Employment, contingent workforce and immigration | UK Regulatory Outlook May 2025

Reforming the immigration system: Immigration White Paper May 2025 

In a significant move intended to "restore order, control and fairness" to the UK's immigration system, the government has announced a series of reforms in its Immigration White Paper May 2025. It is important to note that these are NOT yet in force and have to follow the required process before they become law. These intended changes are designed to address "the over-reliance on overseas workers to fill gaps in labour", ensure fair practices, and boost domestic talent and skills. Some key points for employers from the white paper: 

Raising skill thresholds 

One of the most impactful changes is the decision to lift the skill threshold for skilled workers back to RQF 6, which corresponds to degree-level qualifications. This move aims to ensure that only highly-skilled individuals are eligible for work visas. Additionally, salary thresholds will be increased to reflect the higher skill level required. It is also anticipated that the minimum salary threshold for skilled workers will also increase. 

Immigration Skills Charge 

The Immigration Skills Charge (ISC), which has not been reviewed since its introduction in 2017, will be increased by 32% to align with inflation. The funds generated from this charge will be used to support skills funding for priority sectors, helping to upskill the domestic workforce and reduce reliance on migration. It is anticipated that this change will come into force quicker than the other changes. With the ever-increasing costs of sponsoring overseas workers, employers should keep this increase in mind for new applications. 

Closing the social care visa route 

In response to concerns about exploitation and abuse, the social care visa route will be closed to new applications from abroad. A transition period until 2028 will allow for visa extensions and in-country switching for those already in the UK with working rights, but this will be kept under review. 

Labour Market Evidence Group 

To make informed decisions about the state of the workforce and the role of different policies, a Labour Market Evidence Group will be established. This group will gather and share evidence about workforce conditions, training levels and domestic labour market participation. 

Workforce strategies 

Key sectors, of which social care was named, with high levels of overseas recruitment will be required to produce or update workforce strategies. Employers will need to comply with these strategies, detailing steps to improve skills, training and engagement of the economically inactive domestic labour force. 

Temporary Shortage List 

A new Temporary Shortage List will be created to provide time-limited access to the Points-Based immigration system for occupations below RQF 6. Access will be limited to occupations with long-term shortages, justified by the Migration Advisory Committee and supported by a workforce strategy. 

Employer incentives 

Employers using the immigration system will be incentivised to invest in boosting domestic talent. Options to restrict employers from sponsoring skilled visas if they are not committed to increasing skills training will be explored. 

Refugee employment 

Reforms will allow a limited pool of UNHCR-recognised refugees and displaced people to apply for employment through existing skilled worker routes, provided they have the necessary skills and meet the requirements. 

Global talent 

Efforts will be made to ensure highly-skilled individuals have opportunities to come to the UK through targeted routes for global talent. This includes increasing places for research interns and streamlining processes for top scientific and design talent. 

English language requirements 

To foster better integration and community cohesion, language requirements for skilled workers will be increased from B1 to B2 (Independent User) levels, in accordance with the Common European Framework for Reference for Languages (CEFR). Additionally, new English language requirements will be introduced for adult dependants of workers and students. 

Indefinite leave to remain  

The path to settlement in the UK will be made longer, increasing from five years to 10 years for individuals in the UK on Points-Based System routes. There is a suggestion that individuals who contribute to the UK economy and society will be able to reduce the qualifying period, but no information on what exactly will be taken into consideration for the reduction.