The UK Government has implemented significant reforms to its immigration framework as of 22 July 2025, marking one of the most transformative resets since the introduction of the post-Brexit points-based system. Employers relying on overseas recruitment must act quickly to stay compliant. Here’s a breakdown of the key changes, their impact on employers, and the actions businesses should consider.
Higher Skill Thresholds
The biggest shift is the rise in the minimum skill threshold for the Skilled Worker visa. Roles must now meet RQF Level 6, equivalent to a bachelor’s degree, for visa eligibility. This immediately disqualifies over 180 roles at RQF Levels 3–5 which were previously eligible.
- No grace period applies; compliance began on 22 July.
- Transitional rules apply for those already on visas, depending on when their Certificate of Sponsorship (CoS) was issued.
Impact: Employers can no longer use Skilled Worker sponsorship to fill non-graduate positions, such as technicians or administrative staff, unless those roles appear on the new Temporary Shortage List. This will push organisations toward targeting higher-skill, senior roles where the domestic talent pool is more limited.
Salary Threshold Increases
The minimum salary thresholds have risen again, adding further pressure on employers’ payrolls.
- The standard minimum has increased from £38,700 to £41,600.
- For roles eligible under transitional arrangements, thresholds now start from £31,300.
- PhD and STEM concessions continue, albeit at higher salary levels.
- The hourly rate moves to £17.13 (based on 37.5 hours/week).
Impact: Recruiting junior or mid-level overseas staff is now significantly harder, unless salaries are raised. Employers will likely need to undertake salary benchmarking and consider the financial implications of supporting sponsored employees at these higher thresholds.
Introduction of the Temporary Shortage List (TSL)
Replacing the Immigration Salary List, the TSL offers a time-limited pathway for roles below RQF 6.
- Employers must prove workforce strategies that commit to training UK staff.
- The scheme runs until 31 December 2026 (subject to review).
- Sponsored workers under the TSL cannot bring dependents.
Impact: This provides short-term relief for sectors with genuine skills gaps, but with strict requirements and a definite expiry. Employers should not rely on this for long-term resourcing.
Closure of the Care Worker Route
Effective immediately, employers can no longer sponsor new overseas care workers. Existing visa holders remain unaffected and can extend their stay.
Impact: Care providers reliant on international staff face a recruitment squeeze and must now focus on domestic retention and hiring.
Expansion of the GAE Route
The Government Authorised Exchange scheme has been extended to cover RQF Level 6 roles, enabling short-term placements and internships with lighter compliance obligations. While not a solution for long-term recruitment, it offers opportunities for filling temporary workforce gaps.
Preparing for What’s Next
These are only the first wave of reforms. By the end of 2025, the Government has pledged to further:
- Increase the Immigration Skills Charge
- Raise English-language requirements
- Announce a new family route framework
Employer Action Points
- Review job roles against RQF 6 thresholds.
- Audit salaries of current and planned visa staff.
- Act quickly to issue CoS where possible.
- Adjust recruitment strategies to anticipate the TSL expiry.
- Prepare HR teams with updated compliance training.
The July reforms mark a fundamental reset of the UK immigration system. Employers should see this not only as a compliance burden but also as a call for long-term workforce planning, domestic training investment, and strategic hiring.
Disclaimer: The information published in the above newsletter is collected from various sources in electronic medium and analyzed by the firm. The reader is advised to consult the attorney qualified in their jurisdiction, before acting on any information contained in this newsletter. India Juris excepts no liability what so ever in this regard.
