Quick Hits

• The UK government has published a white paper which proposes significant changes to the immigration rules, including a 32 percent increase in the Immigration Skills Charge.
• The proposed changes include extending the qualifying period for Indefinite Leave to Remain under the Skilled Worker route from five to ten years and raising the minimum skill level to RQF Level 6.
• The Graduate visa period is proposed to be reduced from two years to eighteen months, prompting employers to consider switching Graduate visa holders to the Skilled Worker route to avoid higher fees.

Prime Minister Keir Starmer announced the proposed changes in response to record-high migration levels, with net migration having quadrupled in 2023.

The proposed changes are not immediate and will need to be assessed and debated in Parliament before any changes come into effect. In this article, we summarize the key proposed changes specifically in relation to the Skilled Worker and the Graduate visa routes.

Increased Immigration Skills Charge

The Immigration Skills Charge (ISC) is proposed to increase by 32 percent in line with inflation. This will be the first time the ISC fee has been increased since its introduction in 2017.

For small sponsors, this would increase from £364 to £480 per year. For medium/large sponsors, this would increase from £1,000 to £1,320 per year.

Qualifying Period for Indefinite Leave to Remain

Under the current rules, those under the Skilled Worker route can apply for indefinite leave/settlement after five years’ continuous residence in the UK, subject to meeting the requirements. The proposal looks to extend this to ten years, though there may be an opportunity to reduce the qualifying period based on unspecified “Points-Based contributions to the UK economy and society.” At this stage, it is not clear what this entails, and further details should be issued in due course.

The white paper does not provide a detailed roadmap for handling transitional cases, and it is not yet clear whether those who have already started their five-year Indefinite Leave to Remain (ILR) journey will be exempt from the new ten-year requirement.

Skilled Worker Route

Raising the Skill Level

The proposal aims to raise the minimum skill level for Skilled Worker roles to RQF Level 6 (i.e., graduate level).

Under the current rules, Skilled Worker roles can be sponsored at RQF Level 3 (i.e., A-level equivalent). The skill level was lowered by the UK government in 2020 which led to a large increase in work visas and concerns with an overreliance on international recruitment, rather than sourcing talent from within the United Kingdom. The increase aims to address the government’s “concerns about exploitation of overseas recruits.”

The paper confirms the raised threshold will apply to new Skilled Worker applicants. Existing Skilled Worker visa holders can continue to extend their visa, change employment, and take supplementary employment in currently eligible occupations below RQF 6.

Raising the Salary Threshold

The proposal confirms the salary thresholds under the Skilled Worker route will increase. Details have not been provided yet on the new thresholds.

Abolishing the Immigration Salary List

The Immigration Salary List, which provides a salary discount to eligible occupation codes, will be abolished. The government has asked the Migration Advisory Committee (MAC) to review the current salary requirements and discounts to ensure salary thresholds reflect the new changes to the immigration system.

English Language Requirement

The following changes are proposed for the English language requirement:

• For main applicants under the Skilled Worker route, the minimum English proficiency level will increase from B1 (intermediate) to B2 (upper-intermediate).
• The English language requirement will extend to adult dependants at a reduced level. They will need to meet a minimum of A1 (basic user) level and will be required to show progression for visa extensions (to A2 level) and settlement (to B2 level). Under the current rules, dependants are not required to meet the English language requirement.

Graduate Visa Holders

It is proposed that the Graduate visa period will be reduced from two years to eighteen months.

Given the proposed fee increase and salary threshold changes to the Skilled Worker route, employers may wish to consider switching those on a Graduate visa to the Skilled Worker route as soon as possible to avoid paying higher application fees which could be implemented this year.

Next Steps

At present, there is little detail on the proposed changes. In light of the recent proposals, particularly those affecting the Skilled Worker route, employers may wish to consider the following practical steps:

• Reviewing workforce needs: Consider conducting an internal audit and aim to identify roles that are currently filled or may be filled by Skilled Worker visa holders. An assessment may be made on how the proposed reforms (e.g., higher English language and skill levels) could affect future recruitment needs.
• Having clear lines of communication with existing Skilled Worker visa holders: Consider assessing the potential impact on current sponsored workers and provide reassurance regarding the actions they plan to take to mitigate any negative effects if the proposals are implemented.
• Reviewing current recruitment strategies: Where practicable, consider expediting the recruitment and sponsorship of Skilled Workers before the increased fees take effect.
• Reviewing recruitment budgets: Consider preparing for the potential increase in visa application fees and overall costs associated with sponsoring Skilled Workers.