UK Home Office Immigration What You Need to Know

Immigration White Paper - Understanding the Direction of UK Immigration and Labour Market Reform: Key Insights for Employers

A closer look at the UK Government’s proposed immigration reforms and what they mean for employers, sponsors, and workforce planning.

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In a previous post, I explored the UK Government's White Paper on immigration and labour market reform. As employers digest the proposals, we now take a deeper look at the direction of travel, to help you better plan workforce needs and provide reassurance to your migrant workers or students. This article elaborates on those initial insights, providing clarity on what’s proposed and what it could mean for your business.

  1. Tightening Eligibility to RQF Level 6+ and the Introduction of the Temporary Shortage List (TSL)


    • What does RQF Level 6+ mean?
      It’s not a requirement for candidates to hold a degree—rather, the job must be classified at degree-level skill under the Standard Occupation Code (SOC). A list of eligible occupations should this take place can be found here.
     
    • Impact:
      171 occupations will no longer qualify for Skilled Worker sponsorship unless included in the TSL. 
     
    • Transitional Provisions:
      Current Skilled Workers in sub-RQF 6 roles will be protected. They can extend, switch employment, and take supplementary work under existing rules. However, new applicants must meet the new threshold once implemented.
     
    • About the TSL:
      The TSL will enable certain RQF Level 3–5 occupations to remain eligible if they are critical to the economy or national priorities (e.g. infrastructure, key sectors). The Migration Advisory Committee (MAC), with input from a new Labour Market Evidence Group, will determine eligible roles.

      Employers are strongly encouraged to participate in consultations, particularly where changes will impact sector sustainability. Representations should include strategies for upskilling and recruiting locally.

    • Timelines:
      These reforms are unlikely to take effect before October/November 2025. Businesses should:
      • Review the skill levels of both current and future employees
      • Consider submitting sponsorship applications sooner, particularly for roles likely to be excluded under new rules
      • Be aware that salary discounts for shortage roles may also be removed
      • Monitor for further details about the "temporary" nature of TSL roles and whether they will allow a route to settlement


  2. Dependents and the TSL

    • Policy Change:
      Skilled Workers in TSL roles will no longer be allowed to bring dependents. However, this will not apply retrospectively.
     
    • Reassurance for Existing Employees:
      Those already on a Skilled Worker visa should be allowed to continue to sponsor dependents. This is consistent with the 2024 care worker changes, where transitional protections applied.


  3. Increase to the Immigration Skills Charge (ISC)

    • What’s Expected?
      This change is likely to be implemented quickly and may come into effect within weeks after a statutory order is laid in Parliament.
     
    • Action for Employers:
      Plan ahead. Assign Certificates of Sponsorship (CoS) now if possible, before costs increase.


  4. Graduate Route Reduction to 18 Months

    • Likely but Not Imminent:
      The change is expected but likely won't affect this year's graduates. 
     
    • Employer Considerations:
      • Sponsoring international graduates under the Skilled Worker route exempts employers from paying the ISC for four years and allows use of the lower new entrant salary thresholds.
      • Employers should consider transitioning current graduate visa holders to Skilled Worker visas to avoid the ISC increase and reduce long-term costs if a 10-year route to settlement becomes law (see 6 below).


  5. Higher English Language Requirements and Introduction for Dependents

    • Who Will It Affect?:
      Likely to apply at the point of settlement for existing skilled workers and their dependents, and at visa application for new dependent arrivals once introduced.
     
    • Employer Considerations:
      • Existing Skilled Workers may wish to sponsor dependents now to avoid future language test requirements.
      • TSL job holders won't be able to sponsor dependents, further limiting talent appeal.
      • These changes could deter international applicants and should be considered in workforce planning.
     
  6. Extension of the Qualifying Period for Settlement from 5 to 10 Years 

    • Uncertainty Around Implementation:
      The Home Secretary's proposal has caused widespread concern. While not yet law, businesses should prepare for the possibility.
     
    • Legal Precedent:
      In a 2009 High Court ruling regarding the Highly Skilled Migrant Programme, it was judged that retrospective changes to settlement eligibility were unlawful. Those already on a path to settlement should not be affected.
     
    • Planning Implications:
      • Employers must consider the cost of supporting workers for 10 years instead of 5.
      • The UK's potential move to a 10-year path to citizenship would be the longest in the developed world, impacting international competitiveness.
      • Those already on a visa path to settlement have a legitimate expectation that they will continue to settlement under current rules.


 


 

Conclusion and Recommendations for Employers

The UK’s immigration reforms mark a significant shift in policy that could reshape employer strategies across sectors. Here are our key recommendations:

  • Engage in Consultation:
    Contribute to MAC calls for evidence. We can assist you with drafting or reviewing submissions.

  • Act Now:
    • Prioritise Skilled Worker applications for current RQF 3–5 roles
    • Submit new applications ahead of expected changes to salary thresholds and ISC fees
    • Sponsor dependents and consider early settlement applications under current rules
    • Communicate and keep colleagues updated 

  • Begin Formulating Your Response:
    If your organisation is likely to be affected, consider addressing the following:
    • Already high visa costs are becoming prohibitive—bring UK fees in line with global competitors
    • 10-year settlement rule doubles long-term costs—introduce measures to ease this burden
    • Graduate visa changes risk undermining retention of UK-educated talent
    • Uniform salary thresholds ignore regional disparities—rethink the 50th percentile approach
    • A better balance is needed between investment in domestic skills and a visa system that remains flexible, cost-effective and actually achievable 

We will continue to keep you updated as more information is released. In the meantime, if you have any questions or require advice on planning your recruitment strategy, don’t hesitate to get in touch.

 

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🛑 The law applicable in this article is correct as of 16 May 2025. Immigration rules frequently change, and the information here may not reflect the latest legal position. For advice tailored to your specific circumstances, please contact us to arrange a consultation with our legal team.

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