UK immigration update: December 2023

1. The minimum salary needed for Skilled Workers will hike from £26,200 to £38,700, nearly 50% from its current figure. The government will also end the 20% going rate salary discount for shortage occupations and replace the current shortage occupation list with a new Immigration salary list, that according to the Home Secretary, it will retain a general threshold discount.
2. Social Care Workers will no longer be allowed to bring their dependants when they came to work in the UK. In line with the government statement, they have noticed a high number of visas being granted to dependants of care workers professionals, where the majority whom they estimate do not work, but still make use of public services. The government also suggested that those coming on the Health and Care visa route will be exempted from the increase to the salary threshold for Skilled Worker visas.
3. The minimum income for family visas has also risen from the current £18,600 to £38,700. This is the first increase to the income requirement since 2012.  This route is designed for British Citizens and those settled in the UK who want to bring their family members to join them.
4. Part of the plans also involves the government’s request to the Migration Advisory Committee (MAC) to review the Graduate route to ensure it works in the best interests of the UK and that steps are taken to ‘’prevent abuse’’.  Any major changes to this route could have a substantial impact on companies which have graduate programmes in place.
5. Along with the above measures, the government confirmed that from next year migrants coming to the UK under the student visa will no longer be able to bring dependants with them. The government believe this will lead to 300,000 fewer entrants into the UK. 

What does this mean for companies?

Raising the minimum salary requirement for Skilled Workers will impact those businesses who are currently sponsoring individuals at the lower range of eligible occupations.  It is likely that some of the more junior roles, below manager level, will no longer meet the increased salary requirements. 

It is also likely to impact those who recruit foreign nationals into their Graduate level positions, although it is not clear now how the “new entrant” requirements (where salary levels are discounted) will be impacted. 

Changes to the Shortage Occupation list, with the removal of the 20% salary discount, are also likely to impact those industries recruiting for positions such as Chefs, Artists, Dancers and those in construction-based roles.

Amending the current Graduate route will impact on students looking for entry into the UK labour market and will have an impact on those who recruit for Graduate Level positions.  It is not yet clear whether the government will just amend this route or look to remove it entirely, although that certainly seems possible at present.

What do you need to think about now?

Any pipeline for applicants entering Graduate schemes or that you are planning to recruit in lower-level positions will need to be reviewed as soon as possible.  It may be necessary to accelerate the submission of applications before the proposed changes in the Spring of 2024 take effect.

Companies will also need to review their current workforce planning, looking at what roles and salary levels they offer to be prepared for the higher minimum qualifying salary requirements and changes/contraction of the Shortage Occupation List.

Changes are expected from Spring 2024.

Get in touch

We understand that some of these are major upcoming changes that could be a cause of concern, so if you require further information or would like to discuss the content in more detail, please contact, your Mazars contact or Sue Kukadia, Tax Partner and Head of Immigration.