Business immigration updates for employers | October 2025

Over the summer, we've had a quieter period for immigration, with proposals for change being discussed but nothing set in stone. Well, this month that has changed and most of the key updates and developments have materialised. This article includes the headline points that employers and sponsors should be aware of to plan ahead appropriately and maintain sponsorship compliance.

Increases to the Immigration Skills Charge

This increase has been on the horizon since the Immigration White Paper in May 2025. The draft Immigration Skills Charge (Amendment) Regulations 2025 were laid before Parliament on 15 October. Subject to parliamentary approval, the Regulations confirm a 32% increase to the Immigration Skills Charge, which will come into force for Certificates of Sponsorship issued on or after 16 December 2025. The new charges will be £480 per year for small or charitable sponsors (increased from £364 per year) and £1,320 per year for medium or large sponsors (increased from £1,000 per year).

The Immigration Skills Charge is payable by sponsors, subject to certain exemptions, each time the sponsor assigns a certificate of sponsorship to a Skilled Worker and GBM - Senior or Specialist Worker visa routes. The Explanatory Memorandum ("EM") to the Regulations notes that the charges have not been increased since its introduction in 2017 and that the increase is in line with inflation. The EM also states that 'money raised from the ISC is transferred to the Consolidated Fund for use in funding skills training, and to the Devolved Governments'.

We recommend that sponsors review their recruitment pipelines and budgets, considering these upcoming increases. If sponsors have skilled migrants with expiry dates in early 2026, that you wish to extend, you should consider assigning their Certificates of Sponsorship ("CoS") before 16 December 2025 to benefit from the lower charges. A CoS is valid for 3 months from the date it is assigned, so get ahead and you will save money. 

Source: SI 2025 - Immigration Skills Charge (Amendment) Regulations 2025 - Statutory Instruments - UK Parliament

Latest Statement of Changes to the Immigration Rules

On 14 October, the Home Office published its most recent Statement of Changes HC 1333 to the immigration rules, with an Explanatory Memorandum. The key changes for sponsors include:

• New English language requirements – the English language requirement for Skilled Worker, High Potential Individual and Scale-up visa applicants will increase from Level B1 on the Common European Framework of Reference for Languages (CEFR) scale to Level B2. This increased requirement will be applicable to new visa applicants made on or after 8 January 2026. This change will not be applicable to individuals that are already on these visas, such that they will continue to be subject to a Level B1 requirement where they are seeking an extension on the same route. 

• Reduction to duration of Graduate visas – the duration of Graduate visas is being reduced to 18 months instead of 2 years. This change will be applicable to individuals applying for Graduate visas made on or after 1 January 2027. However, PhD graduates will continue to be eligible to remain in the UK for three years. 

• High Potential Individual – targeted and capped expansion – from 4 November 2025, the number of eligible institutions for the High Potential Individual route will be doubled, however an annual cap of 8,000 applications per year will be introduced. This route enables recent graduates from the eligible overseas universities to be granted permission in the UK for 2 years, which includes the right to work.

Source: STATEMENT OF CHANGES IN IMMIGRATION RULES, Explanatory memorandum to the statement of changes to the Immigration Rules: HC 1333, 14 October 2025 (accessible) - GOV.UK

Increases to sponsorship priority service fees from 21 October 2025

Unexpectedly, we were notified that the Home Office has increased the fees for the priority service for expedited processing of sponsor licence applications from £500 to £750. They have additionally increased fees for the expedited processing of sponsorship management requests made by a sponsor from £200 to £350. This is quite a jump for sponsors who regularly use the priority service to obtain ad-hoc in-year undefined CoS requests. Sponsors should factor this into their 2026 budgets.

Source: Home Office immigration and nationality fees, 21 October 2025 - GOV.UK

Migration Advisory Committee (MAC) publishes stage 1 report on the Temporary Shortage List (TSL) and launches stage 2 call for evidence

The MAC has published its stage 1 report on the Temporary Shortage List (TSL). The report considers the terms and conditions which should apply to visa grants using the TSL and sets out policy design considerations and the MAC's recommendations for the TSL visa.

The report identifies the occupations that are potentially crucial to the delivery of the Industrial Strategy or critical infrastructure and provides a list of the occupations that they recommend progress to stage 2 of the MAC's review. Please see our article here (LINK) for further details on the MAC's stage 1 report.

The MAC will now commence stage 2 of their review through a call for evidence, which will run to July 2026 and will ultimately determine which occupations they will recommend for inclusion on the TSL. Submissions of evidence are restricted to occupations approved in stage one only (see Annex A of the stage 1 report). The MAC is encouraging active involvement from employers and sector organisations through their representative bodies.

We would urge employers and sponsors to contact their representative bodies to submit responses and views they wish to put forward. Submissions can be made via online forms and the closing date is Monday 2 February 2026.

Source: Temporary Shortage List: Stage 1 report (accessible) - GOV.UK

EU Entry/Exit System (EES) comes into effect

The phased implementation of the EU's EES system began on 12 October. British travellers are being told to expect checks under the new EES system. The system will be phased in over 6 months, meaning there may be varying requirements at different ports until April 2026. Travellers do not need to take any action before travelling and the process is free.

The EES requires non-EU citizens to register at the EU border they arrive at by scanning their passport and having their fingerprints and photographs taken. British passport holders are required to register on their first visit to a country where EES checks are operating. Registration is valid for a rolling 3-year period or until the passport expires. On exit, and for subsequent visits to participating countries, travellers will need to scan their passport and provide either a fingerprint or photograph at the border.

We recommend employers raise awareness of these changes, and potential border delays over the next six months, for employees who will be travelling to the EU for short business stays.

Please see our previous article here for further details.

Source: British travellers told to expect checks under EU’s Entry/Exit System - GOV.UK

New British passport design launched

From December 2025, new British passports issued will feature a new design. The new design features His Majesty King Charles III's Coat of Arms but will also incorporate the latest anti-forgery technology, to include new holographic and translucent features.

The new passports are intended to make passports easier to verify and more difficult to forge or tamper with, consistent with the Government's intention to control illegal entry by individuals without the right to be in the UK.

Source: British passports to feature His Majesty’s Coat of Arms - GOV.UK

Conservatives announce plans to leave the European Convention on Human Rights (ECHR), repeal the Human Rights Act and abolish the Immigration Tribunal and immigration legal aid to implement border control plans

The leader of the Conservative Party, Kemi Badenoch, has announced that the next conservative party manifesto will include a commitment to leave the ECHR and repeal the Human Rights Act. The announcement followed legal advice from the Shadow Attorney General, King's Counsel Lord Wolfson, analysing whether the ECHR would restrict the Government from being able to take various actions which included the deportation of foreign criminals and individuals present in the UK illegally. Lord Wolfson's legal advice concluded that the only way control of sovereign borders could be feasible would be to leave the ECHR.

Further, the Shadow Home Secretary, Chris Philp MP, announced plans to ban all asylum and other claims by migrants entering the UK illegally and implement immediate deportation to their country of origin if possible or to a third country like Rwanda if not within a week of arrival; to abolish the Immigration Tribunal entirely, with decisions instead being taken inside the Home Office;  to abolish options for judicial review, except on narrow grounds of statutory power; and to create a new Removals Force in the Home Office, doubling the budget of the current immigration enforcement team.

Source: Kemi Speaks at Conference Day 1, Controlling Immigration

Indefinite Leave to Remain proposed new eligibility criteria to be examined by the Home Affairs Committee

Currently, the qualifying period for Indefinite Leave to Remain ("ILR") is 5 years, but the government intends to increase this to 10 years. The government have produced plans to allow migrants who make a significant contribution to the UK's economy and society to qualify for a shorter route to ILR under a new 'points-based system'. The Home Affairs Committee has launched a new inquiry to examine these reform proposals, including how they may affect current immigration levels, the economy, integration and migrant households. This new proposal will significantly impact sponsors once it comes into force as they will have to sponsor skilled migrants for longer to retain them, unless they fall within the new 'points-based system'.

We would therefore recommend that employers and sponsors get involved with this call for evidence on the potential financial and economic impact this may cause. Written submissions can be provided here until 2 December 2025.

Consultation on extended right to work checks open

On 29 October, the Home Office opened a six-week consultation on the proposal to extend right to work checks to gig economy and zero-hour workers. The consultation is open until 10 December 2025 and will assist the Home Office's assessment of the impact of the proposed extension of right to work checks. We would encourage all employers to respond to this consultation. If you would like us to assist you with a response, please do get in touch with Gemma Robinson, Laura Tunks or Lauren Donnison.