Immigration Reforms 2025: What sponsoring employers should expect this Summer

The Home Office have laid new immigration rules before parliament (1 July 2025) in the recent Statement of Changes to the Immigration Rules (HC 997), as the beginning of major immigration reform following the announcement of the Government’s Immigration White Paper published on 12 May 2025. Subject to parliamentary approval, it is expected these changes will take effect later this month from 22 July 2025 with transitional arrangements. 

Key changes for skilled workers

The majority of changes will significantly impact skilled workers and employers who sponsor migrant workers under the current UK’s immigration points-based system. These reforms include:

• Increase to the general minimum salary threshold from £38,700 to £41,700 with ‘new entrant’ rates increasing from £30,960 to £33,400.
• Increase to skill level for sponsorship from RQF level 3 (A-level) to level 6 (Degree) that will result in several occupation codes being removed from the eligible roles for sponsorship and changes to Immigration Rules Appendix Skilled Occupations.
• The end of the adult social care visa for care workers and senior care workers coming from overseas with a transition period until 22 July 2028 for those already sponsored or switching from other visa routes. 
• Introduction of a Temporary Shortage List that will allow time limited immigration access for sub-degree level roles, restricted to critical jobs that support the UK's industrial strategy or key infrastructure projects. However main applicants will not be able to bring their dependants.
• Phasing out of the Immigration Salary List (ISL) and the Temporary Shortage List (TSL) will remain under MAC’s review who will retain or include occupations on the list where there is a workforce strategy in place, and where employers seeking to recruit from abroad are committed to playing their part in increasing recruitment from the domestic workforce.

As previously set out in the White Paper, those employees who are already sponsored under the skilled worker route who renew their visas, change employment and take supplementary employment in occupations below RQF level 6, will be exempt from the changes however these transitional arrangements will not be in place indefinitely and are expected to remain under review. The Government will commission Migration Advisory Committee (MAC) to undertake a thorough review of salary requirements and discounts. Any decision about transitional arrangements relating to that review will be made after MAC have made their recommendations. 

What next?

The Immigration White Paper is aimed at reducing net migration, clamping down on abuses of the UK immigration system and ending a reliance on foreign labour. Now that the first stage of immigration reforms has been announced, employers must thoroughly plan to consider their future recruitment demands and balance this with regard to upcoming legislative changes and increased sponsorship costs.

Further changes to be implemented by the end of 2025 include higher costs with a proposed 32% increase to the Immigration Skills Charge, to bring rates in line with inflation and the uplifting of English language requirement for skilled workers as well as across other immigration routes. 

For further information or assistance to navigate these upcoming changes to the Immigration Rules, please contact our Employment, Pensions & Immigration team.