Key Figures & Bodies Involved

• Yvette Cooper, Home Secretary: driving reforms.

• Professor Brian Bell, Chair of the Migration Advisory Committee (MAC): revealed details in an interview.

• Labour Market Evidence Group (LMEG): advising on reducing reliance on foreign labour and promoting UK training.

Key Policy Proposals

1. A Cap on Skilled Worker Migration

• Labour is considering an annual or monthly cap on overseas recruitment for shortage occupations.

• The aim is to reduce net migration by 60,000 per year.

• Employers who fail to train UK workers could be barred from overseas recruitment.

2. Graduate-Level Thresholds

• Migrants will only be eligible for graduate-level jobs or above for skilled worker sponsorship.

• This raises the bar from Boris Johnson’s “A-level threshold.”

• Around 120 non-graduate occupations (including retail workers, chefs) will be barred from recruiting overseas staff by the end of next year.

3. Temporary Shortage List (TSL)

• Up to 60 non-graduate roles deemed crucial to the UK’s industrial strategy (e.g., welders, electricians, plumbers, mechanics, shipbuilders, decorators, data analysts) may remain eligible for sponsorship under the TSL,  subject to credible UK training plans.

• ''Carrot and Stick'' approach: Sectors with deliverable training plans may continue limited overseas recruitment and see the occupations that they rely on be included in the TSL. Failure to deliver on training plans = loss of overseas recruitment rights.

Professor Bell warned: “Where we will be really unsympathetic is if a sector has said ‘we are going to train 1000 bricklayers’ and then they train 100, then we are going to say, ‘well tough, you’re on your own now”

Safeguards and Incentives

• Salary thresholds  to be set for shortage occupations to prevent undercutting with cheaper foreign labour. 

• In some cases, thresholds may be set above market rates to further incentivise training investment in domestic workforce, with the rationale that if employers are saying they really need oversee workers, then employers can pay more for them. 

• Employers in barred sectors (120 occupations e.g. care workers. butchers full list can be found here) will be expected to:

  • Recruit domestically.

  • Invest in training UK workers.

  • Explore automation.

Professor Bell confirmed: “There’s no access to the immigration system for those 120. They have no chance of getting on the list. The Home Secretary is not going to backtrack” 

Comparative Politics 

Labour's proposals seen as a counter to Conservative and Reform Party immigration policies.

• Reform UK (Nigel Farage):  Advocating for “Net zero” immigration policy.

• Conservatives (Kemi Badenoch): Suggesting an annual cap agreed by Parliament. 

Implementation and Next Steps

• The LMEG will conduct a 12-month review to determine which occupations can retain overseas recruitment rights.

• Assessment will be based on:

  • Alignment with Labour’s industrial strategy.

  • Existence of genuine shortages.

  • Presence of viable UK training plans.

• Skilled workers already in the UK under the old points system can renew visas, though indefinite leave to remain (ILR) eligibility after 5 or 10 years remains undecided.

What Employers Should Do Now

Employers who rely on overseas recruitment, who may be affected by Labour’s proposed migration cap should prepare now for the upcoming consultation:

1. Begin drafting your response:

   Response should show clear and realistic training plans for domestic workers. Collective sector-wide workforce training strategies response is equally important, aligning with your sector bodies — even competitors — to present a united strategy may be more persuasive than isolated efforts. However, automatically excluding 120 occupations without consultation risks being arbitrary. Employers should argue that sectors outside the government’s “industrial strategy” are still essential to a functioning UK economy.

2. Address Regional Workforce Realities:

   There are currently 1.6 million unemployed people in the UK, but unemployment is uneven across regions. UK meaning that regardless of all your intentions to train locally, there simply may not be that labour force available in your area to be trained. Employers will need to provide evidence of:

   • Past and ongoing attempts to recruit locally

   • Regional labour force demographics and workforce availability (e.g. unemployment levels in your area).

   • Why automation is not a viable alternative in your sector 

3. Highlight Concerns of Temporary Shortage Occupations:

   Relying on the Temporary Shortage List (TSL) creates uncertainty for both employers and overseas recruits. Employers should highlight:

   • The difficulty of attracting workers when their route is uncertain - it doesn’t incentivise workers to come to the UK if there are better permanent options elsewhere.

   • The risk of losing staff after investing in their training and integration

4. Consider Salary Implications:

   Having to pay a higher salary to be able to sponsor overseas workers is unworkable in practice. Employers should argue that: 

   • Increased salaries for overseas workers could trigger unsustainable wage pressures locally as will also need to increase the salary for local workers (adding to costs) 

   • Regional salary variations must be respected — national benchmarks cannot be based solely on London and the South East.

5. Engage Politically:

   Seek support from your local MP or the relevant (Shadow) Minister to raise your sector’s concerns through parliamentary channels.