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15 May 2025

Are The Labour Party Playing Politics With UK Immigration And The Economy? What's Changing In Skilled Worker Visa Policy?

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WestBridge Business Immigration

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WestBridge Business Immigration, a London-based law firm with more than a decade of experience, advises businesses, entrepreneurs, and individuals on compliant and efficient immigration outcomes. The firm specialises in tailored guidance to navigate the complexities of the UK immigration system.
Some may have seen Yvette Cooper MP, tell Laura Kuenssberg on the BBC that the immigration system would see a "fundamental shift". The Conservatives claimed that the plan wasn't going far enough.
United Kingdom Immigration

Some may have seen Yvette Cooper MP, tell Laura Kuenssberg on the BBC that the immigration system would see a "fundamental shift". The Conservatives claimed that the plan wasn't going far enough.

This morning, the UK Government published its White Paper titled "Restoring Control Over the Immigration System", outlining a comprehensive reform plan aimed at reducing net migration and restructuring the legal migration system. While these changes are policy proposals-not yet law-they offer a clear indication of the Government's intent to overhaul the Skilled Worker visa route.

Here's a breakdown of the key proposals that may shape the future of the UK's work visa landscape.

1. A Return to Higher Skills: RQF 6 and Above

Proposal:

Raise the skills threshold for Skilled Worker visas from RQF Level 3 (A-Level equivalent) back to RQF Level 6 (degree level or equivalent). Unless they are listed on a shortage occupation list which isn't published yet.

Impact if implemented:

This would significantly narrow the range of eligible roles, removing approximately 180 occupations from the visa pathway. The policy aims to prioritise high-skilled migration over entry- or intermediate-level roles.

This would cripple many businesses ability to hire from abroad, the Home Office has would allow roles such as doctors, lawyers, engineers, investment bankers etc to be sponsored, but exclude skilled roles in demand such as builders, carpenters, care workers, nursery nurses, and engineers that fix internet servers, telecoms equipment, trains etc.

You should note that current roles that are excluded from sponsorship such as train drivers and being members of parliament would likely remain excluded from the list of allowed roles.

2. Phasing Out Overseas Recruitment for Social Care

Proposal:

Close the Health and Care Worker visa route to new international applicants in social care. Current visa holders may still extend or switch routes within the UK until 2028.

Rationale:

The Government cites widespread concerns over abuse and exploitation in the sector and intends to address these through domestic workforce reform rather than overseas recruitment. Yvette Cooper mentioned that 10,000 people are currently in a pool of workers, and they should be used instead, but with widespread issues with getting any information from the Regional Partners, this is a null point.

3. Introducing a "Temporary Shortage List" (TSL)

Proposal:

Replace the current Immigration Salary List with a Temporary Shortage List. Roles below RQF 6 will only qualify for visas if:

  • The sector is part of the UK's industrial strategy
  • A clear workforce and training plan is in place
  • There's MAC (Migration Advisory Committee) endorsement
  • Visa terms are time-limited and subject to caps

Note:

There are no current proposals of who could be on this list, but the Home Secretary has mentioned that industries such as the construction industry need to do more to train people. Hence, I would take this as an indication that these roles may not be on the list. Bringing dependents for roles on this list would also be restricted.

4. Abolishing the Immigration Salary List and Salary Discounts

Proposal:

Scrap salary discounts for shortage occupations and review salary thresholds to ensure they reflect fair market rates and discourage undercutting.

Implication:

Employers would no longer benefit from reduced salary thresholds and would need to meet full prevailing wage levels. The white paper also indicates that the salary thresholds will also increase.

5. Increasing the Immigration Skills Charge (ISC)

Proposal:

Raise the ISC by 32% in line with inflation. Funds would be reinvested into UK skills development as part of a broader strategy to reduce long-term reliance on overseas workers.

Note:

You should note that Theresa May's government introduced the ISC as a way to reinvest into skills such as apprenticeships. Since being introduced, the government has not indicated where this money has been spent.

With austerity it's likely that the money will have just been used in general spending at the Home Office. I very much doubt the government will create the intended schemes to re-invest the money into skills, but no further information has been given about any investments.

This means that Small businesses and charities would pay approximately £480.48 per year to sponsor someone, or an increase of £582.40 for a 5 year visa. Medium and Large businesses would pay £1,320 per year, an increase of £1,600 for a 5 year visa.

With visa and Certificate of Sponsorship (CoS) costs having increased between £100-£286 last month, and the Immigration Health Surcharge (IHS) having increased in recent years by nearly £400 per year (or £2,000 over a 5 year visa), businesses will feel deflated by increased costs.

6. Strengthening Employer Accountability

Proposal:

Introduce a Labour Market Evidence Group (LMEG) to review whether sectors relying on overseas workers are also investing in UK training and participation.

Potential consequence:

Employers failing to demonstrate domestic investment may face tighter restrictions on future visa sponsorship. You will also need evidence that you have tried to engage with the current local workforce that is currently unemployed. Adding further bureaucracy and delays.

7. Language and Family Migration Controls

Proposal:

  • Tighten English language requirements for both primary Skilled Worker applicants and their dependants
  • Restrict dependants of visa holders in lower-skilled roles
  • Impose stricter suitability rules and financial thresholds on family migration

Note:

The Home Office will increase the English Language requirement to level B2, most people with a degree will automatically meet this requirement as degree holders are taught in English to Level C1. Currently individuals are expected to meet level B1, it might confuse people that B2 is higher than B1 but the system starts at A1, followed by A2 and continues all the way up to C2.

There seems to be an indication that the Home Office will be introducing language requirements for dependants as well. But no indication is in the white paper about this.

8. Changes to the graduate route

Proposal:

Allow graduates to stay inside the UK for up to 18 months, instead of the 2 years currently on offer.

Note:

Universities have indicated that this will make the UK less attractive as a destination to study, when our universities could benefit from an anti-Trump surge, meaning that students from around the world that want an education from a top tier university would be looking outside of the US, and the UK is very attractive as the second largest education exporter in the world.

Critics say that students will go to Australia or Canada for an education instead of coming to the UK. Unfortunately, there is no way of knowing that as the UK is likely to see foreign student numbers increase due to Trump's anti-migration approach in the US.

9. Increasing the minimum length of time inside the UK for settlement

Proposal:

The Home Office is looking to change the rules that some migrants will have to wait until they have been inside the UK for 10 years before they are eligible for settlement (called Indefinite Leave to Remain or ILR). It means that there will be a faster route for some migrants and an extended route of 10 years for other migrants.

Note:

These rules have not been finalised and the white paper only reveals that there will be an extension of the standard qualifying period to 10 years. It does not mention when migrants will be able to obtain ILR within a shorter period of time.

Why are they doing this now?

Unfortunately, I don't know exactly why. Critics will say it's an attempt to use immigration as a political football and battle Reform UK. The Labour party however, will point out that they mentioned some of these policies in their election campaign.

All I know is that some of these rules were in place prior to 2020 and some businesses flourished, but small businesses were effectively kept out of the immigration system.

Fortunately, the UK had EU free movement to allow immigration to fill sectors below RQF level 6. This time it does not.

Timeline and Next Steps

These proposals are part of a broader strategy to bring net migration down to "sustainable" levels and are expected to be rolled out over the coming months and years—some potentially requiring legislation.

The policy direction is clear, but specific implementation dates and legal instruments are still forthcoming.

What Employers and Migrants Should Do Now

  • Stay informed: These are not law yet, but preparation is prudent.
  • Review workforce strategy: Consider reducing reliance on roles below RQF 6.
  • Invest in UK-based recruitment and training to strengthen future sponsorship eligibility.
  • Monitor changes closely, especially updates from the Home Office and MAC.
  • Write to your local MP to explain how the changes will affect your business and the local economy

Final Thoughts

While these proposals signal a decisive shift in the UK's immigration philosophy, favouring skills, training, and integration over sheer numbers, they are not yet binding law. However, they represent a strong political commitment and could reshape the Skilled Worker visa system within months.

Employers and migrants alike should prepare for a more selective, skills-focused future in UK immigration.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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