Business Immigration White Paper May 2025
The UK Government issued their business immigration white paper 2025 on Monday 12 May titled ‘Restoring Control over the Immigration System’. This is a public document published by the government which sets out their policy intentions and plans for future changes to the current immigration rules and regimes in the UK, with a view to reducing net migration. These changes have not yet come into effect. Not all changes are required to be placed before Parliament, and we await further announcements from the government as to when we can expect these changes to take effect
Headline Changes from the Business Immigration White Paper 2025:
- The skills threshold for skilled workers will be increased from RQF3 back to RQF6.
- The social care visa route is to be closed.
- The immigration skills charge is to increase by 32%.
- The standard period for settlement in points based system routes is to be doubled to ten years.
- Graduate visas will be reduced to 18 months.
- A new “temporary shortage” occupation list will be used for roles below RGF6.
- English language requirements levels are to be raised to B2 as well as extended to all adult dependants of workers and students at level A1 (Basic User).
- Enhancements to Highly Skilled Routes
Skilled Worker Reform
It is the Government’s intention to increase the minimum skill threshold for sponsored workers to RQF Level 6, which is equivalent to degree level. This change brings the skill level back in line with the pre-2020 skill threshold. Roles at RQF Level 6 and above will still be eligible but could face future restrictions if over-reliance is identified by the Migration Advisory Committee (MAC).
Salary thresholds will be increased again, following the significant increases to salary thresholds effective from 04 April 2024. We do not yet have the figures on this increase.
The Immigration Salary List will be abolished and a new Temporary Shortage List will be put in place for roles below RQF Level 6. Access to these roles will require a workforce strategy and MAC review. The workforce strategy will operate in key sectors where there are high levels of recruitment from abroad.
Sectors such as care, hospitality and construction that have been heavily reliant on roles below degree level will face challenges in accessing international candidates.
These changes are expected to take effect from 2026 following a period of consultation and formal review by the MAC.
Overseas Recruitment for Social Care Roles to be closed
From 2028, the Health and Care Worker visa will no longer be available for frontline social care workers. This means that employers in the care sector will no longer be able to recruit new care workers from abroad.
Care workers already sponsored and in the UK under this visa may continue working and can apply to extend their stay or switch to another visa. Transitional arrangements will remain in place until 2028. These time scales are proposed to allow the Government to produce a long-term workforce strategy.
Employers in the care sector have already faced restrictions on who they can recruit, with the introduction of the displaced worker scheme.
Immigration Skills Charge (ISC) Increase
Based on the information in the Business Immigration White Paper 2025 the Immigration Skills Charge will be increased for the first time since it was introduced significantly increasing the costs for employers. The new rates reflect inflation and will apply as follows:
- For small or charitable sponsors: £480 for the first 12 months and £240 for each additional 6-month period
- For medium or large sponsors: £1,320 for the first 12 months and £660 for each additional 6-month period.
The Government has not confirmed when the new rates will take effect.
Changes to Settlement
The minimum residency period required to apply for settlement will be extended from five years to ten years. A points-based model assessing ‘contribution’ for early settlement will be introduced. Points will be awarded for factors such as tax contributions, employment in public services or participation in community life.
For employers with sponsored staff hoping to remain in the UK permanently, these changes will affect recruitment budgets and workforce planning.
Details on the new settlement criteria are expected to be announced at the end of the year.
Changes to the Graduate Route
The Graduate visa, which allows international graduates to remain in the UK and work without sponsorship, will be reduced from two years to 18 months.
The policy is expected to come into effect in late 2025 or early 2026.
Temporary Shortage Occupations
The Immigration Salary List will be abolished and a new Temporary Shortage List introduced to provide time limited access to the Points-Based immigration system. Occupations below RQF 6 must be listed on the Temporary Shortage List in order to gain access to the immigration system.
Access to this system will be limited to occupations where there have been long term shortages, on a time limited basis, where the MAC has advised it is justified, where there is a workforce strategy in place, and where employers seeking to recruit from abroad are committed to playing their part in increasing recruitment from the domestic workforce.
This new system will take time to establish and for a transitional period, the Temporary Shortage List will contact occupations that the MAC consider to be in shortage.
English language
English language are expected to be strengthened across the points based system with skilled workers required to demonstrate English language skills at level B2, rather than B1 and dependents in points based routes also required to demonstrate a basic level of English before being granted entry clearance at level A1.
Highly Skilled Routes
The Government plans to improve and simplify visa routes aimed at attracting highly skilled and talented individuals with strong academic, research or business credentials.
The Global Talent and Innovator Founder routes will be reviewed and the endorsement process simplified.
More places are expected to be made available for international research interns and new measures introduced to attract professionals in design and scientific fields.
The High Potential Individual route for international graduates is also set to be expanded, with the aim of doubling the number of qualifying universities.
Details on these changes are expected at the end of 2025.
The full publication can be viewed here. No changes to the current immigration rules have taken effect following the government’s policy announcement on Monday 12 May.
We wait further announcements from the government as to exactly what the changes will be and when they will take effect following consultation and review by MAC.
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