10 things employers should know about the Immigration White Paper

The government has made it clear that it intends to reduce the UK’s reliance on overseas labour and bring down net migration. In its White Paper - Restoring Control over the Immigration System, issued on 12 May, the government announced a number of proposals which reflect those stated intentions and makes it clear that prioritising and upskilling the domestic workforce is a key part of its plan to bring down net migration.

The White Paper proposes the most significant set of business immigration changes since 2020 and, if implemented, the effect on employers who currently rely on overseas nationals to fill vacancies will be significant. 

It includes proposed reforms to various different immigration routes including those available in connection with work, family and study. If introduced, these reforms would mean a number of significant changes to the UK’s current immigration system. 

Below we set out the 10 key proposals employers need to know:

1. Minimum skills threshold for new Skilled Workers: the government proposes to increase the skills threshold from the current threshold of A-Level and above to degree level and above (as was the case until 2020). 
2. Skilled Workers salary thresholds: the Migration Advisory Committee will be asked to review the Skilled Worker salary thresholds, including the various discounts currently available with a view to increasing those thresholds. 
3. English language requirements: The government proposes to increase the minimum English language requirement for Skilled Worker applications from B1 (being an intermediate level) to B2 (Independent User). The government is further proposing to require all adult Skilled Worker dependants to meet level A1 (Basic User) when they apply for their first dependant visa, with a requirement to demonstrate progression to level A2 (a higher level of Basic User) for any visa extension and to B2 for settlement applications.
4. Introduction of a new Temporary Shortage List: a new Temporary Shortage List is proposed which would allow the recruitment of overseas workers, at a lower skill level, on a temporary basis, for any occupation on the list.
5. Indefinite Leave to Remain: The qualifying period to apply for indefinite leave to remain will increase from five years to 10 years, although individuals will have the opportunity to reduce the qualifying period where they can demonstrate contributions to the UK ‘economy and society’.
6. Graduate visas: the maximum duration of graduate visas will reduce from two years to 18 months.
7. Highly skilled talent: the government has stated that it is committed to ensuring that the very highly skilled continue to have the opportunity to come to the UK. For example, it will be simpler for top scientific and design talent to use the Global Talent visa. The number of workers permitted under the Expansion Worker route (which allows representatives of overseas businesses to establish their business in the UK) will be doubled and an expansion of the High Potential Individual route will also be explored.
8. Social care: visas for social care roles will no longer be issued to new overseas applicants. Visa extensions and in-country switching are expected to be permitted until 2028 but this will be kept under review as the ultimate goal is to cease sponsorship for all social care roles. 
9. Immigration skills charge: the immigration skills charge is expected to increase by 32% (bringing the new charge to £1,320 per year of sponsorship), which will be the first increase since the charge was introduced in 2017.
10. Compliance: employers can expect a tighter enforcement of the immigration rules with stronger powers to tackle abuse and misuse of the immigration system and illegal working.

Whilst these changes are proposals only and some may not progress, the White Paper does set the direction of travel and it is clear that the government is committed to reducing net migration. As a result, employers should start to be assess how these changes may affect them with a view to identifying steps to address any issues which may arise or indeed how they might take advantage of any possible relaxation of the rules which facilitate the recruitment of highly skilled talent. 

We advise many of the UK’s best-known employers, as well as overseas businesses, on the immigration and employment aspects of recruiting and employing overseas nationals in the UK. If you have any questions, please get in touch with our Business Immigration team.

This article was co-authored with Shannon Willett. 

“But this White Paper also signals a new era. We will still be competitive in attracting the world’s best talent. At the same time, we will wean our national economy off its reliance on cheap labour from overseas. The end result will be a reformed immigration system that no longer ignores the millions of people who want the opportunity to train and contribute. And that backs our young people with the hope of good, well-paid jobs in their community.”

https://assets.publishing.service.gov.uk/media/6821aec3f16c0654b19060ac/restoring-control-over-the-immigration-system-white-paper.pdf