New hiked up skill and salary thresholds are set to put the brakes on work-related immigration after the Easter break. Tougher criteria will apply, but as always, it isn’t straightforward, and employers may struggle to make sense of the new landscape.
Matthew Davies, Partner and Head of Business Immigration and Tracie Udall, Partner put the latest changes into context and perspective, and set out the key points.
What is the Government doing with skilled immigration, and why?
Immigration was in the headlines again last week because of the troubled progress of the controversial and eye-wateringly expensive Safety of Rwanda (Asylum and Immigration) Bill. As MPs and peers battle on with the third attempt to get this onto the statute books, the real immigration focus for business and employers is elsewhere.
Back in December, the PM and Home Secretary tried to seize back the agenda with the 5-point plan for economic migration (see article). The basic idea is to cut reliance on, and access to, immigration to staff UK businesses. Brexit was supposed to enable us to “take back control of our borders” by decoupling from EU law and free movement, but in reality, net immigration has increased and is perceived as a problem. Illegal boat crossings hit record levels, the Independent Chief Inspector of Borders and Immigration was sacked after criticising a “dysfunctional” system - and a General Election looms.
What is changing and when?
A Statement of Changes brings into law key changes in the sponsored skilled worker category, many of them with effect from 4 April 2024.
- From 4 April, the default minimum salary threshold for a Skilled Worker visa application will rise to the higher of £38,700 or the “Going Rate” set out in an Appendix to the Immigration Rules.
- Going Rates are determined by reference to the SOC (Standard Occupational Classification) codes published by the Office for National Statistics. These will move to SOC 2020, instead of the increasingly outdated SOC 2010. Many SOCs commonly usually used by sponsors will change and some will see a major base salary increase.
- To set these salaries, the 50th percentile of the 2021 survey of hours and earnings will be used instead of the 25th, which bring the actual real the minimum salary threshold for many codes well above the default £38,700.
- For those already in the Skilled Worker category, transitional salary rates will be used when they apply to extend their permission or change sponsor in the UK. For them, the minimum salary threshold will be the higher of £29,000 (up from £26,200) or the going rate for the type of role.
- The shortage occupation list is replaced by the pared down Immigration Salary list. There is no longer a 20% reduction in minimum salary levels for those roles that made it to the new list.
- The Home Office will retain the “new entrant” salary discounts for those applying for a Skilled Worker visa in defined circumstances. These include students switching to Skilled Worker and applicants under 26 years old. The new entrant discount reduces the Skilled Worker minimum salary threshold to the higher of £30,960 per year or 70% of the going rate.
- The Global Business Mobility / Senior Specialist Worker base salary threshold increases from £45,800 to £48,500; and if it is higher than that, the updated SOC Code going rate applies.
What else is happening?
Alongside this are more changes:
- Workers on family visas – the minimum household income requirement rises incrementally to £29,000, then £34,500, then £38,700. This will be a significant factor in dissuading many dependent family members of British, Irish and permanent residents from coming to live and work in the UK.
- The mandatory Immigration Health Surcharge is already up from £624 to £1,035 per person per year.
- A revised Code of Practice on preventing illegal working: Right to Work Scheme for employers has been in force from 13 February. There are major increases in civil penalties for employing an illegal worker – i.e. a person subject to immigration control who does not have permission to be in that role – from £45,000 to £60,000 per illegal worker.
- The Graduate visa route is “under review” by the Migration Advisory Committee - and its reform or removal may limit access to the graduate labour market for those with student visas.
If you have any concerns about the latest UK Immigration Policy updates and how it could affect your business, contact our Business Immigration team.
The information provided in this article is provided for general information purposes only, and does not provide definitive advice. It does not amount to legal or other professional advice and so you should not rely on any information contained here as if it were such advice.
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