Recent UK immigration developments for employers to note

Whilst we await the Government’s immigration White Paper setting out its broader plans for UK immigration, some changes are being rolled out and proposed in the meantime. We have set out the headline points to note below.

1. Tougher eligibility rules for skilled worker sponsors in the care sector sponsoring workers in SOC codes 6135 (Care workers and home carers) and 6136 (Senior care workers)

The Home Office’s ramping up of enforcement activity has resulted in a growing number of sponsors in the care sector losing their sponsor licence. There has also been an increase in sponsors having insufficient work to offer sponsored workers, all of which has led to a growing pool of workers in the UK who have lost sponsorship. UKVI has given these workers additional time (before cancelling their visas) to try and help them find work in the UK.

Sponsors will be required to recruit from the pool of available workers in the UK before seeking to sponsor new recruits from other immigration routes or overseas. The sponsor will have to be able to confirm that they have tried to recruit from the pool of workers and been unable to find suitable staff before they will be permitted to sponsor anyone new. This is likely to result in a marked reduction in defined CoS requests for these SOC codes and sponsorships of those switching from another route.

The changes will apply to visa applications with a CoS assigned on/after 9 April 2025 but only apply to roles working entirely in England where the applicant is applying for entry clearance or for permission to stay where they were not: (i) last granted permission in one of these SOC codes; or (ii) working for the sponsor in another route in one of these SOC codes for at least 3 months. So essentially this will only bite for those seeking entry clearance to the UK or applying to switch into the route where they haven’t already been working for the sponsor in one of these SOC codes for at least 3 months in another immigration route. Those working entirely in Scotland, Wales and Northern Ireland are unaffected by this change.

2. Skilled worker sponsors: increased salaries and restrictions on deductions

a. Increased salary requirements for CoS assigned on/after 9 April 2025

The lowest salary threshold is being uplifted from £23,200 p/a (£11.90 p/h) to £25,000 (£12.82 p/h) to reflect the latest salary data and keep in line with the market for UK workers. This marginal change will impact those in transitional groups (sponsored before 4 April 2024) relying on PhD STEM, immigration salary list or new entrant tradeable points. It will also impact those being sponsored for specific health or education roles. This change will also bite for some settlement applications.

Consequential changes have been made to the going rates of some roles. As such, it is important employers ensure they always check the latest going rates when assessing an individual’s eligibility for sponsorship.

b. Immigration cost deductions to be offset against salary

Previous changes have already prohibited the passing on of sponsorship costs to a skilled worker (the licence fee, associated administrative and legal costs, and the CoS fee). It has always been prohibited to pass on the immigration skills charge to the applicant. However, it has long been fairly common practice for sponsors to pay the visa and/or immigration health surcharge for applicants and in some cases recover that over time through regular salary deductions or recover a portion of those costs if the individual’s employment ends within a specified period of time.

To mitigate against certain costs being passed on to visa applicants and close a potential loophole whereby those applicants could essentially pay towards their own salary by investing in the sponsor’s business, the Government is tightening up on permitted deductions.

Under this change, any money paid by a visa applicant to their sponsor (or a related organisation) by way of deductions from salary, repayment of loans or investments will be subtracted from their salary. Such subtractions will be averaged over the period for which they are sponsored. Essentially this will lower the salary which can be considered towards the applicable salary threshold for compliant sponsorship – potentially bringing some below the minimum general threshold and/or going rate required.

Not all deductions will be caught by this. If payments are unrelated to business costs, immigration costs or investment, but are for a benefit offer the applicant has a genuine choice on whether to take up or not (e.g. a salary sacrifice arrangement), the deductions will not be offset against the salary paid.

There are still some unknowns surrounding this change. Whilst the explanatory memorandum accompanying the statement of changes states this change is to, among other things, mitigate against “sponsorship costs” being passed on to applicants, “immigration costs” (the term used in the new rules) are not defined. Accordingly, we await further guidance as to whether this is intended to bite for visa costs the employer has paid upfront on behalf of the individual. It is likely this change arises from concerns (largely stemming from the care sector) that recovery of visa and/or immigration health surcharge costs may act as a form of debt bondage. However, such a broad restriction would fail to acknowledge that applicants may well see this as a genuine benefit offer which they can choose to take up or not. It is also unclear at this stage whether this is intended to capture clawback clauses applicable on termination of employment. A cautious approach for now would be to assume it will if such sums are to be deducted from the individual’s salary prior to the end of their employment.

This is said to apply to those with a CoS assigned on/after 9 April 2025. Further, this only applies to the skilled worker route – not the GBM Senior or Specialist Worker route for example. Until further guidance is published, employers should carefully consider any deductions and clawback arrangements put in place with those sponsored on/after 9 April.

3. Expansion of right to work checking duties

The above changes are all contained in the latest statement of changes to the immigration rules. Hot on the heels of those changes we have had comments from the Government about an expansion in right to work checking duties. As the UK hosts a migration summit this week, the focus on illegal migration has increased further. On 30 March, the Home Secretary Yvette Cooper confirmed plans to expand the scope for illegal working fines to cover those businesses not conducting right to work checks against self-employed contractors carrying out work on behalf of a company.

At the moment employers are expected to complete right to work checks against their employees. Compliant checks will secure them a statutory excuse against civil penalties for illegal working (those penalties starting at £45k per illegal worker). Those sponsoring a self-employed contractor are required to complete a right to work check against them. If implemented, the changes would extend that duty to all businesses engaging such contactors (whether they are sponsored or not). These proposals come amid Government concerns that right to work checks are not reaching the gig economy. Such measures are seen as another tool for targeting criminal gangs promising people illegal work in the UK. Businesses would form a key gatekeeper role in preventing access to illegal work through conducting such checks. This would be a significant change for those typically heavily reliant on such workers including the construction industry, fast-food sector, beauty salons and couriers.

This would require legislative change and so is an area to keep an eye on. In the meantime, our recommended best practice remains that checks are completed against casual workers and self-employed contractors to mitigate against the operational and reputational risks of illegal working. Doing so also minimises the risk of unwittingly facilitating such illegal work.

4. Increasing immigration costs

On 9 April a number of immigration costs are set to increase, including the cost of sponsoring a skilled worker or GBM senior or specialist worker which is going from £239 to £525. Visa application fees and sponsor licence application fees are also increasing slightly. The full details can be viewed at Home Office immigration and nationality fees: 9 April 2025 - GOV.UK

Our team of business immigration experts are on hand to support with any queries you may have on these changes.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at April 2025. Specific advice should be sought for specific cases. For more information see our terms & conditions.