Immigration reform: the key points from the government’s white paper

On 12 May 2025, the UK government released its white paper setting out proposals to reform the UK's immigration system with the goal of trying to reduce net migration. It is unclear when the proposals will be implemented, although the government indicated that some of the changes will come into force "in the coming weeks". In this article, we explore the key proposals that are likely to have the biggest impact on UK employers and sponsors.

Settlement – doubling the qualifying period

Proposal: Doubling the qualifying period for settlement in the UK for individuals under the Points Based System - taking it from 5 to 10 years.

Impact: As a result of this proposal, UK sponsors will likely incur years of additional sponsorship costs in order to continue employing an overseas national under the Skilled Worker route. Given the rising cost of employing individuals generally, this may not be viable for some sponsors and may lead to difficult decisions regarding recruitment and retention of talented individuals.

The government has not been clear whether this proposal will apply to new skilled workers after a set date or retrospectively – which is causing vast uncertainty amongst this existing group in the UK. However, the government has indicated that individuals will have the opportunity to reduce the qualifying period based on "Points-Based contributions to the UK economy and society" – although the white paper does not detail what these contributions would be. Consultation is expected on this later in the year.

Skilled Worker visa – increase to skill level and salary thresholds

Proposal: Increasing the skill level back to RQF 6 (degree-level or above) – reversing the change made by the Conservative government in 2020. The increased skill level would apply to new applicants only, i.e., those who are not currently in the UK on a Skilled Worker visa when the change is implemented. Individuals who are currently in the UK on a Skilled Worker visa will be able to extend their visa, change employers and take up supplementary employment based on their current eligible occupation, even if it is below RQF 6.

The white paper also confirms that salary thresholds will rise. The government's aim of this proposal is to ensure that international recruitment is not a cheap alternative to fair pay.

Impact: The government anticipates that increasing the skill level to RQF 6 will reduce the number of eligible occupations by roughly 180. This could have a significant impact on employers who require skilled workers who may not meet the RQF 6 requirement, but who have on the job experience, for example, employers in the manufacturing industry.

The proposed increase to salary thresholds may also impact UK sponsor's ability to sponsor overseas nationals under the Skilled Worker route – if they cannot afford to pay the minimum salary, then the occupation will not be eligible.

End of social care visas

Proposal: Ending adult social care through the Health and Care visa. Whilst the government has indicated that there will be a transition period until 2028, during which time in-country switches and visa extensions will be permitted for those already in the UK, this is to be kept under review. The government has indicated that this proposal is due to concerns over exploitation of workers which has been widely reported.

Impact: This is likely to have a significant impact on employers in the care sector who rely heavily on overseas recruitment to fill vacancies and employers in this sector should start considering their recruitment strategies as soon as possible.

Temporary Shortages

Proposal: Removing the Immigration Salary List which lowers the salary threshold for certain occupations under the Skilled Worker route. The government proposes to instead introduce a Temporary Shortage List for occupations with a skill requirement of RQF 3-5 where there are long-term sector shortages and certain conditions are met, including that the Migration Advisory Committee (MAC) has advised that it is justified. 

Impact: Based on the current proposals, the criteria for roles being added to the Temporary Shortage List are likely to be stringent.

Other key changes

• Increasing the Immigration Skills Charge by 32% - this is expected to apply in the 2025/26 financial year;

• Reducing the maximum period of a Graduate visa from 24 to 18 months – meaning that employers will have to offer sponsorship to graduates sooner, or otherwise may not be able to continue to employ these individuals;

• Launch of workforce strategies for certain sectors where there are high levels of recruitment from abroad – relevant employers will be expected to comply with the guidelines and be scrutinised closely.

• Creation of a new Labour Market Evidence Group to review skills shortages and collaborate with sector stakeholders on recruitment challenges in the UK;

• Expanding the High Potential Individual route by doubling the number of qualifying institutions; and

• Increasing the English language requirements for Skilled Workers from B1 to B2 of the Common European Framework for Reference for Languages (CEFR) and introducing an English language requirement for adult dependents. The initial level required will be level A1 of the CEFR, level A2 for any extension and level B2 for settlement. As such, the dependents level of English will need to increase over the time that they spend in the UK.

Conclusion

Employers have had to adapt to many changes relating to recruitment of overseas nationals over the past few years and there does not appear to be any respite anytime soon. Overall, the proposals in the white paper are likely to make sponsorship of Skilled Workers more costly and reduce the number of roles where sponsorship can be offered. Employers are likely to face difficult budget decisions regarding recruitment and retention of talent moving into 2026, at the same time as they are expected to help grow and develop the UK economy.

We will be monitoring these developments and the timings closely. If you have any questions or would like to discuss the impact on your business, please do get in touch.