Immigration Reforms: What Employers Need to Know

The UK Government has announced sweeping changes to the immigration system, set out in its Immigration White Paper this week (12 May). The proposals, which Ministers claim are about ‘taking back control of our borders’, signal a tougher and more restrictive regime for employers who rely on overseas talent.

Here are the key changes and what they mean in practice for employers:

The Headline Changes

Skilled Worker visas will become harder to obtain

• minimum salary thresholds are rising, as are requirements for higher skills levels;
• it is anticipated that around 180 roles currently eligible for sponsorship will no longer qualify under the new criteria.

Tougher English language requirements

• Skilled Workers and their adult dependants will face higher thresholds both at entry and    during extensions or settlement.

Higher sponsorship costs

• the Immigration Skills Charge will increase by 32% (for medium and large-sized businesses it is currently £1,000 per year per Skilled Worker; for small businesses it is £364 per year);
• the overall cost of sponsoring a worker to settled status could rise to over £14,000 per individual (taking into account the Certificate of Sponsorship fee, the Immigration Skills Charge, visa application fees and the Health Surcharge).

The end of the care worker visa route

• no new care workers will be eligible for sponsorship;
• existing sponsored care workers may extend/switch until 2028.

Graduate visas to be capped at 18 months

• a reduction from the current 2-year post-study route, limiting graduate retention.

Settlement and citizenship to require longer residence

• eligibility for settlement will now require 10 years of residence, not five.

Implications for Employers

The direction of travel is clear: the Government is prioritising reduced net migration over labour market flexibility. This creates serious challenges for businesses across various sectors, not only in traditionally lower-paid industries such as care, hospitality, and retail, but also in professional services and technology.

With higher costs, longer pathways to permanence, and fewer eligible roles, employers face:

• tighter recruitment pipelines
• increased compliance burdens
• budgetary impacts on workforce planning

Some experts have already described the removal of the 20% salary discount for shortage roles and the closure of the social care visa as ‘a heavy-handed approach’ that risks sending the message that the UK is closed for business.

How Boardside Can Help

Now more than ever, businesses need to approach immigration strategically, with the right advice, timing and documentation. At Boardside, we work closely with employers to:

• audit your existing sponsored workforce and contracts;
• identify whether current employees should extend visas before the rules tighten;
• plan future hires around changing eligibility criteria;
• assess ongoing compliance with sponsor licence duties;
• navigate the rising costs of immigration and plan for long-term stability.

If you are unsure how these reforms may affect your organisation, or if you are considering sponsoring overseas nationals under the current regime, please get in touch with our Business Immigration Team. With change on the horizon, early action could save time, money and risk.