Government immigration rule changes: what does this mean for businesses?

Posted: 20/03/2024

Following the government’s announcement of the five-point legal migration plan and its aim to reduce net migration, the Home Office has published the statement of changes to the Immigration Rules, bringing sweeping changes to the sponsored worker routes. These will come into effect from 4 April 2024. Those seeking to rely on the current rules will need to have assigned the Certificate of Sponsorship by 7pm on 2 April 2024, as the system will be unavailable until 9am, 4 April 2024.

The changes may impact existing employees who need to extend or switch into the Skilled Worker route or apply for settlement. They may also impact new hires who need to be sponsored. Below is an analysis of the changes and the forward planning that businesses should consider now.

Key points

• The general salary threshold for Skilled Workers will increase from £26,200 to £38,700, with the absolute minimum salary for those eligible for a discount being £30,960. Those subject to national pay scales (health/education see table 3 for the full list) are exempt – see the full comparison tables below, including the changes to other routes.
• The minimum salaries for some of the roles (going rates) are increasing significantly. By way of example, the minimum salary for business development managers will increase from £35,100 to £52,500 to those applying for the first time under the Skilled Worker route, and to £39,100 for those extending or switching employment.
• The Shortage Occupation List (SOL) is being replaced by the ‘Immigration Salary List’, with a significant reduction of eligible job roles. All engineering and tech roles have been removed, for example. However, for those already sponsored in roles that are being removed, a lower salary threshold will continue to apply (albeit higher than the current rate), provided they remain with the same sponsor and in the same role – see examples by sector below.
• The list of eligible roles for sponsorship under the Skilled Worker route is being expanded, where some roles will be split into additional codes and others removed. See table 2a for full list of codes that will no longer be eligible for sponsorship. However, the role may fit into another eligible code therefore the job description will need to be reviewed carefully.
• The Standard Occupational Classification code system is being updated from 2010 to 2020, and this may impact the numbering for some roles; for example, SOC code 2136 for programmers and software development professionals will become SOC code 2134.
• For those sponsored under the Skilled Worker route on or after 4 April 2024, the restriction on only being able to undertake supplementary employment within the same SOC code under which they are sponsored will be removed.

Other announcements which may impact a workforce

• Family route – the minimum income requirement for partners of British/settled individuals will be increasing from £18,600 to £29,000. This will impact those applying for the first time on or after 11 April 2024. For those applying with non-British children, there is no additional financial requirement.
• Under the Temporary Worker – Government Authorised Exchange route, a new Future Technology Research and Innovation scheme will be added from 4 April 2024; the scheme will be administered by UKRI. Those undertaking research and training can stay for a maximum of two years, and for those undertaking work experience the maximum stay will be 12 months.  
• The Migration Advisory Committee will be undertaking a major review of the Immigration Salary List later in 2024.
• The Migration Advisory Committee has also been commissioned to undertake a rapid review of the Graduate route, and report back by 14 May 2024. Click here for further details.

Minimum salary thresholds comparison tables

1. New Skilled Worker applicants

See table 1 for the minimum salary levels (going rates) for specific roles.

2. Existing Skilled Worker applicants

 * Temporary concessions for those working towards NMC qualifications remain (for up to eight months).

 See table 2 for minimum salary levels for specific roles.

3. Other routes – new applicants

Examples by sector 

NB: The below assumes the individual will be working a 37.5-hour week, and none of the other tradeable points apply (unless indicated).

Tech

Software engineers are being removed from the Shortage Occupation List and not being added to the Immigration Salary List. Currently, software engineers (SOC code 2136, moving to 2134) need to be paid a minimum salary of £27,200 (80% of the going rate). From 4 April 2024, Skilled Workers:

• extending their visa with their current sponsor will need to be paid at least £29,040 pa;
• switching sponsors will need to be paid at least £36,300 pa;
• applying for the first time will need to be paid at least £49,400 pa.

Life sciences 

Biological scientists (SOC code 2112) will be on the new Immigration Salary List (and are currently on the Shortage Occupation List). As it stands, biological scientists need to be paid a minimum of £24,480 (80% of the going rate). From 4 April 2024, Skilled Workers:

• extending with their current sponsor or switching to a different sponsor will need to be paid at least £25,680 pa;
• applying for the first time will need to be paid at least £33,520 pa.   

Education 

Lecturers (SOC code 2311) under the Skilled Worker route currently need to be paid at least £41,200 pa. From 4 April 2024, Skilled Workers:

• extending with their current sponsor or switching to a different sponsor will need to be paid at least £38,100 pa;
• applying for the first time will need to be paid at least £47,700 pa.

Retail 

Product, clothing and related designers (SOC code 3422) under the Skilled Worker route currently need to be paid at least £26,800 pa. From 4 April 2024, Skilled Workers:

• extending with their current sponsor or switching to a different sponsor in that SOC code will need to be paid at least £29,000 (as the minimum rate for the route is higher than the going rate, which is £27,700 pa);
• applying for the first time will need to be paid at least £40,500 pa.

What steps to take now

It is recommended that businesses review their current workforce to determine who may be impacted by the changes above; this may include:

• new hires and existing workers who need to switch to the Skilled Worker route, and whose salary falls below the new minimums; and
• existing Skilled Workers who need to extend or are eligible for indefinite leave to remain, and whose salary falls below the minimums under the transitional provisions.

For further information on how these changes may impact your business from an immigration perspective which may also have employment implications, please contact us.

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