UK Update: Changes to Immigration Rules set to Impact Hard-Pressed Sectors

Visa changes will create additional pressures for already hard-pressed sectors.

Last week, the home secretary, James Cleverly, announced a raft of very significant changes to immigration rules that will radically alter the landscape for employers who need international skills and labour.

Arguably the most significant of these changes to immigration rules is the proposal to raise the minimum salary threshold foreign workers must meet to be eligible for a skilled worker visa from £26,200 to £38,700 – a near 50% increase to a figure that is almost double the national minimum wage.

Among the other plans Cleverly set out are a review of the post-study work graduate visa route that allows graduates to stay in the UK for two years after successfully completing their course, preventing care workers from bringing their family members to the UK with them, and a requirement for British nationals to earn over £38,700 (an increase from the existing £18,600 threshold) in order to bring their non-UK partner and family members to the UK.

There will also be a review of the shortage occupation list, which exists to help employers fill certain roles.

According to the government’s own estimates, 300,000 people who came to the UK last year would not be eligible to do so in the future as a result of these changes to immigration rules. This will have a considerable impact on what is an already tight UK labour market. This is particularly the case in sectors that are both more dependent on foreign workers and already under pressure due to shortages – in areas like health and care, hospitality, construction, and agriculture – as well as SMEs and start ups.

Earlier this year, the trade body Hospitality UK reported 132,000 vacancies in the sector, while a survey of farming businesses conducted by the National Farmers’ Union found that 77% of respondents attributed the difficulty in recruiting workers was down to a lack of applicants.

Salaries in these sectors vary by role and region but in most cases, they will be below the new threshold set out in the changes to immigration rules. This means that sponsoring international staff will not be an option for many employers unless these roles come up with a sizeable uplift in salary – something most firms will not be able to afford.

Although health and social care workers will be exempt from the £38,700 salary threshold, the fact that they can no longer bring dependents with them to the UK may deter many who might have considered relocating previously. There are already 165,000 vacancies in the adult care sector in England alone.

Many industry groups have been quick to voice their concerns about the changes to immigration rules and the additional pressures it will create at a time when there is already considerable challenge. In seeking to get tough on immigration, it seems that the government is also making things tough for businesses that will need to start rethinking their strategies about where and how they source their talent and skills from.

Faced with these changes to immigration rules, it will be more important than ever that those who are recruiting international workers seek the right advice in order to achieve the best possible outcome.

By Burness Paull LLP, Scotland, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact ukscotland@transatlanticlaw.com

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