UK Immigration White Paper: Key Changes Employers Must Prepare For

UK government has unveiled its latest immigration white paper, Restoring Control Over the Immigration System, introducing sweeping reforms aimed at reducing net migration while reshaping how businesses recruit overseas talent. With stricter rules on visa sponsorship, higher salary thresholds, and sector-specific restrictions, employers across industries must reassess their hiring strategies to remain compliant and competitive.

UK government is tightening the Skilled Worker visa with significant reforms. Most notably, eligibility will be restricted to roles classified at RQF Level 6 (graduate-level) and above, effectively excluding many mid-skilled positions. Salary thresholds will also rise, though exact figures are still under review. Meanwhile, the current Immigration Salary List (ISL), which provides salary discounts for certain occupations, will be abolished.

In its place, a more limited Temporary Shortage List will allow exemptions only for roles facing proven long-term shortages, subject to strict conditions: the Migration Advisory Committee (MAC) must endorse the need, the sector must have a workforce strategy in place, and employers must demonstrate efforts to recruit and train domestic workers first. Sectors heavily reliant on overseas talent, such as tech, finance, and engineering, should brace for heightened scrutiny and prepare for a sharper focus on UK-based hiring.

The Health and Care Worker visa will no longer accept new applicants from abroad, dealing a blow to the adult social care sector, which has long depended on international recruitment. Existing care workers can extend or switch visas until 2028, but the policy signals a clear push for employers to invest in UK-based training and recruitment. Care providers must urgently review workforce planning to mitigate staffing gaps.

A Labour Market Evidence Group (LMEG), comprising industry bodies and government agencies, will assess skills shortages and recommend where immigration remains necessary. Employers should engage early with this group, providing data on recruitment challenges to shape future workforce strategies.

The Graduate visa, which currently grants two years of post-study work rights, will be cut to 18 months, reducing the time employers have to evaluate talent before sponsoring them. Businesses that frequently hire graduates must streamline their recruitment processes to secure skilled workers within this tighter timeframe.

The Immigration Skills Charge (ISC) will increase for the first time since its introduction, with fees rising to £480 per year for small sponsors and £1,320 for medium/large employers. Additional costs will apply for visa extensions, adding financial pressure for companies reliant on overseas hires.

Language requirements will tighten across multiple visa categories, including for dependants. Some migrants may need to demonstrate progress in English proficiency over time, potentially requiring employers to integrate language assessments into onboarding processes.

The residency period for indefinite leave to remain (ILR) will extend from five to ten years, though accelerated routes may be available for those with strong employment records or public service contributions. Employers should consider how this could impact staff retention and long-term career planning for migrant workers.

While the reforms aim to reduce reliance on overseas labour, they also present challenges for industries struggling with domestic skills gaps. Employers that adapt swiftly, balancing compliance with strategic hiring, will be best positioned to understand the UK’s evolving immigration landscape.

With over 20 years of experience and a commitment to excellence, Morgan Smith Immigration is your trusted partner for all your immigration needs. Contact us today to learn more about how we can assist you with UK Visa Applications. For any enquiries or assistance, call us at 0203 959 3335 or email [email protected].