STEVEN DUNN says changes in the immigration regime have fallen short of promises
Since the new immigration regime was introduced on 1 January 2021, several sectors in the UK economy have struggled to recruit. If employers were hoping that the new Labour government would be more sympathetic to their situation, then regrettably they will have been disappointed by recent developments.
Immigration was a key issue for both the Conservatives and Labour during the 2024 general election campaign with both parties committed to reducing net annual migration. On taking office, the new Labour government was quick to confirm its intention to continue with many of the changes the previous government had made.
This included the changes made to the Skilled Worker visa in Spring 2024 by which the minimum salary for most jobs increased significantly from £26,200 p.a. to £38,700 p.a. and abolishing the dispensation by which employers could pay 20% less for jobs on what was known as the ‘shortage occupation list.’
Further changes had also meant that students and workers on the Health & Care Worker visa would no longer be able to bring their dependants to the UK
The government planned to ‘upskill’ the UK workforce, identifying key skills shortages and improving access to training and apprenticeships and would take a long-term strategic approach that linked immigration and skills.
As part of this new approach, input would be sought from the Migration Advisory Commission (MAC), the non-departmental body which advises the Home Office, various government departments, the devolved governments, and employers and unions alike and taking a sector-by-sector approach. MAC was commissioned to start by looking at IT and engineering, but while it issued its report in May it has yet to be asked to look at any other sectors.
Despite the promised ‘joined up’ approach to immigration policy, there seems to have been no consultation or discussion with any of those other stakeholders before the government announced further changes to the Skilled Worker route on 1 July, and which came into force just three weeks later.
The minimum salary threshold increased again to £41,700 p.a., but more significantly the minimum qualifications required also increased from A-Level to degree equivalent. This move alone automatically meant over 120 roles were no longer eligible for sponsorship, including chefs, medical and dental technicians, early education and childcare practitioners, plasterers and glaziers. In a further blow to the care sector, the Home Office also closed the route entirely for new applicants.
While these changes do seem likely to reduce net migration to the UK, their impact on the UK economy is far less clear. It’s also disappointing that they were implemented without consultation or any sign of the sort of ‘upskilling’ that had been promised.
Immigration policy is generally a synthesis of political and economic considerations, but amidst the febrile debate which continues to rage on this subject, regrettably the new government just like its predecessor has found itself compelled to focus on the politics at the potential expense to the economy.
It is difficult to see things changing in the immediate future and any employer wishing to recruit from abroad will need advice more than ever.
Steven Dunn is head of pensions and business immigration law at Vialex
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