Impact on employers and education providers

The proposed reforms will have wide-reaching consequences for UK businesses, education institutions, and individuals seeking to work or study in the UK:

• The worker reforms will have a significant impact on UK businesses and employers who currently rely on a skilled migrant workforce. The government is setting a clear pathway for businesses to invest in upskilling their existing workforce and to recruit domestically.
• For businesses that continue to recruit skilled migrants at RQF 6, they will face increased costs, including a rise in the Immigration Skills Charge and higher salary thresholds.
• The study reforms focus on compliance and transparency. These changes are intended to ensure student sponsors enrol only genuine international students.
• Reducing the length of the Graduate visa to 18 months may significantly impact international student applications, and the proposed levy on international student income may cause some institutions to reconsider their Student sponsor licences.

Work reforms

• The skill level for skilled workers will be increased from RQF3 (A-level equivalent) to RQF 6 (Bachelor’s degree) and above and salary thresholds will rise.
• There will be an increase in the Immigration Skills Charge, by 32% in line with inflation.
• Social care visas will be closed to new applications from abroad. For a transition period until 2028, visa extensions and in-country switching will be allowed for those already in the country with working rights. This will remain under review.
• The Labour Market Evidence Group will be created to draw on data available in order to make informed decisions about the state of the labour market and the role that different policies should play, rather than always relying on migration.
• New requirements will be launched for workforce strategies for key sectors where there are high levels of recruitment from abroad.
• A new Temporary Shortage List will be established to provide time-limited access to the points-based immigration system. Occupations below RQF 6 must be listed on the Temporary Shortage List in order to gain access to the immigration system.
• Access to the points-based immigration system will be limited to occupations where there have been long-term shortages, on a time-limited basis, where the MAC has advised it is justified, where there is a workforce strategy in place, and where employers seeking to recruit from abroad are committed to playing their part in increasing recruitment from the domestic workforce.
• The government will explore how to ensure that employers using the immigration system are incentivised to invest in boosting domestic talent, including options to restrict employers sponsoring skilled visas if they are not committed to increasing skills training.
• Reforms will be introduced to allow a limited pool of UNHCR-recognised refugees and displaced people to apply for employment through the existing skilled worker routes, but only where they have the skills to do so.
• Very highly skilled migrants will have opportunities to come to the UK and access targeted routes for the brightest and best global talent.

Study reforms

• Student sponsors will face strengthened requirements they must meet in order to recruit international students.
• The minimum pass requirement of each Basic Compliance Assessment (BCA) metric will increase by five percentage points.
• A new Red-Amber-Green banding system will be introduced to rate the BCA performance of each Student sponsor. This will create transparency to the Student sponsor, the authorities and the public, showing which institutions are achieving a high rate of compliance, and which are at risk of failing.
• New interventions will be introduced for sponsors who are close to failing their metrics. This will include being placed on a bespoke action plan designed to improve compliance, and imposing limits on the number of new international students they can recruit while they are subject to the action plans.
• All student sponsors wishing to use recruitment agents for overseas students will be required to sign up to the Agent Quality Framework, designed to maintain the highest standards of agent management.
• Student sponsors will be required to demonstrate that they are considering local impacts when taking decisions on international recruitment.
• The Short-Term Study accreditation bodies will be subject to a review to ensure that their processes are robust and to consider what further checks need to be put in place to ensure the right level of scrutiny is being applied both before an organisation is accredited, and when that accreditation is renewed.
• The period of stay permitted for graduates to remain in the UK after their studies will be reduced to a period of 18 months.
• The government will explore introducing a levy on higher education provider income from international students, to be reinvested into skills.

English language and settlement reforms

• English language requirements for skilled workers and workers where a language requirement already applies will be increased from B1 to B2 (Independent User) levels, in accordance with the Common European Framework for Reference for Languages (CEFR).
• English language requirement for all adult dependants of workers and students will be introduced at level A1 (Basic User) to align to spousal and partner routes. This requirement is likely to increase again over time.
• Requirements will be introduced to demonstrate progression to level A2 (Basic User) for any visa extension, and then to B2 (Independent User) at the settlement stage.
• Existing English language requirements for settlement across the majority of immigration routes will be increased from B1 to B2 (Independent User).
• The government will reform settlement and citizenship rules by expanding the points-based system and increasing the standard qualifying period for settlement to 10 years.
• Individuals will have the opportunity to reduce the qualifying period to settlement and citizenship based on contributions to the UK economy and society.
• There will be a refresh of the life in the UK test and how it operates.

These reforms signal a significant shift in the UK’s immigration landscape, with far-reaching implications for employers, education providers, and individuals. As the details evolve, it will be vital to stay informed and prepared for the changes ahead.