Important changes to UK Immigration Rules for businesses

On 1 July 2025, the Home Office announced a wide-reaching set of changes to the Immigration Rules, which will take effect from 22 July 2025. The full details were published in the ‘Statement of Changes to the Immigration Rules (HC 997)’ and demonstrate the Governments move to ‘Restoring Control Over the Immigration System’ as outlined in the aptly named ‘White Paper: the stated aim being to reduce the UK’s reliance upon foreign labour for skilled work and consequently, reduce immigration to the UK’.

Amy Sergison, partner, and Imaan Choudry, solicitor, both in our employment team, explain more about the upcoming changes.

What are the changes?

Increase in salary thresholds 

The general salary threshold for the Skilled Worker route will rise again from £38,700 to £41,700: the second significant rise in 12 months. In April 2024 the general salary threshold was increased from £25,600.

In addition to the increase in the general salary threshold, a number of minimum going rates for occupations eligible for sponsorship as skilled work will see a significant increase. For example, ‘Human Resource Managers and Directors’ is increasing from £49,400 to £52,900. Points earned by applicants for skilled worker visas will continue to be “tradeable” for certain qualifications (including PhDs), in some circumstances. The new entrant rate will also continue to enable a reduction in salary payable to some employees, provided conditions for salary payments at new entrant rates are met.

Increase in the new entrant rate 

This will rise from £30,960 to £33,400.

Skill levels 

The Skilled Worker route will only be accessible for those with RQF Level 6 qualifications, which are equivalent to a UK bachelor's degree, as set out on a prescribed list of eligible occupations. Currently, skilled work is considered to be RQF Level 3 and above (A-Level equivalent). Applicants already sponsored as a skilled worker but sponsored for an occupation considered below RQF Level 6 will not be affected immediately due to proposed transitional arrangements in place, but the Home Office have confirmed these transitional arrangements will not be in place indefinitely. It may be that some workers currently sponsored as skilled workers will not be in roles capable of sponsorship when their current skilled worker visas expire.

Policies and procedures

Organisations will be required to have stringent policies and procedures in place dealing with training UK workers with the intention of retaining them within employment: as part of the government’s policy to employ more domestic workers and engage those considered to be “economically inactive”. Failure to adopt these policies could result in an organisation losing its sponsor licence, as this will be considered a breach of sponsor licence obligations.

Temporary Shortage List (TSL)

The Immigration Salary List will eventually be phased out; however, it will remain in place until December 2026. In the meantime, the new Temporary Shortage List (TSL) will run alongside that for roles that fall below RQF Level 6 and are deemed crucial to industrial strategy or building infrastructure. Roles sponsored under the TSL will not be eligible for visa or salary discounts, nor can dependents apply for a visa under the TSL.

Care and senior care worker roles will be closed for new applicants 

We have discussed this in more detail below.

How might this impact your organisation? 

If your organisation currently sponsors, or plans to sponsor, employees — including those on time-limited graduate visas — you may want to act before July 22. After that date, new rules will apply, so now is a good time to either sponsor roles or help graduate visa holders switch to the Skilled Worker route. Doing so now will enable your organisation to take advantage of the current “going rate” salary thresholds and skill levels.

Any employee currently sponsored as a skilled worker retains the right to live and work in the UK under the current immigration rules until their visa expires. At this point, you should assess whether the role is capable of sponsorship, including a consideration of whether the occupation is still considered at the requisite skill level and is paid at the appropriate rate. Approximately 111 occupations will be removed from the list of roles eligible for sponsorship after 22 July 2025, significantly narrowing the scope of possible occupations for sponsorship. An unfortunate but intentional outcome of the changes to the Immigration Rules meaning many roles will no longer be capable of sponsorship.

What do the changes mean for the care sector?

The salary threshold for most Health and Care Visa holders, who are paid according to national pay scales, remains unchanged at £25,000.

Whilst the salary threshold for most roles under the Health and Care visas remains unchanged at £25,000, in a sector where international recruitment is widely relied upon, changes to the Immigration Rules will prevent an organisation sponsoring an individual as care workers or senior care workers (standard occupation code 6135 and 6136) from 22 July 2025.

Transitional arrangements will be in place for some in-country applications for individuals already working (not necessarily as sponsored skilled workers) for their employer as a care or senior care worker provided they have been working in this capacity for at least 3 months prior to their application, and their employer is registered with the Care Quality Commission. This may also enable an employee to “switch” from another visa route. The transitional arrangements will apply until 22 July 2028.

In the meantime, the Home Office are aware that other ‘similar’ codes could be exploited so there are plans to make some changes to the requirements for any such occupation codes to help avoid this.

What other changes are coming?

·        Changes to the English language standards – by the end of the year, the Home Office plan to implement higher standards for those already taking English language tests as well as requiring partners of people moving to the UK to have basic English language in order for them to be eligible to qualify for a dependant visa.

·        Increase to the Immigration Skills Charge (ISC) – again, likely to come into place by the end of this year, the government plans to increase the ISC by 32% to bring it in line with inflation rates.

·        Framework for family visas – a new framework of family visas will be introduced although the details of that is not yet known.

·        Increase in permanent residence qualifying period – in most cases, this will be increased from 5 years to 10 years.

·        Graduate visas – they will be issued for a reduced period of 18 months, rather than the current 2 years.

If you are affected by these changes or have any queries at this stage, please do get in touch with Amy Sergison via [email protected] or 0191 2117995 or Imaan Choudry via [email protected] or 0191 2117894

FAQs

What is the salary threshold for a skilled worker under UK Immigration Rules? 

Currently, this is £38,700 – this will rise to £41,000 after 22 July 2025.

What is the new entrant salary rate under UK Immigration Rules?

Currently this is £30,960 – this will rise to £33,400 after 22 July 2025.

What qualifications do you need to have to be eligible for the Skilled Worker route under UK Immigration rules?

Currently, skilled work is considered to be RQF Level 3 and above (A-Level equivalent). After 22 July 2025, this route will only be accessible for those with RQF Level 6 qualifications, which are equivalent to a UK bachelor's degree, as set out on a prescribed list of eligible occupations.