What do the Government’s immigration reforms mean for business?

The recently announced reforms to the UK’s immigration system could affect businesses who employ overseas workers to bridge retention and recruitment gaps or bring specialist skills to the UK.
The new five-point plan has been announced in a bid to reduce net migration figures.

The impact of the reforms will affect organisation where UK skills shortages and recruitment and retention challenges have generated an operational need for overseas workers, particularly in care and education. The reforms mean many workers will no longer be eligible for sponsorship across all business sectors.

What action should employers take?

Bring forward the sponsorship and visa process for any overseas workers, if there is any doubt around qualification after these changes.  Communicate to existing sponsored workers who may be concerned about the impact of reforms on their status.

Review your overseas recruitment information to manage expectations of any future candidates. Consider if Graduates working in your organisation should be sponsored before the expiry of their current visa.

What are the changes?

• Those on Health and Care Worker Visas will no longer be able to support dependants, meaning from early 2024 any newly arriving care workers must leave their family overseas.
• The minimum salary for skilled workers overall will be raised to £38,700 from April 2024.  A significant number of vacancies across most sectors will no longer be eligible for sponsorship.   This salary increase will not apply to those in health and care roles or those on national pay scales (including teachers) who will continue to benefit from a lower minimum salary in recognition of sector shortages.  Skilled workers who are already in the UK will not need to meet the £38,700 salary when they change sponsor, extend or settle.
• The shortage occupation list, which identifies roles with UK skills shortage and allows a 20% salary discount, will be reformed and/or replaced no earlier than April.  Sponsorship may not be possible for current shortage vacancies (dependant on salary).  
• British citizens and people settled in the UK will need to document a minimum income of £29,000 from “Spring 2024” before they can bring their Partner and/or children from overseas – a significant increase on the current threshold of £18,600. The minimum income will eventually rise to £38,700 but no timeline has been given for this. The new income does not need to be met by those who already live in the UK and need to extend their visa.  
• Graduate visas which offer a two-year access to the UK labour market to international students who complete their studies in the UK will be reviewed from January until late 2024.  Employers should be on alert to the removal of this right to work as it will reduce the temporary workforce.

The reforms were announced by Home Secretary James Cleverly on 5 December 2023 and amended on 21 December to clarify timelines and the position for workers already in the UK.  While the reforms maintain the structure and key visa categories of the UK’s points-based system, they are expected to reduce visa access overall by 300,000. 

The Government’s reforms can be read here and clarifications here.

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