In the post-Brexit, post-COVID labour market, the Skilled Worker visa is an essential tool for businesses to meet recruitment challenges with international talent. However, the UK Government has now announced major changes from Spring 2024 to restrict the number of workers coming to the UK.
The biggest change for many businesses is a huge increase in the minimum salary threshold for Skilled Worker visa applicants – rising from £26,200 to £38,700 from 4 April 2024. This will particularly affect businesses relying on middle-income international workers, including in the hospitality industry.
The current Shortage Occupation List will also be replaced by a new, more restrictive Immigration Salary List. This change is among those likely to affect businesses in the health and social care sector, along with a ban on some workers bringing dependants and new regulatory requirements for sponsors.
There is some good news for existing sponsors, however – sponsor licences due to expire on or after 6 April will now be automatically extended by ten years.
More challenges for the hospitality industry
According to analysis by the Migration Observatory, the biggest impact of the huge increase in the salary threshold this spring will be felt by the hospitality industry. Home Office data shows that middle-income workers in hospitality, such as chefs and restaurant managers, tend to earn around the current salary threshold of £26,200. They will no longer be eligible for the Skilled Worker visa.
This is unwelcome news to a sector already experiencing a recruitment crisis. Post-Brexit hospitality vacancies have increased by 72% and the number of EU workers in the industry has fallen by 26%.
There is an important opportunity for hospitality businesses to review their short- to medium-term recruitment plans and ensure roles which do not meet the new salary threshold are filled before it comes into force. The UK Government has said that those already in the Skilled Worker route – including those with valid applications not yet decided by 4 April 2024 – will not be subject to the new salary threshold when they change employment, extend their visas or settle. The process of sponsoring a worker can take time and given recent Home Office processing delays, it would be advisable for businesses to make arrangement well in advance of the salary threshold changing.
A mixed picture for the health and care sector
The salary threshold increase will not affect workers on the Health and Social Care visa, which made up more than half of all Skilled Worker visas last year. Workers subject to national pay scales will likewise not be required to meet the salary threshold. Health and care workers will also remain exempt from the Immigration Health Surcharge, which increased from £624 to £1,035 in February 2024.
However, one major change is that care workers and senior care workers will no longer be permitted to bring family members to the UK from 11 March 2024. In addition, care providers of all types seeking to sponsor care workers in England will need to be regulated by the Care Quality Commission.
In addition, the replacement of the Shortage Occupation List presents a problem for businesses in the health and care sector, many of whom rely on international workers to fill roles facing the most acute recruitment challenges. The new Immigration Salary List will reduce the number of shortage occupations and end the 20% going rate salary discount currently applicable to shortage occupations.
These new barriers make the UK a much less attractive destination for international workers in the health and care sectors. They have been strongly criticised by the Royal College of Nursing, Royal College of Surgeons of Edinburgh, NHS Providers, Care England and trade unions Unison and GMB.
Cutting the red tape for sponsor licence holders
Amid these new challenges, there is some welcome news for sponsor licence holders. The renewal of sponsor licences will be made automatic for all licences due to expire on or after 6 April 2024. This somewhat unexpected change means that businesses will no longer need to manage the time and cost of licence renewal every four years.
A word of warning, however: businesses must be careful to ensure that they continue to comply with their sponsor licence duties now that they will not be prompted to do so by an upcoming renewal deadline. One common cause of compliance breaches is failure to notify the Home Office of changes within the business – such as a change in personnel, a relocation or a sponsored worker’s promotion. Businesses should ensure that anyone managing their sponsor licence is fully up to date on their duties and the effect of new changes.
The UK’s changing immigration landscape
There is no doubt that the current UK Government’s relentless pursuit of a reduction in net migration at all costs presents serious challenges for businesses. This particularly affects businesses in sectors already hit by post-Brexit labour shortages, including hospitality and social care. Louise Crichton, Senior Solicitor in our Visas & Immigration team, has reviewed this year’s upcoming changes to the immigration landscape more widely in her latest blog.
At Thorntons, our team of experienced immigration solicitors can assist businesses to navigate this challenging immigration landscape – from recruiting a first overseas worker to ensuring compliance with fast-changing rules. We now offer bespoke training for sponsor licence holders, delivered by our Law Society Accredited Immigration Specialist, Jacqueline Moore. For advice and support, contact us on 03330 430 350.
