Employment Law Digest May 2025 – Understanding the Immigration White Paper: Key Takeaways for Employers

The White Paper, titled “Restoring Control over the Immigration System”, seeks to drastically reduce UK net migration while linking our immigration system to skills and training of the domestic workforce to increase the country’s productivity and growth. The government’s stance in the White Paper is that international talent is still welcomed by the UK but that domestic workers must be prioritised.

The proposals set out in the White Paper are just that, proposals, they are not law and the Immigration Rules have not yet been updated. For now, nothing has changed, but significant change is coming, and providers need to stay informed and be proactive.

Changes to the Skilled Worker visa

It goes without saying that the impact of these changes will make it more difficult for employers to recruit using the Skilled Worker visa. In particular:

• To be eligible for sponsorship, the skill level for the role will need to meet RQF 6 (degree level). This is a reverse of the change previously introduced in 2020 to reduce the required skill level, which since then, has been set at RQF 3 (A-Level). This will mean that around 180 occupations will no longer be eligible for the Skilled Worker visa and is likely to impact sectors including hospitality, healthcare, the creative industry and manual trade work significantly. Existing Skilled Worker visa holders will not be affected by this change. The White Paper gives comfort that they will be able to renew their visas, move between employers, and take up supplementary employment in occupations at RQF 3, but for all new Skilled Worker applicants (whether applying from overseas or from within the UK to move from a different visa route), the new rules will apply.
• The Migration Advisory Committee (MAC) will undertake a “thorough review” of salary requirements and discounts with a view to the salaries for sponsorship being increased. We do not know yet what this will look like in pounds and pence or where increases may be seen. It could be that the salary discount currently enjoyed by roles on the Immigration Salary List is removed for roles on the Temporary Shortage List, or role specific salary increases, or it could be a more wide-ranging increase in the minimum threshold (currently set at £38,700pa).
• The Immigration Salary List is to be abolished and replaced with the “Temporary Shortage List”. The MAC will advise the government on which roles below RQF 6 should be included on this list. Roles will only be eligible for inclusion on the List where there have been long term shortages and where there is a workforce strategy in place. In addition, to be able to sponsor an employee for a role on the Temporary Shortage List, the employer will need to show that they are “committed to playing their part in increasing recruitment from the domestic workforce”. How an employer will do this is yet to be revealed. Roles will only be included on the List for a time limited period (duration to be confirmed) and may be subject to a cap on the number of individuals who can be sponsored in the role across all employers. In order to reduce migration in this area further, sponsorship of any jobs on the List will include new restrictions on bringing dependants – presumably that dependant visas aren’t permitted, just as the Home Office introduced for Care Workers and Senior Care Workers on 11 March 2024.

An end to Sponsorship of Care Workers

The adult social care sector has felt the brunt of the Home Office’s policy changes over recent years and is one that the White Paper specifically targets in an effort to bring “the long-term reliance on overseas workers” to an end. This will be done by ending overseas recruitment for social care visas.
With effect from a future (as yet unknown) date, new applications for sponsorship of Care Workers and Senior Care Workers will no longer be allowed. This will prevent providers from recruiting from overseas to fill vacant care roles.

A small mercy comes in the form of a transitional arrangement. Those who already have the right to work in the UK will continue to be able to extend their existing visas if sponsored as carers and others who are already in the UK will be able to continue to move to a sponsored Skilled Worker Health and Care visa to work as a carer. This will however continue to be subject to the requirement to first attempt to recruit from the existing pool of displaced care workers in the UK, unless an exception applies. For more information, please see our previous article in this topic here. These transitional arrangements will be in place until 2028, but, the White Paper specifically notes that this will be kept under review, therefore giving no guarantee of the duration or terms of this concession.

The White Paper reiterates that the need to utilise overseas recruitment in the sector stems from “historic levels of poor pay and poor terms and conditions leading to low domestic recruitment” and repeats its commitment to establishing Fair Pay Agreements which it says will “move the UK away from dependence on overseas workers to fulfil our care needs”.

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Increased Costs

The cost of sponsoring will increase. Having only just increased the cost of assigning a Certificate of Sponsorship from £239 to £525 on 9 April 2025, employers will be hit by a further increase when the Immigration Skills Charge increases by 32%. This is the levy payable per year of sponsorship and the cost depends on whether the employer is classed as a medium/large sponsor or a small or charitable sponsor. This means that businesses will see an increase from £1,000 to £1,320 per year of sponsorship and £364 to £480 per year respectively.
This change comes after:

• an increase to the price of visa application fees in April 2025;
• the explicit prohibition on sponsors passing the cost of sponsorship to the employee from 1 January 2025; and importantly
• the announcement that from 9 April 2025 the provision of loans to employees for visa costs has a direct impact on the calculation of the minimum salary for sponsorship.

For more information, please see our previous article here.

New English language requirements

In addition, it will become more difficult for international recruits to obtain a Skilled Worker visa and retain it due to the forthcoming increase to English language requirements. The level of English language ability to be proven as part of the initial visa application is increasing and employees will also be required to evidence progression in their speaking, reading, writing and listening when they apply to extend their visa, and further progression when they want to apply to settle in the UK.

These English language requirements will also be extended to adult dependants of Skilled Workers and Students who do not currently have to prove their abilities.

Reduced duration of Graduate visas

Currently, international students graduating from approved universities who have successfully completed an eligible course are able to apply for a Graduate visa which permits them to live and work in the UK, in any occupation with any salary, for two years, or three years for PhD graduates. Moving forwards, the duration of a Graduate visa will be reduced from two years to 18 months and the impact of this is expected to be widely felt. In the short term, this is likely to force employers, where they can afford to, to accelerate the sponsorship of international graduates for the Skilled Worker visa in the coming months and potentially years to secure their right to work with the employer.

Settlement and Citizenship must be “earned”

Skilled Workers and their dependants are currently able to apply to settle in the UK with Indefinite Leave to Remain after 5 years continuous residence in the UK and can then apply for British Citizenship 12 months later.

Following implementation of the White Paper’s proposals, the standard qualifying period for settlement will double to 10 years. This change will not impact partners of British citizens who will continue to be able to apply after 5 years, but will be a dramatic change for those on work visas and their family members, potentially making relocation to the UK less attractive. The BBC has today confirmed its understanding that “a document published in the coming weeks will make clear the government is preparing to apply the 10-year qualifying period to those who are already in the UK as well as to new visa applicants” which shows a worrying direction of travel for visa holders currently in the UK.

Individuals will however have the opportunity to settle earlier and reduce the 10 year qualifying period based on “contributions to the UK economy and society”. What this looks like in reality remains to be seen.

When will these changes be introduced?

This is the million dollar question! The White Paper does not give any dates for introduction of these changes. For some of the proposals we are told that consultation will take place later this year, for others there is mention of changes taking place over the course of this parliament.

Immediate action points for employers in the care sector

• Staying informed is crucial. We will be circulating newsflashes and keeping our Visa Guidelines Hub up to date with the latest announcements.
• Keeping open channels of communication with staff. Employees who rely on a visa for their right to work and their family members will have a lot of questions and uncertainty. Providing support and information so far as you are able to will be crucial. We can provide a tailored communication to your international workforce regarding these changes and their impact for a fixed fee of £300 plus VAT.
• Workforce planning has never been more important. Reviewing visa expiry dates in line with the potential 3-year transition period for UK based carers is a must. Identifying the population of graduate and other non-sponsored visa holders will also allow you to begin to formulate a sponsorship strategy in anticipation of an increase in requests from existing members of staff.
• This in turn will allow you to review and update budgets to build in the increased sponsorship costs and longer sponsorship durations to take employees to settlement.
• Supporting existing employees with developing their English language skills will be beneficial for the organisation, your customers and the employee who will need to meet stricter requirements on visa extension and beyond.
• Don’t take your eye off right to work checks and sponsor compliance. The government is continuing to invest money and resource in compliance and as recently discussed here is planning to extend the right to work check and civil penalty scheme in the near future.

To discuss these changes and actions with a member of Ward Hadaway’s Immigration Team, please contact us.