Today, the Government has announced some concrete detail – and a demanding timetable of just three weeks – for its expected tightening of skills and salary criteria for sponsored migrant workers. Employers will be scrambling to make sense of the changes and assess how their recruitment plans and budgets are affected. Matthew Davies looks at what is coming, and where employers should focus next.
July announcements: the background
With the media focused on its biggest backbench revolt to date over welfare payments, the Government has gone back to its immigration agenda, and sooner than expected. The publication of the White Paper in May heralded plans for “restoring control”. We commented at the time that this amounted in part to a likely full circle restoration of pre-Brexit level salary and skill thresholds for sponsored migrant workers, despite Boris Johnson’s’ cynical claim at the time to be “taking back control” even as his Government relaxed the criteria to unprecedented levels – predictably followed by unprecedented growth in third country economic migration. Well, the illusion helped him to “get Brexit done”. Now, his successors in Government are using the same language of “order and control” – and actually seem to mean it.
What is changing next?
As illegal small boat crossings hit their highest levels this year and the gangs’ profits soar with the temperatures, Home Secretary Yvette Cooper is aiming at lawfully licenced employers with a Parliamentary rule change to “restore order and control”. A Statement of Changes HC 997 to the Immigration Rules will be laid before Parliament this month. Implementation is therefore imminent; 22 July 2025. Businesses are used to being given more time than this to react and change course. Another immigration Statement of Changes last week bypassed all this and may have lent some a misplaced sense of security.
The 1st of July release from the Home Office somewhat stretches the position by claiming that “we are delivering a complete reset of our immigration system” – how often have we heard that in the last 25 years? – but here are the key points:
- The Skills Threshold for Skilled Worker permission will be raised for new applications, removing 111 currently eligible occupations and Standard Occupational Classification codes completely from those that support sponsorship. Almost all are occupations that would not have qualified before the Conservatives’ “new” immigration system in the run-up to Brexit. This is of little help to employers who are relying on the relaxed provisions for upcoming recruitment – or affected migrants with job offers - of course.
- Social care worker visas are being removed for overseas recruitment – “widespread abuse and exploitation” is given as the reason. Staff shortages in the care sector are a known issue and reputable care homes, and care providers will be equally hit, with some NHS services.
- A temporary, time-limited immigration salary list and shortage list will exist until 2026 for below degree level RQF 3-5 posts. They will be tied to requirements for affected sectors to invest in training and upskilling resident workers. The Temporary Shortage-focused List, containing occupations at RQF levels 3-5 which the Government regards as relevant to its Modern Industrial Strategy.
- The Migration Advisory Committee (MAC) is commissioned to review the temporary shortage list across occupations, salaries and benefits and may in time recommend provisions are extended beyond 2026.
How can employers see which SOC Codes are affected?
111 currently eligible occupations and Standard Occupational Classification codes are to be removed completely from those eligible for sponsorship. Appendix Skilled Occupations is being restructured to present eligible occupations and updated going rates in separate tables for occupations at RQF level 6+ (Tables 1, 2 and 3) and occupations at RQF levels 3-5 (Tables 1a, 2aa and 3a). Corrections are also being made to Agenda for Change salary rates in Scotland (Table 4).
How are annual salary thresholds being reset?
The default £38,700 Skilled Worker threshold is being increased to £41,700. Relevant PhD thresholds go from £34,830 to £37,500. The New Entrant minimum floor rises from £30,960 to £33,400. For those with current permission and covered by existing transitional arrangements, the general threshold goes from £29,000 to £31,300. Other thresholds rise from £26,100 to £28,200. Wage inflation since the last substantive changes in April 2024 and pegging to the 2024 Annual Survey of Hours and Earnings data means that these are less dramatic in effect but there are sharp consequences for cases already at the margins of eligibility.
Are there transitional arrangements?
Thankfully yes, although limited, there will be transitional arrangements for eligible sponsored migrant employees already in the Skilled Worker route. The Explanatory Memorandum warns that they “not be in place indefinitely and will be reviewed in due course.”
What to expect, and what to do?
Sponsor are recommended to:
- Review planned recruitment of sponsored migrants. Identify cases in the lower skilled currently eligible SOC codes and where the salary thresholds are at or close to current and new minimum amounts.
- Watch out for the SOC Codes and occupations being removed from sponsor eligibility – APP SW7 in the Statement of Changes which inserts the relevant new paragraph into the rules.
- Consider immediately any needs for additional Certificate of Sponsorship allocations – there will be a rush to beat the 22 July deadline and high demand for the post-licence priority allocation service.
What next?
There is more to come. The press release leans heavily on tough language. “The Government will not hesitate to restrict immigration access further, should there be clear signs of abuse and exploitation in sectors”, it promises, referring to an expected increase later this year in the Immigration Skills Charge, increased English language thresholds and a “new family policy framework”. There is no mention, yet, of changed time eligibility thresholds for settlement, in either direction. This could easily re-emerge as a proposal this year.
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