Immigration update: Government announces key changes as part of five-point immigration plan

The minimum salary threshold to qualify for a Skilled Worker visa is set to increase from the current figure of £26,200 to £38,700. Whilst this change will not apply to individuals applying for Health and Care visas to protect that sector, it represents an increase of nearly 50% for employers recruiting into other sectors and puts the threshold nearly £4,000 higher than the median average UK salary of £34,963. It also represents a sharp change in direction for the post-Brexit immigration system which was intended to make it easier for employers to recruit skilled workers.

Under the new measures, overseas care workers will no longer be able to bring family dependents (including a spouse, civil partner, and children under the age of 18) to the UK. The government announced that this is being introduced in order to end the 'abuse of the health and care visa'. It comes against the backdrop of an estimated 120,000 visas granted to the family dependents of care workers last year and the UK government's desire to reduce net migration.

The government has said it intends to end the 20% salary discount for roles on the Shortage Occupation List ('SoL'). This list comprises roles which are deemed by the government to be in short supply within the UK resident labour market (including various tech sector jobs). This change will mean that employers will now need to potentially increase their salary banding for particularly in demand roles to £38,700. The government has said it also intends to create a new 'immigration salary list' to replace the SoL with a reduced number of occupations included. It is currently unclear which jobs from the current SoL will feature on the updated list and whether the same level of salary reduction will apply. Roles on the current SoL also currently benefit from reduced government fees, so this change could also potentially represent a significant additional cost for employers who regularly hire individuals into these roles if the reduction in government fees is removed.

The minimum level of income required by British nationals or those settled in the UK who wish to bring dependant family members to the UK will also increase significantly from £18,600 to £38,700. Whilst the UK government have not yet confirmed if they will put in any transitional provisions or if this change will just apply to new entrants, significant concerns have been raised that this measure will particularly impact lower-income British citizens, particularly women and younger people who tend to earn lower wages.

Finally, the Government will also ask the independent Migration Advisory Committee to undertake a review the Graduate route, to 'prevent abuse and protect the integrity and quality of UK higher education'. The UK government introduced the Graduate route in July 2021 as part of the UK's post Brexit immigration system and it allows successful applicants to stay in the UK to work unrestricted for up to two years after completing a bachelor's degree in the UK (or three years for PhD holders). The current route is highly beneficial for employers as it enables them to recruit graduates into entry level roles. As the Graduate visa is not employer sponsored, it also provides flexibility because employers are not committing to the significant costs and administrative burden associated with sponsorship. Employers will therefore want to keep an eye on any future changes here.