From trade deals with India, the US, and the EU to reforms to the immigration system - wherever you look, you can’t escape the fact that the immigration landscape is changing and therefore so is recruiting from overseas.
Whilst the trade deals bring smaller changes, such as the extension of National Insurance exemptions for temporary Indian workers or the introduction of a youth mobility scheme, the reforms on the immigration system could mean significant changes to overseas recruitment.
Immigration system reforms
The Government this month (12 May 2025) published a white paper aimed at 'Restoring Control over the Immigration System'. The paper details reforms across several areas of the immigration system and many of them have an impact on employment law, particularly when it comes to recruiting overseas workers.
The Government’s overarching aim is to ensure the immigration system is linked to skills and training requirements in the UK, making it so no industry can rely solely on immigration to fill any shortages. The Home Office estimate the measures included in the paper could lead to a 100,000 drop in immigration per year by 2029.
The proposed changes are sweeping across the immigration system and include:
- Employers will no longer be able to recruit social care workers from overseas with social care visas being closed to new applications. There will be a transition period until 2028 where visa extensions will be permitted for those already in the country with working rights.
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- The required level for Skilled Worker visas will be lifted back to RQF 6 (degree level) and above and the salary threshold will be increased. Those already on an existing Skilled Worker visa will continue to be able to renew their visa and change employment in roles below the new level.
- Employers will be required to boost domestic talent and skills if they want to recruit from abroad. If they don’t, they will be restricted from sponsoring skilled visas.
- New requirements for workforce strategies will be launched in sectors that have high levels of recruitment from abroad. These strategies will be used as part of an assessment to allow employers to access the immigration system via a new Temporary Shortage List.
- The language requirements for Skilled Workers will be raised.
- The Immigration Skills Charge will increase 32% meaning employers will have to pay more to sponsor workers to come to the UK.
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- The Government will continue to build on the steps taken to tackle illegal working, specifically putting resource into key sectors where it is taking place, including the gig economy.
Whilst it is expected the changes will be implemented in phases, the visa changes are expected to come into effect over the course of 2025 so employers should begin preparing for the impact they may have on their business.
