The Home Secretary's migration plans could significantly affect employers, dependents, and Brits sponsoring spouses on visas due for renewal.
Families and businesses are already expressing concerns about James Cleverly's 5-point plan and its potential repercussions.
Our business immigration team has been flooded with inquiries from worried families and businesses regarding the plan's effects. For businesses employing skilled workers or care services sponsoring workers, and families with a visa-holding partner, seeking advice before the spring implementation is crucial.
Prompted by the recent net migration figures nearing 750,000, the UK government has announced substantial changes to curtail migration.
The proposed changes set for spring 2024 include:
- A new salary threshold of £38,700 for overseas skilled workers, a nearly 50% increase from the previous £26,200, and over 10% higher than the average UK full-time worker's salary.
- Elimination of the 20% employer exemption for paying less than the going rate for jobs on the shortage occupation list.
- Prohibition of Health & Care Visa Workers from bringing family members to the UK.
- Increase of the minimum income threshold for sponsoring spouse/partner visas to £38,700 from £18,600.
- Commissioning the Migrant Advisory Committee for a review of the Graduate Visa route.
Although Health and Care Worker Visa Category will be exempt from the new salary requirement, they will no longer be allowed to bring dependents, particularly affecting care workers. These changes have caused dismay among NHS, Unison, the National Care Association, and various charities due to the sector's well-documented staff shortages.
It was only in August 2023 that jobs within the construction trade such as builders, bricklayers and carpenters were added to the shortage occupation list in a bid to stem a shortfall in labour within the construction industry. This shift in paying less than the going rate could render the shortage occupation list ineffective. Sectors relying on skilled migrant workers, like hospitality, manufacturing, and retail, will face challenges in retaining and recruiting staff due to these salary thresholds.
The proposed review of the Graduate Visa route also troubles the higher education sector. International students contribute significantly to the economy ( £41.9 billion the academic year 21/22 /) with UK universities fearing a reduction in student numbers due to earlier changes prohibiting postgraduate dependents.
The sudden increase in the minimum income threshold for family visas came as a shock and will notably impact low to mid-wage British Citizens seeking to sponsor overseas spouses. This change is expected to face intense scrutiny.
Despite calls for reduced migration, net migration figures amount to only 1% of the UK's overall population.
For businesses employing skilled workers or sponsoring care workers, it is advisable to evaluate recruitment needs before these changes take effect. Considering the planned IHS Surcharge increase in January, seeking advice on the impact on your business is prudent sooner rather than later.
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