UK Business Immigration: the next wave of change
UK Business Immigration: the next wave of change
Whilst Summer headlines have centred on Channel crossings and asylum policy, significant reforms to the UK’s Skilled Worker and business migration routes quietly took effect, somewhat under the radar, in July 2025 (as outlined in our article Immigration Rules Overhaul).
Those changes were just the beginning. Although August has seen a relative lull, the Government remains committed to further tightening the immigration system by the end of the year. Here is a summary of upcoming changes:
1. Immigration Skills Charge set to rise by 32%
The Government's May 2025 Immigration White Paper confirmed a 32% uplift in the Immigration Skills Charge (ISC)—the most significant increase since its introduction in 2017. Once this comes into effect (which is anticipated later this year), medium and large sponsors will pay approximately £1,320 per year, up from £1,000, while small or charitable sponsors' fees will jump from £364 to £480. The revenue is earmarked for upskilling domestic workers in the most affected sectors.
2. English language expectations to tighten — settlement applications will require knowledge of English at B2 Level
The White Paper also signals an increase in the required English proficiency for visa applicants—particularly for settlement routes, shifting from CEFR level B1 to B2. This affects both main applicants and adult dependents and heightens the integration standard for long-term residency.
3. Family route reforms under consideration
Proposed updates in the White Paper include potential changes to the family visa system, including:
- stricter relationship proof requirements to confirm genuine partnerships;
- enhanced financial thresholds for family visas to reduce taxpayer dependency;
- new “good character” clauses that broaden grounds for refusal.
4. The digital future – fewer stickers: eVisa experience becomes the norm
Commencing on 15 July 2025, the Home Office began phasing out paper vignette stamps for entry clearance under Study, Work, and certain Work-related routes. Instead, applicants must now create and access their UKVI digital accounts to receive their visa status, thereby streamlining entry, but shifting administrative requirements.
5. Extension of qualifying period for indefinite leave to remain applications
Since Labour’s White Paper earlier in the year, further clarity has emerged surrounding proposals to extend the qualifying period for Indefinite Leave to Remain from 5 to 10 years for most visa categories, and to introduce a longer, more restricted path to permanent settlement.
These longer settlement timelines continue to be under active review and are gaining traction ahead of expected legislative action.
What Should Employers Do?
- budget accordingly, in line with upcoming increase in Immigration Skills Charge;
- if employees rely on family sponsorship, prepare to support them;
- if any employees are eligible for indefinite leave to remain, advise them to submit their applications sooner, rather than later;
- update recruitment strategies: consider whether some roles could be restructured to meet eligibility or whether alternative visa routes might be available.
Conclusion
The increased cost of sponsorship, higher language standards, and looming family route overhauls mean that employers should assess impact and affordability, review supporting processes, and adapt internal advice and expectations.
At Boardside Law, we are helping clients anticipate and adapt to this rapidly changing immigration landscape. If you’re considering overseas hires, or want to check how the reforms affect existing sponsored workers, our business immigration team is here to help.
Please share Boardside's expertise and insights with colleagues and associates. Thank you.
Working closely with you, we can navigate the hurdles you face, to build a stronger business and to achieve commercial advantage. Call us for an initial conversation on 0330 0949338
