For the UK, as in most countries, the political climate often dictates policy with respect to immigration. The Labour government came into power in October 2024, following 14 years of Conservative rule, and is re-evaluating immigration policies set by the Conservatives. The rhetoric in the UK is very much anti-immigration and, due to the previous leadership strategy, it was very much based on “stopping the boats”, which is with reference to the channel sea from Europe to the UK, which is a route that asylum seekers use to get to the UK.
In reality, the UK takes fewer asylum seekers than any other country in Europe, but this campaign crossed over into business immigration and has inadvertently fostered a broader anti-immigration sentiment, extending to business immigration. In response to the war in Ukraine, the government immediately removed the immigration investor category, as it felt that those fleeing the war would seek to use the category to enter the UK.
In April 2024, the government introduced a number of measures clearly aimed at reducing immigration – for example, the minimum salary level for Skilled Workers was amended to GBP38,700, which in contrast is much higher than the national minimum wage. With such a high salary requirement, many industries have struggled to sponsor overseas workers.
Existing sponsored workers have to meet new increased salary thresholds to qualify to extend their visa. This was particularly problematic for businesses that had to find additional budget to award pay rises to Skilled Workers, who needed an increase to their salary in order to extend their visa and remain in their role.
Some sectors now find that the minimum salary requirements for Skilled Workers are set at a level that exceeds what is paid to settled workers. This has left businesses grappling with the difficulties of either losing important Skilled Worker visa holders if their salary is not increased to meet new minimum levels, or having visa holders with higher salaries than settled workers in the same roles.
The long-awaited UK immigration policy White Paper was published on 12 May 2025. The policies are intended to reduce net migration to the UK and encourage recruitment from the domestic workforce.
At the time of writing, the White Paper has not changed the law; the exact changes are uncertain and the new rules will be implemented gradually throughout 2025 and into 2026. As a result, when reviewing the current immigration rules and processes set out in this guide, any changes implemented following the White Paper will need to be considered.
Significant changes to the Skilled Worker category are expected. The required skill level of sponsored roles will rise to RQF level 6. Minimum salary thresholds will rise. For roles at level 3-5, only those recognised as a long-term shortage can be sponsored on a temporary basis, with the possibility of a quota and restrictions on dependants. Workforce strategies will require sponsors to train and engage with the domestic workforce. For sponsors, the Immigration Skills Charge will rise from GBP1,000 to GBP1,320 per year of the visa for non-small company/charity sector sponsors. The English language test required level will increase from level B1 to B2 and – for the first time – adult dependent family members will need to meet English language requirements as part of their initial and extension applications, as well as at the settlement stage.
In an unexpected move, the government has said it plans to increase the qualifying period for settlement (indefinite leave to remain) from five to ten years. There is uncertainty around whether this will apply to people already in the UK, including Skilled Workers. Concepts of “earned” settlement and citizenship will be developed, where applicants will need to meet points-based criteria, potentially with the ability to shorten the qualifying period. These changes on settlement and citizenship are subject to a government consultation later in 2025.
Employers would be well-advised to submit any applications (for work visas and settlement, among others) as soon as possible where the current eligibility requirements are met.
Separate to the White Paper, the UK rolled out an Electronic Travel Authorisation (ETA) scheme from November 2023, which requires all non-British and non-Irish nationals to apply for pre-travel authorisation before travelling to the UK, where they would not ordinarily require a visa. When originally introduced, it cost GBP10 but this cost has now increased to GBP16. The ETA assesses the suitability of travellers for admission to the UK, applying the general grounds of refusal on criminality and non-conducive grounds. Applicants for ETAs who are not successful will be asked to apply for a visit visa.
Since 2024, the UK has been transitioning to a fully digital immigration system. Some visa applicants now receive an eVisa (digital immigration status) and share their status electronically with employers, landlords and other third parties. For many applicants applying outside the UK, a 90-day visa is issued in their passport and the person then needs to apply for an eVisa. Passport visas are expected to be replaced with eVisas in due course, and more applicants will be able to apply using an app to scan their passport and face rather than attending in-person visa appointments.
The UK is in negotiations with the EU in relation to whether a reciprocal visa scheme can be arranged for young people. Whilst not a return to pre-Brexit free movement, this would be a welcome development – not least for sectors such as hospitality, which have severe staff shortages.
The Skilled Worker visa allows eligible new hires to obtain an initial visa of any length up to five years, with a route to indefinite leave to remain (permanent residence) after five years in the UK. If a shorter visa is initially obtained, or if the worker wishes to change job/employer, further Skilled Worker applications from within the UK are possible.
The proposed role must meet minimum skill and salary thresholds. The salary threshold varies according to the candidate’s circumstances and the role on offer. The candidate must meet an English language requirement at level B1 (aligned with the Common European Framework of Reference for Languages, or CEFR).
The Global Business Mobility – Senior or Specialist Worker visa (commonly known as an Intra-Company Transfer) allows the transfer of existing employees of linked overseas businesses. A minimum period of 12 months’ employment is usually required, although there is an exemption for employees with a salary exceeding GBP73,900. The proposed role must meet a higher minimum skill level than the Skilled Worker category. There is no English language requirement. The route does not lead to indefinite leave to remain (permanent residence) in the UK. The visa is capped at five years in general, or nine years for high earners (salaries above GBP73,900).
Sponsored workers within the Skilled Worker and Senior or Specialist Worker categories are granted permission to work for the specific employer and in the specified role only. While minor changes to job title and duties can be permitted, major changes to duties may not be possible without a new visa application.
Temporary Work routes also exist, which cater to internships in most sectors, creative workers, charity workers and others. Each route has its own requirements but will generally result in a short visa, granting work permission in a specified role.
The Skilled Worker visa leads to indefinite leave to remain (permanent residence) after five years in the UK; a partner who has been in the UK as a dependant visa holder can also obtain indefinite leave to remain after five years. Accompanying children can obtain indefinite leave to remain at the same time as their parents, without completing a minimum period in the UK (since they may have been born later, in the UK).
All applicants aged 18–64 need to pass the “Life in the UK test”, which is a multiple-choice test on UK culture. All applicants aged 18–64 must meet an English language requirement at level B1. Main Skilled Worker visa holders will meet this automatically, having demonstrated their English language ability at the initial application stage, but partners will need to provide specified evidence of their English language ability.
Applicants must also meet a residence requirement, with time spent outside the UK usually limited to 180 days per 12-month rolling period in the five years before the application. There are some exceptions, allowing absences above this limit for compelling reasons, which can include travel disruption due to the COVID-19 pandemic.
If a Skilled Worker does not qualify for indefinite leave to remain at the five-year mark, they can continue to extend their permission instead, assuming they meet the relevant Skilled Worker requirements. For example, an applicant with extremely high absences from the UK may choose to extend their permission further rather than making a discretionary application for indefinite leave to remain.
Time as a Skilled Worker may also be used in combination with time in other visa categories, to complete ten years in the UK. This is another path to indefinite leave to remain, which may be of interest to Skilled Workers who have already spent a substantial period in the UK – eg, as students – before switching into the Skilled Worker category.
The Global Business Mobility visa category does not lead to permanent residence, and time in the UK is capped.
Unsponsored visas that permit work include:
Business visitors to the UK cannot carry out paid work, however short the duration (except for certain Permitted Paid Engagements).
Permitted business activities as a visitor include attending interviews or meetings, negotiating deals, and gathering information. No productive work should be carried out in the UK. The visitor should not usually be paid in the UK.
The Permitted Paid Engagement exception within the visitor category allows individuals to carry out paid activities in the UK within the first month of their trip. Only specified activities are permitted, as:
A full visit visa application with an online form, fingerprint and photo enrolment and submission of supporting documents is required for certain nationalities. The process can take several weeks.
Other nationalities fall within the Electronic Travel Authorisation (ETA) scheme, which requires an application prior to travel only. This is a shorter online-only process, and is generally approved within a few hours.
The ETA rollout was completed on 2 April 2025, and any person travelling to the UK as a visitor now needs to obtain either a visit visa or an ETA in advance of travel to the UK (with some minor exceptions). The previous option for certain nationalities to visit the UK with no advance process has now ended.
The UK permits a limited amount of remote work by a visitor. Remote working must not be the primary purpose of the visit, nor must the ongoing remote work be critical to the financial viability of the trip.
It must be clear that any remote work is part of the visitor’s overseas role, not filling a role in the UK (even temporarily).
In practice, a visitor may check emails and complete some tasks while in the UK, but only in relation to their overseas role, and only in addition to the main purpose of their trip to the UK, which must be a permitted visitor activity.
Several UK visa categories require applicants to demonstrate English language proficiency. The main categories include:
The required level of English (aligned with the CEFR) varies depending on the visa type but, generally, work and study visa applications require a higher level of English compared to family and settlement/citizenship applications, for which the threshold is lower.
Applicants can meet the requirement by:
Specified evidence will need to be submitted with the UK visa application.
Exemptions apply in cases of age (under 18 or over 65), physical/mental condition, or exceptional circumstances.
Individuals applying for a UK visa for more than six months must undergo tuberculosis (TB) screening if they have lived for at least six months in a country mentioned on UKVI’s list. A TB clearance certificate must be issued by a UKVI-approved clinic and submitted with the visa application. Certificates are valid for six months.
Sponsored employment under the Skilled Worker route is governed by a points-based system that requires the following.
Sponsorship under the Global Business Mobility – Senior or Specialist Worker route carries similar requirements, with the main differences being:
There is no cap on the number of sponsored workers a licensed sponsor can employ, as long as each role sponsored is justified. However, the sponsor must demonstrate appropriate HR practices and compliance capabilities.
A sponsored work visa ties the individual to the sponsoring employer and the specific role stated in their Certificate of Sponsorship. If the individual wishes to change employer, they will need to apply for a new visa sponsored by their new employer before commencing work with them.
Some secondary or supplementary employment is permitted, provided it meets certain conditions and does not interfere with the primary sponsored role.
UKVI conducts background checks during the application process. Applications may be refused based on suitability criteria, including:
Under the Skilled Worker route, for certain roles in health, education and social care, a criminal record certificate is required from countries where the applicant has resided in the past ten years (if aged 18 or over).
Unless the applicant (and any dependants, if relevant) has lived in the UK for at least 12 months, they must show they have funds to support themselves. Alternatively, their sponsor can certify maintenance, committing to financially support the applicant (and dependants) during the first month of their stay up to a certain amount.
Applications are completed online via UKVI’s digital portal. Supporting documents are submitted, either by uploading them electronically, or by presenting them at a Visa Application Centre (VAC). Identity verification is completed either through a mobile app or by attending a VAC to provide biometric data.
Applications should generally be made from the applicant’s country of nationality, or from a country where the applicant is lawfully residing long-term.
Exceptions apply for conflict zones or areas with no UK visa services – applicants may be directed to apply from a nearby country. For visitor visas, applications can be made from any country, regardless of residency, provided the applicant is lawfully present.
Most overseas visa applications are processed within three weeks. Family visas can take up to 12 weeks.
Applications submitted from within the UK usually take up to eight weeks, but more complex cases may take six to 12 months.
Applicants submitting from within the UK must not leave the Common Travel Area (UK, Ireland, Isle of Man and Channel Islands) while their application is pending, or it will be treated as withdrawn.
Applicants filing from outside the UK may be restricted from travelling if their passport is held for processing.
Most UK visa applications offer a priority service (decision within five working days), or a super priority service (decision within one working day).
Availability depends on visa type and country of application. These services carry an additional fee and must be selected during the application process.
If the individual is applying from outside the UK for a visa of more than six months, they will be issued a visa in their passport, which is valid for 90 days. This visa is issued for the purpose of their initial entry and is not the full duration of their permission to live in the UK. As part of the UK’s transition to a digital system, individuals are no longer issued with Biometric Residence Permits as evidence of their visa permission. Instead, upon visa grant, individuals must create an online UKVI account, which will provide them with access to an eVisa showing the full duration of their permission.
After the visa is granted, individuals are required to report certain changes to their circumstances to UKVI. For those who have eVisas, certain changes can be reported online. Other changes, such as criminal convictions or changes to family circumstances, must be reported through completing and sending a form to the Home Office.
For those on sponsored work visas, employers must report various changes to a worker’s circumstances – changes to job titles, work location, etc. Where a report is necessary, this must be completed within ten working days of the change taking effect. Some changes necessitate a new visa application.
The Skilled Worker and Global Business Mobility – Senior or Specialist Worker categories are the main sponsored work routes in the UK. A typical three-year visa application will cost around GBP8,000, while a five-year visa application will cost around GBP13,000. The total cost comprises:
In certain circumstances, some fees may be reduced or may not apply. For example, small employers in the UK pay a lower Immigration Skills Charge, and roles on the “Immigration Salary List” that are recognised as being in shortage pay a lower UKVI application fee. Health and care workers pay a lower UKVI application fee and are exempt from the Immigration Health Surcharge.
Applications for family members attract fewer fees, with only the UKVI application fee, priority service fee and Immigration Health Surcharge fees applying. A typical three-year Skilled Worker partner visa will cost around GBP4,500.
Visa applicants may pay the UKVI application fee, the priority fee and/or the Immigration Health Surcharge upfront, or may repay these fees to their employer.
Sponsoring employers must pay for the Certificate of Sponsorship and Immigration Skills Charge. These costs must not be charged back to the employee in any way.
Any loan agreement with an employee for immigration costs is taken into account when calculating their salary, and the salary on offer is reduced by the level of loan repayments, for the purposes of meeting the minimum salary requirement for the Skilled Worker category.
Legal fees relating to the employee’s visa application will be paid by the employer and not by the applicant, unless the applicant has had a free choice in the use and choice of legal assistance.
Enforcement Action Against Sponsors
Enforcement Action Against Individuals
Holding a sponsor licence comes with significant compliance responsibilities, which are strictly enforced by the Home Office. Sponsors are subject to audit by the Home Office and can be visited in person at the sponsor’s offices, or receive a virtual audit, or receive a written list of audit questions. Some sponsors will be audited before their licence is granted. All sponsors are subject to audit after their licence is issued.
Sponsors are obliged to comply with a wide variety of sponsor duties, including, for example:
Sponsors need to comply with all immigration and wider UK laws, including employment laws. Sponsors also need to ensure they do not behave in a way that is not conducive to the public good.
Penalties for non-compliance can include revocation of the sponsor licence. If a sponsor employs someone without permission to work, the sponsor could receive a civil penalty or even be convicted of a criminal offence.
There are strict right to work procedures in the UK. All employees must be checked before their employment starts. Only employees need to be checked, although sponsors should check all sponsored workers, including independent contractors and the self-employed. As a matter of good practice, some employers may also check non-employees. In March 2025, the government announced an intention for right to work checks to be expanded to all gig economy workers. The scope and implementation date of the new rules is unclear.
Aside from the separate sponsor duty requirements, employers are not legally required to check an employee’s right to work. However, if they do not and it is found that the employee does not have the right to work, the sponsor will receive a civil penalty or will potentially commit a criminal offence. To obtain a defence against the possibility of any illegal working, known as a statutory excuse, employers must carry out a compliant right to work check before the employment starts.
There are different valid ways to check an employee’s right to work, depending on their immigration status and nationality. Generally, British and Irish citizens will be checked manually using their original passport (although a digital Identity Service Provider system can also be used). Most sponsored workers will have an eVisa (a digital immigration status) and/or a Biometric Residence Permit, for which employers must carry out an online right to work check. The online process involves the employee generating a share code, which is sent to the employer to enable the right to work details to be reviewed.
Employers of those with time-limited permission need to do a repeat right to work check before the permission expires. In some circumstances, it is possible to use the Home Office’s Employer Checking Service to check someone’s right to work.
Under UK immigration law, dependent family members can include the following.
There are potential options for other types of family member but they would be discretionary applications – eg, adult dependent relatives.
Different rules apply for the EU Settlement Scheme, where more types of family members have been able to apply.
There are only a few UK immigration categories that do not allow dependent family members to apply, such as Student (unless the student has a scholarship or is studying for a PhD or a research-based higher degree); the Youth Mobility Scheme; and Temporary Work – Seasonal Worker.
Most dependent family members will have a right to work in the UK. Whilst sponsored workers can only work for their sponsor (aside from supplementary employment), dependants have a much more flexible right to work. The only restriction is generally that the dependant cannot work as a professional sportsperson or sports coach.
There are also restrictions in relation to when the main applicant’s sponsored work ends or the relationship breaks down, in which case the dependant’s permission is likely to be cancelled and the right to work would be lost.
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enquiries@kingsleynapley.co.uk www.kingsleynapley.co.ukCorporate Immigration in the UK: An Introduction
Business immigration in the UK is undergoing constant change. Brexit and the end of the transition period on 31 December 2020 saw the Boris Johnson government reduce the skills level for sponsored workers and introduce salary discounts for some cohorts of sponsored workers. This contributed to sharp rises in net migration, which prompted the last Conservative government to significantly increase minimum salary levels for sponsored workers as of 4 April 2024.
The recently elected Labour government has already introduced legislative changes to business immigration. The Home Office has also increased its scrutiny of UK companies that are applying for, or already hold, sponsor licences to recruit overseas nationals or transfer them from an eligible linked overseas company.
The current Labour government and the previous Conservative one have a shared aim: to reduce net migration and “take back control” of the UK’s borders.
On 12 May 2025, the government published its much-anticipated White Paper, titled “Restoring control over the immigration system”. A White Paper is an expression of policy intention and not legislation. However, the government has a large majority, which enables it to pass legislation easily. Whilst the proposed policies can change or be discarded altogether during the parliamentary process, it is reasonable to assume that many of them will become law, albeit with modifications.
Key reforms for businesses include raising the skill level and salaries for sponsored workers but there are exceptions for eligible sectors, which may be added to a Temporary Shortage List.
The change that is arguably creating the most uncertainty is the introduction of “earned settlement”, which would see the qualifying period for settlement increasing from five years to up to ten years.
Although the direction of travel is to decrease net migration and increase visa restrictions, the White Paper also contains plans to expand “very high talent” routes. The proposed policies also emphasise that “lower skilled” jobs will be targeted.
On 19 May 2025, the UK and EU announced that they had agreed in principle to operate what the British Prime Minister called a “Youth Experience Scheme”, which would be a reciprocal arrangement allowing British nationals, most likely aged between 18 and 30, to travel and work in the EU and vice versa for a time-limited period.
The government stated in a press release that the policies in the White Paper “will be delivered over the course of this Parliament, with the first changes to be introduced in the coming weeks”. The first changes to be adopted will most likely be the increase to the skills level and salary for sponsored workers, which could be introduced in Summer 2025. The Home Secretary stated in the House of Commons that the government has confirmed that it will set out further details regarding earned settlement and citizenship later in 2025, and that it would consult on them. It is not clear when the “Youth Experience Scheme” will be fully agreed.
Net migration
The main objective of legal migration policy in the UK is the further reduction of net migration figures. Net migration is the difference between the number of people coming into the UK and the number of people leaving.
The Office for National Statistics published the latest net migration figures on 22 May 2025. The data shows that net migration reached a record high of 860,000 in the year ending December 2023, and dropped by almost 50% to 431,000 in the year ending December 2024. The fall in net migration has been attributed to a drop in the number of people coming to the UK to work and study.
On 4 April 2024, the baseline earnings threshold for Skilled Workers was significantly increased, by 48% from GBP26,200 to GBP38,700 per annum; the “going rate” minimum salary for every job also went up. Despite the face that the biggest drop in numbers was in students’ family members, work visa applications fell as well, due to policy changes that restricted visa applications.
However, net migration is still higher than pre-pandemic levels. For example, government figures show that 192,000 visas were granted in all work categories in the year ending March 2025, which was 39% fewer than the year ending March 2024 but 40% more than in 2019.
It is likely that net migration will continue to fall once the policies in the White Paper become law. The technical annex accompanying the White Paper estimates that yearly net migration figures may drop by almost 100,000 if the policies in the White Paper to restrict work and study visas are implemented.
The government has said that it will not put a cap on net migration.
The current environment
Sponsor licensing
Many UK-based companies hold a sponsor licence that enables them to recruit overseas nationals to work for them in the UK or to transfer employees to the UK from an overseas “linked entity”. If they do not have a sponsor licence, they may apply for one. All companies that hold a sponsor licence must meet their sponsorship obligations and ensure that they are prepared in the event of a Home Office audit.
The Home Office has increased its due diligence for prospective sponsor licence holders, and is assessing businesses before deciding whether or not to grant them a sponsor licence. Businesses in sectors such as health and social care, construction and hospitality generally face the most scrutiny. However, recently incorporated companies in the UK and pre-revenue companies are also increasingly subject to pre-licence interviews or compliance visits.
Companies applying for sponsor licences must frontload their applications to pre-empt Home Office concerns about their business. If a UK business is interviewed, it needs to be prepared to address questions about the resources it has in place to demonstrate its ability to meet its sponsorship and compliance obligations.
With regards to existing sponsor licence holders, the Home Office has ramped up sponsorship compliance. The number of sponsor licences revoked by the Home Office increased dramatically in 2024 in comparison with previous years.
Audits of existing licence holders tend to be “intelligence-led” and to focus on sectors that have a track record of non-compliance, particularly those where there are relatively high numbers of illegal workers.
However, all licence holders must be prepared for an announced or unannounced Home Office visit. Sponsor licence holders must check that their record keeping is updated and that the Home Office has been informed of changes to their business that may impact sponsored workers. Examples include where a company has moved address, changed company name or changed key personnel on its sponsor licence.
Cost – sponsoring workers is increasingly expensive
Employers who are sponsoring Skilled Workers must pay an “Immigration Skills Charge” for anyone they are sponsoring, unless an exemption applies. The cost is GBP1,000 a year for a large company and GBP364 a year for a small company within the meaning of the relevant legislation. The White Paper proposes an increase of 32% so it is aligned with inflation, and the aim is to use the revenue to upskill the domestic workforce – for example, to increase the number of apprenticeship places for UK residents.
The Immigration Skills Charge and the cost of the Certificate of Sponsorship must not be passed on to sponsored workers. Legislation was recently introduced, with effect from 9 April 2025, which prevents employers from making salary deductions for other immigration costs (for example, the Immigration Health Surcharge and visa application fee) where the deductions would take the worker’s salary below the salary threshold applicable to their role. Accordingly, sponsor licence holders may wish to revise the wording in “claw back” agreements with sponsored workers.
If existing Skilled Worker visa holders have to wait for ten years instead of five to apply for Settlement as per the earned settlement policy proposals in the White Paper, this becomes costly for employers given the high government fees for sponsored visas. If an applicant needed to apply to extend their stay in the UK for another five years as a Skilled Worker, the Immigration Health Surcharge alone would cost an additional GBP5,175 (plus the same amount for adult dependants and about half of that amount for each child).
Key policy changes in the White Paper
Increase to skill level and salaries
The Boris Johnson government lowered the qualification threshold for the Skilled Worker route from RQF6 (Graduate level) to RQF3 (A-level equivalent). Much of the reasoning behind the policy change was to address the reduced access from the EU to the UK labour market following the end of the post-Brexit transitional period on 31 December 2020.
The White Paper reverses the change and proposes an increase in the minimum skill level for Skilled Workers to RQF6 (Graduate level) from RQF3 (A-level equivalent). It also proposes a further increase to salary levels, which were already significantly raised little more than a year ago.
About 180 occupations will no longer be eligible for new Skilled Worker visas. There are likely to be exceptions for lower skilled workers in sectors experiencing labour shortages, but this cohort of workers will not be permitted to bring dependants to the UK.
Existing Skilled Worker visa holders will continue to be able to renew their visa, change employment and undertake supplementary employment in currently eligible occupations below RQF6.
The technical annex to the White Paper anticipates that raising the skill level and salary may reduce net migration “inflows” by about 40,000 in the next yearly figures. This change is projected to make the biggest difference to net migration figures and is, therefore, likely to be one of the changes that will happen in Summer 2025.
Creation of a Temporary Shortage List
The “Immigration Salary List”, which offers discounts from the base salary thresholds, is set to be abolished and replaced with a “Temporary Shortage List”. The Temporary Shortage List will initially contain occupations below degree level – ie, those from RQF 3 to RQF 5 – that the Migration Advisory Committee has recently considered to be in shortage.
The longer-term aim is that the Migration Advisory Committee will consider whether sectors have a proper workforce strategy that maximises the use of the UK workforce before sectors can be added to the Temporary Shortage List. This means that sectors such as health and social care, construction and hospitality, and others that employ a high proportion of overseas migrant workers will be expected to publish and comply with a workforce strategy. The workforce strategy is expected to detail the steps to be taken on skills, training and broader conditions, and it must also include proposals for the economic engagement of the economically inactive domestic labour force.
A Labour Market Evidence Group is to be established to gather and analyse data on the state of the UK workforce, with a focus on sectors that have high levels of reliance on migration for their workforce.
Changing sponsors
The government will “explore” making it easier for workers to move between licensed sponsors for the duration of their visa, which may mean that Skilled Workers who are changing jobs to work for a new sponsor do not need to make a new application.
Earned settlement and citizenship policy changes
The White Paper emphasises that settlement and citizenship should be “earned”.
The White Paper does not define “long-term contribution” or say how much of a reduction on the ten-year qualifying period would be available. It is not clear whether the ten-year qualifying period will apply to those who are already in the UK as a Skilled Worker before the policy is implemented.
The technical annex to the White Paper states:
“For those cohorts affected by the increase in the standard qualifying period for settlement to ten years visa demand is likely to fall, as some will be deterred from coming to the UK as a result of the longer time to settlement. Also, a number of those currently in the UK are likely to leave due to it taking longer to gain settled status.”
The government was, therefore, asked in a Parliamentary Question on 21 May 2025 whether the changes to the qualifying period for settlement from five to ten years will impact people on the Skilled Worker route who are already in the UK. The government said in response that it will consult on the earned settlement scheme later this year, and will provide details at that stage.
The government was also asked whether people with a Hong Kong British National (Overseas) visa would be affected, and the minister for migration and citizenship replied in a similar vein. It is, therefore, not certain which routes may be exempted.
Given that the over-riding aim of the current government is to reduce net migration, it is possible that at least some Skilled Workers who are already in the UK will not be eligible to apply for settlement at the end of the five-year qualifying period. However, the position will not be known until later in 2025 when the consultation is completed.
Other non-sponsored work routes
Youth Mobility Scheme
The UK currently operates a reciprocal Youth Mobility Scheme with a number of other countries, which allows adults aged between 18 and 30 (or 18–35 for some nationalities) to travel, work and study in the UK for a time-limited period of two years (or three years for some nationalities). The government is keen to emphasise that it is a capped, age-restricted and time-limited scheme, which does not equate to free movement. If it is expanded to EU countries, it would be a welcome boon to UK businesses that are finding it difficult to fill skills gaps from the domestic labour market.
Graduate
Many Student visa holders obtain a Graduate visa that allows them to stay in the UK once they have successfully completed their eligible studies to work or look for work. The government plans to reduce the duration of Graduate visas from two years to 18 months. The reason for this policy change seems to be embedded in the technical annex to the White Paper, which anticipates that a reduction of 12,000 may be applied to net migration figures if the Graduate visa is shortened to 18 months.
High Potential Individual
The High Potential Individual route is a two-year visa that allows individuals who have eligible degree-level qualifications from one of 50 eligible education institutions on the “High Potential Individual visa: global universities list” to work in the UK for up to two years. The plan is to “explore a targeted and capped expansion”, and potentially double the number of eligible institutions from 50 to 100.
Global Talent strategy
The White Paper proposes faster routes for people who can grow “strategic industries” and to make it “easier for top scientific and design talent to use the Global Talent visa”. The government also wants to open more places on its scheme for research interns, with a particular focus on Artificial Intelligence. There will be a review of the Innovator Founder visa so that Student visa holders may be able to switch into the Innovator Founder route and start a business in the UK. The technical annex to the White Paper suggests there may be a small increase of 3,000 people a year.
It is not clear exactly how these changes will be focused to “supercharge UK growth in strategic industries”, but speeding up Talent visas and incentivising students to choose the UK as a place to establish their business and career are welcome but limited reforms to the business landscape as a whole.
Conclusion
What remains to be seen is whether the reduction in net migration will foster economic growth in line with the government’s broader economic aims. Government research published on 12 May 2025 confirms that:
“Skilled Worker and Senior or Specialist Worker (Global Business Mobility) main applicants recorded much higher average Income Tax than the average UK taxpayer in 2023 to 2024 (approximately £24,800 and £25,500, respectively, compared to £7,800)…”
According to the thorough analysis by Sir Jonathan Portes in his blog post of 22 May 2025, entitled “Immigration is down, should the government be happy?”, the contribution of the overseas workforce to the UK economy may become clearer when the Office for Budget Responsibility publishes its latest fiscal forecast in October 2025.
Businesses also need solid commercial reasons to set up and expand into the UK. The UK sponsored worker routes are more expensive compared with many other high-value economies, and salary thresholds are comparatively high. Businesses outside London and the South-East, smaller companies and some industry sectors stand to be disproportionately affected by the changes. In addition, many start-ups would welcome equity counting towards earnings thresholds so that hiring highly skilled staff is more commercially viable.
Businesses need to brace themselves once again for more uncertainty and further changes to skilled migration routes. They must continue to ensure that they have robust processes in place to prevent illegal working and to fulfil their compliance obligations if they hold a sponsor licence.
The White Paper acknowledges there will be consultation in many areas but some of the most consequential changes in skill level and salary, together with the 32% increase to the Immigration Skills Charge, may be introduced this Summer. The government’s position is probably that it must act swiftly in view of high net migration figures combined with a sluggish economy.
It is crucial that policymakers and businesses engage now to ensure that, in the words of numerous politicians, the UK is (and stays) “open for business”.
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