UK Immigration Reform 2025: Key Changes and Business Impacts - Watson Farley & Williams

One of the most significant changes is the proposal to raise the minimum skill level for the Skilled Worker route from RQF Level 3 (A-level equivalent) to RQF Level 6 (graduate level). This move is intended to prioritise high-skilled roles and reduce reliance on lower-skilled migration. According to the white paper, “this approach would see the number of eligible occupations reduced by around 180 occupations”.

Individuals who are currently sponsored under the Skilled Worker route in a role which falls within the RQF Level 3 to 5 bracket will be permitted to extend their visas in their current occupations and change their sponsoring employer. However, applicants from overseas or those applying under the Skilled Worker route for the first time will be subject to the higher threshold.

A ‘Temporary Shortage List’ will be introduced for roles falling within the RQF Level 3 to 5 bracket. This may permit temporary sponsorship under the Skilled Worker route 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.” How this system will function is yet to be clarified, but the indication is that sponsorship for these types of roles will be temporary, subject to caps on visa numbers and migrants sponsored under these roles will not be permitted to bring dependants to the UK.

The Adult Social Care visa will be closed to new applicants from overseas.

this change is designed to encourage investment in automation and upskilling of the domestic workforce; and

sectors such as hospitality, logistics and social care, which have been traditionally reliant on mid-skilled migrant labour in recent years, may face acute shortages, increasing operational costs and recruitment challenges.

Abolishing the Immigration Salary List and Raising Salary Thresholds: A More Uniform Approach but Cost Pressures to Increase

In a further effort to tighten the Skilled Worker route, the government has announced that the Immigration Salary List (“ISL”) will be abolished. This list previously allowed certain roles to benefit from reduced salary thresholds and visa fees. Its removal signals a move toward a more uniform salary requirement across all occupations.

Additionally, salary thresholds for the Skilled Worker route are set to rise across the board. Whilst the government has confirmed the intention to increase these thresholds, specific figures and implementation timelines have not yet been published.

The Immigration Skills Charge will also increase by 32%. For a medium or large sponsor, this will increase the total visa cost of £320 per year of sponsorship, making UK visas even more expensive.

cost pressure: employers may face higher wage bills to meet new minimum salary requirements, as well as higher visa costs;

planning difficulty: the lack of clarity around implementation makes it challenging for businesses to plan recruitment and budget forecasts; and

sectoral disruption: industries that have previously relied on ISL concession, such as construction and life sciences, may be disproportionately affected.

Expanding Global Talent and High Potential Individual (“HPI”) Routes: “Attracting the Best and Brightest”

The white paper proposes expanding the Global Talent and High Potential Individual routes by streamlining endorsement processes for applicants in the science, technology and creative sectors, and to try and increase the number of qualifying institutions which can endorse applicants under the HPI route.

many in-demand industries, such as tech firms and creative industries, should benefit from easier access to global talent. In turn, they may be able to decrease their reliance on the Skilled Worker route for individuals requiring visas to work in the UK, which would reduce overhead costs; and

more clarification is required on precisely how these routes will be expanded, as, under the current rules, employers and entrepreneurs frequently encounter logistical or legislative barriers when trying to apply under these visa categories.

Reforming the Path to Settlement: Longer Waits, Stricter Criteria

One of the most significant and potentially contentious proposals in the white paper is the overhaul of the settlement process, also known as Indefinite Leave to Remain (“ILR”). The government intends to increase the qualifying period for settlement from five years to ten years for most visa categories. This change reflects a broader policy objective to ensure that only migrants who demonstrate sustained economic contribution and integration are granted permanent residence. The white paper does not yet clarify whether this change will apply retrospectively to individuals already in the UK on time-limited visas. This ambiguity has raised immediate concerns among migrants and employers alike, particularly for those who have planned their sponsorship based on the five-year pathway. The white paper mentions that visa holders will “have the opportunity to reduce the qualifying period based on Points-Based contributions to the UK economy and society”. This is a novel approach and the precise methodology and framework for how these contributions will be assessed is unclear at this stage. This should be the subject of consultation later this year.

cost: the cost of visa sponsorship will increase drastically with the doubling of the qualifying period for settlement. This will create a substantial burden on employers who wish to sponsor visa holders until they are eligible to settle in the UK;

retention challenge: longer settlement timelines may discourage long-term commitment from skilled migrants and they may choose to relocate to different countries as a result; and

administrative burden: employers may need to support more visa renewals and compliance checks over extended periods.

Tougher English Language Requirements: Raising the Bar for Integration and Expanding to Dependants

The white paper proposes raising the English language requirement across most visa categories to CEFR Level B2 (upper-intermediate). In addition, English language requirements will be introduced for dependant partners for the first time.