World Immigration News

UK Immigration Reform 2025: Key Changes and Business Impacts

Release Date: 2025-05-19
Media: Watson Farley
Summary: On May 12, 2025, the UK government published a white paper titled “Restoring Control over the Immigration System”, outlining a major overhaul of immigration policy following the Labour Party’s 2024 election victory. Led by the Home Secretary, the white paper aims to reduce net migration, restore public confidence, promote fairness, and support economic growth by shifting toward a high-skill, low-volume immigration model.

Key proposals include raising the minimum skill threshold for work visas to degree-level roles (RQF Level 6), which will significantly reduce the number of eligible occupations. Migrants currently in lower-skilled roles can extend their stay, but new applicants must meet the higher standard. A Temporary Shortage List will allow limited, capped recruitment for mid-skilled roles under specific conditions, but dependants will not be permitted. The Adult Social Care visa will be closed to new overseas applicants.

The government also plans to abolish the Immigration Salary List, standardize and raise salary thresholds across the Skilled Worker route, and increase the Immigration Skills Charge. These changes are expected to raise costs for employers, particularly in sectors like construction, logistics, and hospitality that rely heavily on migrant labour.

To support high-skilled migration, the white paper proposes expanding the Global Talent and High Potential Individual visa routes, particularly for the tech, science, and creative sectors, though details remain to be clarified.

The settlement pathway (Indefinite Leave to Remain) will be extended from five to ten years for most migrants, a move that could create significant uncertainty for employers and visa holders. A points-based system may allow some applicants to shorten this period based on contributions to the UK economy and society, though no framework has yet been defined.

English language requirements will be raised to CEFR Level B2 and extended to dependant partners. The government also intends to consolidate all family-related visas into a single category with stricter financial maintenance criteria.

The Graduate Route will remain, but its duration will be shortened from two years to 18 months, including for PhD graduates.

Overall, the reforms represent a major strategic shift in UK immigration policy. While intended to prioritize high-skilled migration and reduce dependence on lower-skilled foreign labour, they are expected to create immediate challenges for employers in cost, planning, and talent retention. Businesses will need to adjust through workforce development and updated recruitment strategies while awaiting further details on the implementation timeline.
Tags: UK

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