The July 2025 Immigration Changes: A Strategic Overview for Employers
4th July, 2025
The UK’s immigration system is undergoing a significant overhaul. From 22 July 2025, a series of reforms will come into effect that will reshape the Skilled Worker route and impact how employers across multiple sectors engage with international talent.
These changes are part of the government’s broader strategy to reduce net migration, raise skill thresholds, and encourage domestic workforce development. However, for many employers—particularly those in health and social care, hospitality, and construction—the reforms present immediate operational and strategic challenges.
This article outlines the key changes and offers practical guidance for employers navigating this evolving landscape.
Skilled Worker Route: A shift toward higher skills and salaries
From 22 July 2025, the minimum skill level for the Skilled Worker route will rise from RQF Level 3 to RQF Level 6, aligning eligibility with degree-level roles. This change will remove a substantial number of occupations from the list of eligible roles, including many that have historically supported critical sectors.
In parallel, the general salary threshold will increase to £41,700, with no transitional relief. This will have a disproportionate impact on sectors where salaries are traditionally lower, and where employers have relied on international recruitment to fill persistent labour shortages.
Key considerations for employers:
- Review your current and planned sponsorships to ensure roles meet the new skill and salary thresholds.
- Consider whether roles can be restructured or regraded to meet the new criteria.
- Engage with workforce planning teams to assess the long-term viability of international recruitment under the revised framework.
Closure of overseas recruitment for care workers
One of the most consequential changes is the closure of the Skilled Worker route to new overseas care workers and senior care workers. For further information, please see our dedicated care sector update here.
Transitional protection for existing workers
Clause SW 6.1B of the Immigration Rules provides a critical safeguard for employers and workers affected by the new skill threshold. It allows individuals already in the UK on a Skilled Worker visa in roles below RQF Level 6 to:
- Extend their leave
- Change sponsors
- Take supplementary employment
This provision is time-limited and will remain in place until 22 July 2028, unless amended earlier. Employers should act promptly to ensure eligible workers are supported through the transition.
Introduction of the Temporary Shortage Occupation List (TSOL)
The new Temporary Shortage Occupation List (TSOL) will, for now, run alongside the Immigration Salary List. It is designed to provide short-term access to international labour for critical sub-degree roles, but with significant restrictions:
- No dependants permitted
- No salary threshold discounts
- No visa fee concessions
- Valid only until the end of 2026
Employers should view the TSOL as a temporary measure and not a long-term solution. Workforce planning should focus on upskilling domestic staff and reducing reliance on international recruitment for lower-skilled roles.
Further changes expected by end of 2025
The July reforms are part of a broader programme of immigration reform. Additional changes expected later in 2025 include:
- Stricter English language requirements
- Revisions to family migration routes
- Increases to the Immigration Skills Charge
- Changes to Indefinite Leave to Remain
- Changes to right to work checking requirements
Employers should remain alert to further developments and ensure their HR and compliance teams are prepared to respond.
Final Thoughts: A time for strategic reassessment
The July 2025 immigration changes represent a fundamental shift in the UK’s approach to international recruitment. While the reforms are intended to promote higher skills and reduce exploitation, they also place a significant burden on employers who have relied on overseas talent to meet operational needs.
Now is the time for employers to:
- Audit their current sponsorship arrangements
- Support existing sponsored workers through transitional provisions
- Reassess recruitment strategies and workforce planning
- Seek legal advice to ensure compliance and continuity
At Ward Hadaway we are supporting clients across sectors to navigate these changes with clarity and confidence. If you would like to discuss how these reforms affect your organisation and how we can support you and your workforce, please get in touch.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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