UK’s New Immigration Reforms: Impact on Businesses

The UK government has just released an exhaustive reform of the country’s immigration system. Announced by Prime Minister Keir Starmer and detailed in a new White Paper, the measures aim to significantly reduce legal migration, including through skilled worker visas, one of the most common routes used by UK employers hiring international professionals. 

If your company hires or relocates talent from overseas, these changes may affect your ability to recruit and retain global professionals.

In this article, we explain what’s changing, how it affects skilled migration, and what it means for employers.

What’s happening with UK Immigration?

The new immigration White Paper, titled “Restoring Control Over the Immigration System”, introduces a set of measures aimed at reducing legal migration, which makes up the majority of migration to the UK. The government argues that previous policies created overreliance on international recruitment, particularly in sectors like adult social care, and that higher thresholds are needed to promote domestic skills development.

According to the Prime Minister, “every area of the UK’s immigration system will be tightened.” However, Starmer also noted that Britain must still “compete for the best talent in the world,” hinting that some pathways—especially for highly skilled individuals—will remain accessible, although under stricter conditions.

What are the main changes to skilled migration?

1. Higher salary thresholds and skills requirements

One of the most significant changes is a return to a higher skills requirement. Roles must now meet RQF Level 6 (graduate level) to qualify for a Skilled Worker visa. This change will exclude a number of positions that previously qualified under RQF Level 3.

In addition, the minimum salary threshold will be raised. While exact new salary figures weren’t specified in the announcement, the removal of salary discounts (see below) means all sponsored roles must meet full threshold levels without exceptions.

2. End of the Immigration Salary List

The Immigration Salary List, previously known as the Shortage Occupation List, offered reduced salary thresholds for roles experiencing long-term shortages. This system will now be removed, to be replaced by a Time-Limited Temporary Shortage List.

In its place, employers will only be able to sponsor roles at below RQF6 (i.e. below graduate degree level) if:

• There is evidence of a long-term shortage
• The Migration Advisory Committee (MAC) supports the shortage classification
• A workforce strategy is in place
• Employers demonstrate investment in domestic training

The emphasis is now on more targeted and temporary use of immigration to fill gaps, rather than long-term reliance on overseas workers. 

Employers will need greater clarity from the Government on training, and wider development plans will need to be in place to meet the required workforce criteria. They will also need to understand MAC’s criteria for determining whether or not a shortage classification is justified. (More in section 5, below)

3. Restrictions on international recruitment for Care Workers

International recruitment for social care roles will be closed to new applicants.

This change is likely to have a serious impact on the adult social care sector, which has come to rely heavily on overseas hires to fill shortages. While current visa holders can continue to extend or switch their visas within the UK during a transition period (until 2028), no new care visas will be issued.

Industry voices are already raising concern. Leaders in the care sector describe the decision as harmful and unfair, pointing to the lack of warning or alternative solutions. There is also uncertainty about what happens after 2028 and whether the new requirements for workforce strategies will be realistic for care providers, many of whom are already under pressure.

4. New rules for Student and Graduate Visas

Universities and other educational institutions will face stricter requirements to keep their sponsor status. Those that fall behind in compliance could be placed on action plans and temporarily limited in how many international students they can admit.

The Graduate Route will also be reduced, allowing international graduates to stay in the UK for only 18 months after completing their studies, down from the current 2 years.

These changes could make the UK less attractive to international students and could affect universities that rely on global admissions for funding and talent development. It may also reduce the pipeline of young graduates entering the UK workforce, especially in sectors that recruit heavily from this group.

5. Domestic training requirements for employers

Employers hiring internationally will now need to show they are taking steps to grow domestic recruitment and training.

The White Paper doesn’t yet define what these workforce strategies must look like, something that’s already causing confusion among employers. Employers want clarity on what documentation or initiatives are required, especially in sectors that continue to face talent shortages.

The government is creating a new “Labour Market Evidence Group” to collect data and advise on future policy decisions. Government departments will also be expected to work more closely with employers and industry groups.

6. Stricter English language rules

English language requirements will be expanded to cover more visa routes and will now apply to adult dependents as well as main applicants. Additionally, applicants may be required to show improvement over time, although it’s not yet clear how this will be measured or enforced.

7. Longer routes to settlement and citizenship

The qualifying period for Indefinite Leave to Remain will increase from 5 to 10 years. The government also plans to extend the points-based model to settlement and citizenship decisions, based on criteria such as skills and economic contribution.

8. Higher Costs

The whitepaper release indicates that The Immigration Skills Charge (ISC) will be increased for the first time since its introduction, by 32% to bring the ISC rates in line with inflation. 

This funding increase will be allocated at the upcoming Spending Review to support skills funding for priority sectors, helping upskill the domestic workforce and reduce reliance on migration over the medium term.

How will these changes affect employers hiring international talent?

For UK employers, particularly those in fast-paced, high-growth sectors such as tech, engineering, life sciences, and digital services, these changes introduce significant new challenges and costs into the hiring process.

• Roles must now be at a graduate level or higher, reducing the talent pool available to companies. This change may disqualify a range of technical and support positions that don’t meet the RQF Level 6 requirement, even if they require niche skills or experience. Roles in operations, logistics, support engineering, and skilled trades may no longer qualify, limiting access to much-needed international expertise.
  
  
• Higher salary thresholds will increase hiring costs and make UK job offers less competitive internationally. Many businesses, particularly startups or SMEs, have relied on competitive—but not inflated—salaries to attract global professionals. The new thresholds may force companies to increase pay offers beyond their budget, or miss out on critical hires entirely.
  
  
• The removal of salary discounts (previously available through the Immigration Salary List) takes away flexibility for industries with known shortages. Sectors that once benefited from these lower thresholds—such as construction, hospitality, education, and health tech—must now meet full salary requirements across the board, regardless of market conditions or talent scarcity.
  
  
• Employers must now demonstrate investment in local talent development to justify international hires. With little guidance available on what qualifies as a valid workforce strategy, businesses may face delays or risk compliance issues while trying to adjust.
  
  
• The longer route to settlement makes it harder to retain international employees long-term. Extending the qualifying period for Indefinite Leave to Remain from 5 to 10 years introduces a level of uncertainty for both the employee and the employer. Employees may be less willing to relocate to the UK without a clear and stable path to permanence, and employers could face higher churn rates or the need to sponsor visa renewals over a longer period.
  
  
• Industries that rely on student or graduate pipelines could be affected by tighter rules and shorter post-study work periods. With the Graduate Route now limited to 18 months, businesses that have typically hired recent international graduates may have less time to bring them into long-term roles or transition them to other visa types.

What does this mean for future hiring?

Taken together, these reforms reshape the role of immigration in workforce planning. International recruitment will still be possible, but it will require more preparation, higher costs, and stronger internal systems.

For HR and talent acquisition teams, the focus may move from reactive hiring to long-term strategy. Companies will need to:

• Reassess job design and salary benchmarking to meet visa requirements. Businesses will need to carefully review which roles still qualify and whether their salary structures align with the new rules. Roles that previously worked for overseas hires may need to be adapted.
  
  
• Explore alternative visa routes for highly skilled professionals. The Global Talent visa, High Potential Individual route, and Innovator Founder visa may become more important for filling strategic roles. However, these routes come with their own eligibility criteria and may not be suitable for volume hiring.
  
  
• Strengthen internal compliance and HR processes. With new requirements for English proficiency, domestic workforce planning, and longer settlement timelines, companies may need to invest in systems and expert support to stay compliant.
  
  
• Plan for slower hiring timelines and build in more lead time for international recruitment. The additional steps and reduced flexibility could mean longer onboarding processes, especially for companies not yet familiar with these new requirements.

Ultimately, while international hiring isn’t off the table, it’s becoming more limited and more complex. Employers who rely on global talent will need to adjust their strategies now to remain competitive in the months and years ahead. To do so, the importance of having expert guidance and support, especially around compliance and eligibility, becomes even greater under the new rules.

How Jobbatical helps you adapt

The changes introduced in the UK’s new immigration White Paper bring a period of transition - and uncertainty - for employers hiring internationally.

This shift means many companies will be left with questions about what qualifies, what’s still possible, and how to stay compliant. Adjusting quickly to avoid risks will demand operational change, better planning, and expert guidance.

That’s where Jobbatical can make a difference.

Our local experts in the UK are already up to speed with the new immigration rules and understand what’s changing. We help employers adapt, reduce friction during the transition, and keep accessing the international talent they need under the new rules. 

Need help understanding how the new rules affect your hiring plans? Talk to us today.