UK immigration law changes 2025: What employers should know

The UK Government has unveiled one of the most significant overhauls to the immigration system in recent years, publishing its white paper “Restoring Control over the Immigration System”. The proposed changes, subject to consultation and future legislation, signal a stricter, more selective approach to migrant labour, with a clear focus on reducing net migration, particularly in lower-skilled sectors.

For employers who rely on overseas talent, especially in sectors like health and social care, hospitality, and construction, these proposals warrant immediate attention. Even though implementation will not be immediate, the direction of travel is clear, and it is likely to have material consequences for workforce planning and operational budgets in the months and years ahead.

In this article, we explore the proposed reforms, the context behind them, as well as provide practical immigration advice for UK employers responding to the Government’s latest proposals.

The UK immigration landscape

The UK’s post-Brexit immigration system was introduced in 2021, with the aim of creating a “global points-based” regime that reduced reliance on low-paid labour and encouraged higher-skilled migration. Since then, the Skilled Worker route has become the primary pathway for employing overseas nationals, with many UK businesses adapting quickly to the new framework.

However, rising net migration figures, coupled with political and public pressure, have prompted the Government to revisit key aspects of the system. The Restoring Control white paper outlines a series of proposed changes designed to reduce immigration levels, increase compliance, and ensure the system is “delivering for the British people.”

While these changes are not yet law, they reflect the Government’s policy intentions and are expected to take shape through phased legislative reform starting later this year.

Key proposals in the white paper

Raising the skills threshold: New skilled worker visa rules

The new skilled worker visa rules will increase the skills threshold from RQF Level 3 to RQF Level 6, significantly narrowing the range of eligible roles. This change would restrict sponsorship to roles that require graduate-level qualifications, excluding many current roles in logistics, hospitality, and social care.

Implication for employers: Roles previously eligible for sponsorship under Level 3 – 5 will no longer qualify. Minimum salary thresholds are also expected to rise in line with the higher skill level requirement.

Increased immigration skills charge (ISC)

The ISC, currently £1,000 per sponsored worker per year, is set to rise by 32%. This increase reflects the Government’s aim to reduce employer reliance on overseas labour and to support domestic skills training.

Implication for employers: The cost of recruiting and retaining migrant workers will rise significantly. Organisations should review their budgeting and workforce planning accordingly.

Closure of the social care visa route

In a controversial move, the visa route for new international care workers will be closed to new applicants. The social care visa closure in the UK is expected to have a major impact on care providers who rely heavily on international recruitment to fill workforce gaps. Existing visa holders will not be affected immediately, but no new care workers will be eligible under the Skilled Worker scheme.

Implication for employers: A significant challenge for care providers, many of whom have relied on international recruitment to fill staffing gaps. Workforce shortages are likely to deepen.

Graduate route reduced

The post-study graduate visa will be cut from 24 months to 18 months. The Home Office has also indicated stricter eligibility checks, including compliance with student attendance and progression.

Implication for employers: Reduced time to retain international graduates in the workforce and additional scrutiny of eligibility. Businesses should plan recruitment and visa transitions earlier.

Tightening English language rules

English language requirements will be strengthened across most routes, including, for the first time, adult dependent relatives.

Implication for employers: A higher administrative burden on sponsorship applications and additional assessments may be required.

Settlement (ILR) changes

The qualifying period for Indefinite Leave to Remain (ILR) is to double from five to ten years for most categories.

Implication for employers: Long-term employees may remain dependent on employer sponsorship for longer, increasing costs and administrative burden.

Timescales and implementation

Although the white paper outlines the Government’s policy direction, the changes are not yet in force. We expect consultation to continue into summer 2025, with draft legislation likely to be introduced in late 2025 or early 2026. A phased implementation is anticipated throughout 2026.

What employers should do now

With uncertainty around dates but clarity on policy direction, employers should take proactive steps now to protect their workforce continuity and legal compliance:

• Audit your workforce: Identify which employees are on graduate or Skilled Worker visas and assess which roles may fall below the proposed skill or salary thresholds.
• Reassess sponsorship processes: Review how you currently sponsor overseas workers in the UK, focusing on roles that may no longer meet the proposed skill or salary thresholds.
• Advance key applications: Consider bringing forward visa renewals and ILR applications where eligibility is likely to be impacted.
• Review recruitment strategies: Reassess your reliance on international hiring for roles that may soon be ineligible and consider upskilling existing staff or investing in domestic recruitment.
• Communicate with employees: Keep your sponsored workers informed and reassured. Uncertainty creates anxiety, clear communication will help maintain morale and retention.
• Budget for increased costs: Anticipate higher sponsorship fees, legal costs, and administrative resource requirements.

Looking ahead at UK immigration law

While the white paper proposals are not yet law, they mark a definitive shift towards a more restrictive and controlled immigration regime. We anticipate increased Home Office scrutiny on all sponsorship applications, more enforcement activity, and further policy tightening before the next general election.

Employers should also prepare for additional sector-specific guidance and targeted reforms. For example, we expect to see new compliance codes for education providers or revised sponsorship guidance for the tech and life sciences sectors.

Ultimately, this is a moment for HR and compliance teams to be on the front foot. Early action now could mean avoiding business disruption later.