As I write this article, I am very much aware that following the election this Thursday, there may well be a new government in place on Friday. The present government have introduced many new rules and regulations particularly from the beginning of April of this year continuing with their aim of reducing net migration. Since 4 April 2024, the minimum salary thresholds for Skilled Worker sponsorship into the UK have been increased from £26,200 to £38,700 with very limited exceptions. This basically means that when a UK employer wishes to employ a foreign national, it will either need to pay a minimum salary of £38,700 or that which is noted in a Home Office occupation code, whichever is higher. The salary threshold has therefore been increased by 48% and the net effect of this is that many thousands of foreign workers who entered the UK prior to the rule change would not have been able to do so now.
Furthermore, the Home Office operated a shortage occupation list which contained many jobs which the Government accepted were in short supply in the UK. This list has now been abolished and replaced by an Immigration Salary List (ISL) but this includes far fewer jobs on it. If there is a new government elected on Friday, it remains to be seen whether they will continue with the same mantel of reducing net migration or whether they will seek to introduce flexibility into the Immigration Rules. From a practical perspective, we are now coming across many businesses who are in dire need of specialist skilled labour but are unable to source this from within the UK and they are now struggling to recruit foreign workers, because of the hugely increase salary bandings.
It is still worth bearing in mind however that if a business is looking to sponsor somebody under the age of 26, then there is the possibility of paying a lower salary for a limited period of time as it can utilise the New Entrant provisions. Furthermore, if a foreign student has graduated in the UK, then they can apply for a Graduate Visa and this will allow them to work unsponsored in the UK for 2 years. During this time, employers can employ such visa holders without having to pay the hugely increased salaries which are required under Skilled Worker sponsorship.
There are therefore options available to employers but as with Immigration Law generally, it is a fast-paced environment with rules constantly being changed and updated. The present Government states that it is committed to supporting the domestic workforce and that it is aiming to provide support to many long-term unemployed people in the UK by helping them back into work and its position is that it will be investing several billion pounds into its so called 'Back to Work plan.' Whether this will plug the skills gap which the UK is experiencing, will remain to be seen.
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