Business implications of proposed UK Immigration Rules changes
Titled “Restoring Control over the Immigration System”, the long-expected immigration White Paper was published on Monday 12 May 2025. It proposes several significant reforms to reduce net immigration, with wide-reaching effects on businesses, but more on specific sectors such as social care and higher education.
The paper has received mixed reactions, and the details have been debated in the media since they were released. It is important to remember that these are only proposals and not yet legislation - no changes have been implemented, and the current Immigration Rules remain in effect until further notice. While the legislative process often takes months, if not years, we are expecting the Government to move swiftly on at least some of these proposals.
Key changes to visa requirements
Notably, the Government is not committing to a specific net migration target, instead repeating that they expect a “significant” reduction in numbers.
At least in part, this reduction will come from the proposed increase in the skill level required for a Skilled Worker visa, raising it back to RQF level 6 (graduate level). This would result in the removal of about 180 job roles from eligibility for sponsorship, including roles in administration, care, sales, machine operation, construction, and various trades already struggling with severe understaffing.
Businesses with vacancies in these roles will have to rely solely on local recruitment, which the government has suggested could be through training those currently unemployed.
The salary levels required will also continue to rise, further cutting out those employers who cannot afford to pay salaries in the top 50%, particularly disadvantaging employers outside London and the South. There will also be businesses who won’t be willing or able to foot the 32% increase in Skills Charge applied to every sponsored employee.
Applicants for UK visas are already required to prove their knowledge of English to B1 level, and this is expected to increase to B2 level. Currently, dependants of main applicants are not subject to English language requirements, but the proposals are looking to introduce this requirement to ensure that adult dependants (in most cases spouses) are also able to integrate and find work in the UK.
There are also plans to reduce the graduate route, which allows graduates from UK universities to stay in the UK and work in any job while they look for sponsorship, from the current 2 years to 18 months. At the same time, there are also proposals to increase the number of foreign universities whose graduates qualify for a High Potential Individual visa, theoretically potentially creating preferential treatment of overseas graduates compared to those completing a UK-based course.
A commitment has been made to review the Founder/Innovator route and increase the number of people arriving to the UK through the Global Talent route, though these proposals are different from creating suitable routes for investors and entrepreneurs wishing to base themselves in the UK. If the proposed increase to the settlement timeline is to apply to these routes as well, numbers may dwindle, as the highly talented will potentially choose other countries with a faster (and cheaper) path to citizenship.
Addressing sector-specific workforce gaps
Temporary Shortage List visas will be introduced for lower-skilled jobs in sectors where there have been long-term shortages. These will need to be combined with the existing workforce strategy, and employers “committed to playing their part in increasing recruitment from the domestic workforce”, with policies introduced to ensure sponsoring employers are incentivised to invest in boosting domestic talent through training initiatives.
Long-term impacts on settlement and talent acquisition
The proposals to increase the settlement timeline from the current 5 years to 10 years and introduce new rules to citizenship eligibility to make it “earned”, are said to have caused concern among the existing migrant community in the UK.
The Home Secretary hasn’t reassured those already in the system, and it appears that the Government is not excluding the option of applying the changes retrospectively, albeit this will be subject to public consultation.
The proposed 10 years’ settlement pathway would be the longest wait for security of immigration status among all the major economies, which would arguably have the opposite effect on the UK’s ability to attract highly skilled talent.
These debates are unlikely to go away any time soon, and most of the proposals above are expected to be open to public consultation in due course.
We are here to help
If you would like to discuss how these proposals might affect your business staffing strategies, or your personal immigration status, please get in touch with our HR Consultancy team.