UK Immigration White Paper: What employers need to know

The UK government’s Immigration White Paper published this week sets out proposals to “restore control to our borders” and reduce net (legal) migration which have a significant impact on employers, especially sponsors of skilled workers and those who rely on international talent.

Many of the reforms will require changes to the immigration rules which may take months to implement, some will be subject to consultation and input from the Migration Advisory Committee (the MAC). Most changes will apply prospectively with transitional rules for visa holders already in the UK. However, it is clear that overall the changes will have far reaching implications for employers looking to hire non-settled workers with significantly increased sponsorship and associated costs. Employers will need to reassess hiring strategies, be mindful of higher costs and longer sponsorship commitments and also be prepared to invest in and comply with the requirements of workplace strategies aimed to maximise the use of the domestic workforce.

A summary of the key proposed changes are set out below:

Skilled Workers: raising the skill and salary thresholds 

The minimum skill level for sponsorship as a Skilled Worker (currently RQF 3/A-Level standard) will return to the pre-Brexit level of RQF 6 (i.e. degree level) with a significant reduction in the occupations eligible for sponsorship. The minimum salary thresholds will also increase (details have not yet been provided).

Elevated English language requirements

Skilled Workers currently have to evidence that they can read, write, speak and understand English at level B1 of the Common European Framework for Reference for Languages (intermediate level). This will increase to level B2 (independent user level). There will also be a new English language requirement for all adult dependants of workers starting at level A1 (basic user) increasing to level A2 for any visa extension and B2 for settlement.

Higher sponsorship costs

The immigration skills charge, the fee paid by companies when sponsoring migrant workers, will rise by 32%.  This means the cost for sponsors of a skilled worker will increase from £1000 to £1320 per year of sponsorship for large sponsors and from £364 to £480.48 per year of sponsorship for small and medium sponsors.

Longer path to settlement and citizenship

The qualifying period for indefinite leave to remain is to double from five to ten years. Individuals will have the opportunity to reduce the qualifying period based on their contribution to the UK under so called “Earned Settlement”, the details of which will be available and subject to consultation later this year. However, in practice, it is likely that many skilled workers will need to wait a full decade before being eligible for settlement and sponsors may have to sponsor workers for longer with considerable additional cost for sponsors and applicants. A large sponsor sponsoring a skilled worker for the full ten years will need to pay £11,373 for the certificate of sponsorship fees and immigration skills charge. At current rates, an initial skilled worker visa for five years, an extension for a further five years plus the immigration health surcharge for the full period will cost £13,261. This brings the total mandatory costs associated with ten years within the skilled worker route to almost £25,000, a considerable burden given that fees have to be paid in full upfront at the point of sponsorship and the visa application.

It is further proposed that the qualifying period from settlement to British citizenship will be increased, again with scope for earlier eligibility based on contribution to the UK. The Life in the UK test will also be “refreshed”.

Graduate visas and High Potential Individual visa

Going forward the length of the unsponsored visa for graduates from UK universities will be reduced from two years (three for those with a PhD) to 18 months (and it will be interesting to see whether leave under the High Potential Individual visa is brought in line).

As part of its commitment to attract the most talented individuals to the UK, the immigration routes for “very high talent” will be reviewed and expansion of the unsponsored High Potential Individual route for graduates from top ranking overseas universities which allows them to come to the UK for two years and work without restriction.

Temporary shortage list and closure of the social care visa route

The Immigration Salary List setting out eligible skilled worker occupations where a lower minimum salary can be paid, will be replaced by a new Temporary Shortage List with a limited number of roles. The MAC will recommend the occupations to be included on the list and appropriate visa terms and conditions including time limits and caps on the number of visas. There will be a requirement for a workforce strategy and commitment from employers to increase recruitment from the domestic workforce. For Temporary Shortage List occupations below skill level RQF 6, there will be new restrictions on sponsored workers bringing dependants to the UK.

The social care visa route will be closed to new overseas applicants. Visa extensions will be permitted up until 2028 for those already in the UK but this will be kept under review.

Refugee employee

The government plans to explore allowing a limited pool of UNHCR recognised refugees and displaced persons living overseas to apply for and access employment through the sponsored skilled worker route where they have the applicable skills.

Whilst it is clear that the government considers that the proposed reforms will result in a more controlled and fairer immigration system, many non-settled employees and employers will understandably be concerned by the implications.

For further details, you can read the full White Paper here.

If you have any questions or require immigration support or advice, please reach out to Manon Rattle, Lizzie Field, or another member of the Immigration & Employment team. We would be happy to help.