The UK government has unveiled a series of immigration reforms aimed at reducing the number of migrants entering the country by around 300,000 per year. The measures come in response to recent data showing net migration to the UK reached a record high of 745,000 in 2022.
What are the key changes?
The UK government has announced a five-point plan to reduce immigration numbers. The main changes are:
- Skilled Workers: Increasing the minimum salary threshold for skilled worker visas from £26,200 to £38,700, although health and care workers are exempt. The new level of £38,700 is roughly equivalent to the UK’s median wage.
- Shortage Occupations: Eliminating discounts that enabled employers to hire migrants at 20% less than the 'going rate' for shortage occupations. The shortage occupation list will also be reviewed and reduced.
- Health and Care visas: Banning overseas care workers from bringing dependents when immigrating via the Health and Care visa route. Care firms that want to sponsor people for visa applications will need to be regulated by the Care Quality Commission.
- Family visas: Lifting the income threshold for family visas to the same £38,700 level as skilled worker visas to limit dependents. The current threshold is £18,600.
- Student visas: Following the tightening of the rules relating to who can bring in family members on student visas earlier this year, the government will ask the Migration Advisory Committee to review the graduate route to address potential abuse and protect education quality.
What is the background to these announcements?
The UK government's new immigration plan comes amid rising public pressure to address record-high migration levels. Official statistics show net migration soared to 745,000 in 2022 - the highest level since current records began.
Record high migration figures pose a major political dilemma for PM Rishi Sunak and the Conservatives, who have repeatedly vowed to curb immigration since 2010 and particularly post-Brexit.
When will the new measures be implemented?
The changes are due to take effect in Spring 2024, aiming to reduce immigration by up to 300,000 people annually once fully implemented.
Are there criticisms and concerns about the new measures?
Some stakeholders have strongly criticised the planned changes. Employer groups argue the reforms will exacerbate hiring difficulties, raise labour costs, and disadvantage smaller regional employers unable to match London wage levels.
In particular, employers currently utilising the Skilled Worker route to employ migrant workers in lower skilled roles may find it impossible to pay such a high salary. Those in the hospitality sectors are expected to be particularly disadvantaged, since there continues to be a generally accepted shortage of staff in this industry. The government so far has not given any indication of there being any plan to support any industry other than the care sector.
It also appears as though the government is effectively suggesting that years of using the Standard Occupational Classification (“SOC”) codes for jobs under the Skilled Worker visa, was the wrong approach. The SOC codes set out in the Immigration Rules (taken from the Office for National Statistics) are supposed to provide the “going rate” salaries and these are the minimum rates that must be paid to visa applicants (in many cases already above the general minimum of £26,200). It appears difficult to now suggest that migrant workers have been undercutting settled worker salaries or are in any way contributing to “cut price labour from overseas” without casting doubt over the entire SOC code system.
Is the Immigration Health Surcharge (IHS) increasing?
Yes. In addition to measures to reduce migration, the government will make sure that “migrants coming to the UK make a fair financial contribution so that public services, including the NHS, are not taken advantage of” by increasing the annual Immigration Health Surcharge for most applicants from £624 to £1,035.
The government advises that assuming the legislation receives parliamentary approval, the increase would come into force on 16 January 2024 (or 21 days after the measure is finalised, whichever is later).
Did The Home Office also increase visa fees?
The Home Office increased a raft of UK visa, settlement and nationality fees that took effect from 4 October 2023. The fee increases affected a wide range of applications, including many work and study visas including those covering UK entry clearance, indefinite leave to enter, indefinite leave to remain as well as applications for leave to remain in the UK.
How 3CS can help
For further information on these measures or help and advice with any business immigration matter, please get in touch with your usual 3CS contact.