided.
Businesses should therefore ensure they stay up-to-date with any further updates from the Home Office, and be prepared to take action promptly once the changes are formally introduced.
For advice on how these proposed changes may affect your business, or for any business or personal Immigration advice, please contact a member of our immigration team.
