The recent unveiling of the UK government’s five-point plan to curtail immigration has sent ripples through various sectors, leaving employers grappling with impending changes. As the government takes steps to address concerns over rising net migration figures, businesses are urged to stay informed and adapt to the evolving landscape.
Skilled Worker Salary Threshold Surge
One significant change is the substantial increase in the minimum salary for a Skilled Worker visa, jumping almost 50% from £26,200 to £38,700. While Health and Care visas will be exempt, concerns linger over the potential strain on employers, especially in regions with lower median earnings. Calls for regional salary thresholds to address local skills shortages have gone unanswered, raising questions about the government’s commitment to “levelling up” the country.
As of the tax year ending on April 5, 2023, the median annual earnings for full-time employees across the UK stood at £34,963, highlighting regional income disparities. This shift in salary requirements will undoubtedly lead to a substantial increase in ongoing costs for employers sponsoring migrant workers, coupled with the upcoming 67% surge in the immigration health surcharge in January 2024.
Care Workers Facing Family Separation
The decision to prevent overseas care workers from bringing family dependants to the UK has sparked controversy. Sponsors in the care sector will now need to be regulated by the Care Quality Commission to support the government’s efforts to combat visa-related exploitation. While the restriction on dependants may discourage potential workers, the Home Secretary insists it will only impact the number of dependant visas, not the overall recruitment of care workers.
Critics, including Unison and the Royal College of Nursing, argue that separating immigrant carers from their families is unnecessarily harsh and will exacerbate workforce shortages, especially in the already strained National Health Service (NHS).
Shortage Occupation List Rebrand
The rule allowing a 20% salary discount for workers on the shortage occupation list is being phased out. Instead, the government plans to introduce an Immigration Salary List, retaining a general threshold discount. Employers must now pay the higher amount of the salary threshold or the government-determined “going rate” for sponsored occupations. While this change removes the 20% discount, the minimum wage threshold for occupations on the Immigration Salary List remains lower than the Skilled Worker minimum threshold of £38,700.
Graduate Visa Route Under Scrutiny
The Home Secretary has tasked the Migration Advisory Committee with reviewing the Graduate visa route, which allows international graduates two years (three for doctoral graduates) to find skilled employment in the UK. The rationale behind this review and potential changes to the new entrant criteria for Skilled Workers remains unclear.
Minimum Income Requirement Doubled for Family Visas
In a contentious move, the minimum income requirement for bringing a dependent partner or child to the UK on a family visa will nearly double from £18,600 to £38,700. This decision disproportionately affects British citizens, requiring them to earn almost double the minimum wage to reunite with loved ones. Sponsored migrants, on the other hand, face a comparatively simpler process, with the salary requirement assessed after their arrival.
This substantial increase in the minimum income requirement is poised to create challenges for younger people, working-class individuals, and those residing outside London, as revealed by the latest Office of National Statistics data. The impact will be particularly acute for women, ethnic minorities, part-time workers, and mothers.
Conclusion
As the UK immigration landscape undergoes these significant changes, employers and sponsorship licence holders are urged to stay vigilant and adapt their strategies accordingly. The Home Secretary’s assurance that existing visa holders will not be disadvantaged offers some reassurance, but clarification on its application across various routes is urgently needed. Businesses must proactively plan staffing decisions, and individuals in relationships must navigate these changes to plan their lives effectively. Stay tuned for further updates, as details of the phased implementation of these measures are expected in the coming months, possibly around February or March 2024.
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