Immigration Update: Summary of Immigration White Paper

The Government’s long awaited Immigration White Paper has been published (12 May) setting out proposals for restoring control over the UK’s Immigration system. The paper provides plans for reforms with particular focus on legal migration and the aim of significantly reducing net migration. There is a clear intention to link our immigration system to skills and training in the UK, crack down on illegal working and support integration and community cohesion with new rules on English language and the contribution people bring to the UK.

Our summary of the key proposals and what this means for UK business and employers who hire staff from overseas: 

Skilled Workers

• The skills level for skilled workers will be lifted back to RQF level 6 (degree level) and salary thresholds will rise for new skilled workers for which the Migration Advisory Committee will undertake a thorough review.
• The Immigration Skills Charge sponsor are required to pay will increase by 32% to bring rates in line with inflation. This means sponsorship for one year of sponsorship will rise from £1,000 to £1,320 so an increase of £960 per employee for up to three years sponsorship.
• English language requirements for Skilled Workers will increase from level B1 to B2 in accordance with the Common European Framework for Reference for Languages (CEFR).
• Social care visas under the Health & Care Worker route to new applicants from abroad will end with a transitional period until 2028 to allow for visa extensions and in-country switching for those already in the country with working rights, but this will be kept under review.
• There will be a new temporary Shortage List on MAC’s advice to provide time limited access to the points based system where employers seeking to recruit from abroad, are committed to playing their part in increasing recruitment from the domestic workforce.
• The government will establish the Labour Market Evidence Group to draw on the best data available in order to make informed decisions about the state of the labour market and the role that different policies should play, rather than relying on migration.
• The Immigration Salary List which gives workers discounts from salary thresholds will be abolished.

Graduates

• Graduates visa holder’s time to remain in the UK after their studies will be reduced from the current 24 months to 18 months. In practice, employers will need to consider sponsorship six months earlier.
• Those who stay in the UK post study may be required to transition into graduate level jobs to demonstrate their contribution to the UK economy.

Settlement

• Those applying for settlement and citizenship under the Points-Based System will be expected to meet a new standard qualifying period for settlement from five years to ten years with the opportunity to reduce the qualifying period based on contributions to the UK economy and society.
• A refresh of the Life in the UK test required for settlement in the UK is expected with further details to follow on how it operates.
• There will be a continuation of shorter pathways to settlement for non-UK dependants of British citizens to five years, and retaining of existing safeguards to protect the vulnerable, including settlement rights for victims of domestic violence and abuse.
• A refresh of the Life in the UK test required for settlement in the UK is due with further details to follow on its operation. 

The reforms are indicative that the UK intends to “take back control” of its borders but the implications for UK business and employers who rely on a migrant workforce means reverting back to a higher skills levels and more increases to salary thresholds. In reality, businesses will face further challenges when recruiting from overseas to fill vital vacancies while being forced to upskill the existing workforce and hire locally. 

Employers will face higher sponsorship costs and work visa are likely to require higher salaries than domestic workers for the same job, so international recruitment will no longer be a cheaper or easier alternative. Labour shortages cannot be solved by training alone and immigration policy requires long-term planning rather than being reactive to political pressures. At a time where strategic and balanced reform is necessary, there is too much focus on tightening of rules and the introduction of measure that make it more difficult for businesses to recruit the talent needed, that we know, cannot always be sourced locally. Future workforce needs must be considered in the upcoming changes with wider consultation based on economic data to provide stability for employers so UK immigration can advantageous to the country’s future growth rather than being presented as a problem.