UK Immigration Changes Announced to Cut Net Migration

On Monday, 4 December 2023, the UK government announced a new plan to cut migration levels to the UK with the intention to ensure that “around 300,000 people who came to the UK last year would now not be able to come.”

This is following a previous increase in most immigration and nationality fees by 15% earlier this year and an upcoming staggering increase of 66% in Immigration Health Surcharge from £624 per year (£470 for children) to £1,035 per year (£776 for children) from January 2024. Lastly, a new draft Code of Practice on the civil penalty scheme for employers has been published, which will apply to all right to work checks from 22 January 2024. The civil penalty for each illegal worker will rise from £15,000 to £45,000 (if there are no previous breaches in the last 3 years) and £20,000 to £60,000 for repeated breaches.

The new immigration plan includes the following key changes:

• Significant increase in the minimum salary threshold for Skilled Workers from its current position of £26,200 to £38,700, except for Health and Care visa routes.
• Abolish the 20% going-rate salary discount for shortage occupations and replace the Shortage Occupation List with a new Immigration Salary List, which will retain a general threshold discount.
• Review the Graduate visa route to prevent abuse and ensure the route is working the way it was intended.
• Increase the minimum earnings required for British citizens and those settled in the UK who want their family members to join them. This is currently at £18,600 for a single applicant and the suggestion is to match this with the minimum salary level for workers at £38,700 (a huge increase by 108%).
• In line with upcoming student visa restrictions on bringing the dependent family members, the new suggestion will also prevent overseas health and care workers from bringing their dependents to the UK with them (e.g. spouse, children etc.).

These measures are quite restrictive and will likely impact certain industries in the UK that are struggling to find employees. Several industries, including the sciences, NHS, construction, manufacturing and hospitality, currently have high levels of work shortages in the UK following the end of free movement with the EU. The higher salaries will have a significant impact on the graduate roles recruitment and regions outside of London, where the median salary level is generally lower.

As a general election looms to be held no later than 25 January 2025 and thus the possibility of a change in government rises, it remains uncertain if these measures will stay, or whether we will see a reversal to the rules.