As the UK transitions under the newly elected Labour government, business immigration remains a critical area for companies to monitor closely. As the new government takes shape, businesses must ensure they remain informed about potential changes in immigration policies that could impact workforce planning and international recruitment strategies.
Skills Shortages & Concerns About Immigration
The new cabinet is eager to address several key issues that resonate with the British public, and recent developments have underscored that immigration remains a central focus in both political and public discourse. Furthermore, the new Labour government is poised to introduce reforms aimed at addressing skills shortages while seeking to balance these efforts against the mentioned public concerns about immigration.
What to Expect in Late 2024 & Early 2025
While major overhauls to business immigration are not immediately expected, significant updates are likely to be introduced towards the end of 2024 and into Spring 2025. Key indicators suggest that the Labour government will maintain the points-based immigration system but implement targeted adjustments to address the UK’s ongoing skills shortages.
Factors Influencing Business Immigration
The previous government’s changes to immigration rules have already led to a significant reduction in net migration, primarily due to restrictions on dependant visas for carers, senior carers, and international students, as well as increased minimum salary thresholds for Skilled Worker Visas and financial requirements for Family and Spouse Visas.
Family Visa Restrictions
Care workers and senior carers on the Health and Care Worker Visa can no longer bring family members under Dependant Visas.
International Student Rules
Only international students pursuing a PhD or certain postgraduate qualifications can bring dependants with them.
Skilled Worker Visa Thresholds
As of 2024, the minimum salary threshold for the Skilled Worker Visa has been raised to £38,700 or the job’s going rate, whichever is higher.
Family Visa Financial Requirements
The financial requirement for Family and Spouse Visas has increased from £18,600 to £29,000. However, the proposed further increase to £38,700 has been temporarily suspended pending the outcome of an additional report from the Migration Advisory Committee.
Skills Shortage
Meanwhile, the UK continues to face a longstanding skills shortage that cannot be resolved overnight. Educating the next generation and equipping them with the necessary skills to fill job vacancies traditionally held by overseas workers requires time and effort.
Key Considerations for Business Immigration
Indications suggest that Labour intends to maintain the points-based immigration system but with adjustments to legal migration policies and immigration processes. The Home Secretary’s statement to Parliament on 30th July 2024, offered valuable insights into the government’s intended direction, providing a glimpse of what Business Immigration Solicitors and business owners can expect in the future.
As the Labour government shapes its immigration policy, several potential developments were referred to in this statement.
Strengthening the Migration Advisory Committee (MAC)
The MAC’s role will likely expand, with its recommendations carrying more weight. This could lead to more stringent requirements for businesses relying on international talent, especially in sectors like IT and engineering.
Creation of Skills England
A new entity, Skills England, will collaborate with the MAC to reduce reliance on overseas workers, encouraging the employment of British talent and those with settled status in the UK. This initiative will focus on filling roles that have remained on the established shortage occupation list for years.
Increased Sponsor Licence Compliance Audits
The Home Office is expected to intensify its audits, particularly in high-risk sectors. Compliance with sponsorship licence requirements will be scrutinised more closely, making it crucial for businesses to ensure they meet all legal obligations.
Workforce and Training Initiatives
Collaboration between education and immigration authorities is likely, with new training programmes designed to equip UK workers with the necessary skills for key industries like healthcare and construction.
Potential Policy Shifts
While predicting exact changes is challenging, some potential developments include:
Resident Labour Market Test
A reintroduction or modified version of this test may require employers to demonstrate efforts to hire domestically before seeking overseas workers. Though previously viewed as cumbersome, it may gain political traction as part of Labour’s broader immigration strategy.
Immigration Skills Charge
An increase in this charge could be on the horizon, both as a revenue generator and as a deterrent to hiring internationally without considering domestic options first.
Actionable Steps for UK Businesses
Given these potential changes, UK businesses may take a number of proactive steps to prepare:
Enhance Sponsor Licence Compliance
Anticipate increased scrutiny by committing to regular immigration law training for HR teams, utilising sponsor licence management services and conducting annual mock audits.
Strategic Recruitment Planning
Consider recruiting for roles likely to be impacted by policy changes sooner rather than later. Supporting Health and Care Worker Visa holders with additional benefits or technology solutions can also help retain valuable staff.
Prepare for Right-to-Work Changes
With the introduction of e-visas set to replace Biometric Residence Permits in January 2025, businesses should support overseas workers in transitioning to the new system to ensure compliance.
Summary
The UK’s new immigration policy remains focused on reducing the UK’s high net migration levels. To decrease reliance on overseas workers by upskilling the British workforce. Furthermore, the strategy prioritises several critical sectors such as construction, IT, healthcare and engineering. However, the challenge for this policy is the potential time gap between implementing new measures and developing the necessary skills domestically to resolve the skills shortage.
We Can Help
At Axis Solicitors, our team is ready to help your business navigate these evolving immigration challenges. We provide tailored advice and support to help you stay ahead of regulatory changes and maintain a compliant, skilled workforce.
