The Labour Government has committed to retaining many of the strict immigration rules introduced by the previous Conservative Government. This includes maintaining the increased salary thresholds for Skilled Worker visas, which were raised from £26,200 to £38,700 per annum, and the abolition of the 20% discount for shortage occupations. The Migration Advisory Committee (MAC) has been tasked with reviewing the impact of these changes, particularly in sectors such as IT, engineering, and telecommunications, to understand the reliance on international recruitment and to recommend solutions for reducing this dependency.
Regional differences and sector-specific reviews
The Labour Government has asked the MAC to explore differentiated regional immigration approaches, particularly for tech roles. This is a departure from the previous government's approach and aims to address regional disparities in salary thresholds and skills shortages. The MAC will also review the effectiveness of the Immigration Salary List (ISL), which replaced the Shortage Occupation List (SOL), to determine if it should remain in its current form.
Compliance and enforcement
Labour has promised stricter enforcement against employers who abuse the visa system. This includes maintaining current sponsor compliance obligations, such as ensuring the immigration system isn’t abused, compliance with wider UK law, and behaving in a manner conducive to the public good. Recent increases in civil penalties and compliance visits suggest this trend will continue. Employers are advised to keep abreast of upcoming changes to Home Office guidance, seek legal advice if unsure, and conduct regular audits to maintain their sponsor licences.
Graduate Visas and Youth Mobility Scheme
Both the Graduate visa and Youth Mobility Scheme, which allow young people to work in the UK without sponsorship, are likely to remain unchanged. Labour plans to continue efforts to combat the mis-selling of university courses by recruitment agents. The Youth Mobility Scheme might expand to include more countries, although Labour seems reluctant to sign a broader agreement with the EU.
Family visas
The minimum income requirement to sponsor a partner on a family visa was increased from £18,600 to £29,000 in April 2024 under the previous Government. The Labour Government has announced that this threshold will stay at £29,000 while the MAC reviews financial requirements. This review aims to balance respect for family life with ensuring the economic wellbeing of the UK.
Linking immigration with industrial strategy
Labour has emphasised that policy decisions on migration, skills, and pay should not be considered in isolation from the national industrial strategy. Migration to address skills shortages will be tied to plans to upskill the domestic workforce and improve working conditions where necessary. Sectors such as health and social care, construction, engineering, and IT have been identified for initial focus. Employers in these sectors will be required to implement workforce and training plans to reduce future reliance on overseas workers.
Additional considerations
Visa fees and surcharges: Labour has not made any specific statements regarding changes to visa fees and surcharges, which were significantly increased in February 2024. The impact of these costs on employers and employees, particularly for junior roles, remains a concern.
Resident Labour market test: There is a possibility that the Resident Labour Market Test, which was abolished in the previous Parliament, may be reintroduced. This would require employers to show they have tried to recruit domestically before hiring from overseas.
Enforcement and penalties: Labour plans to increase enforcement activity by strengthening bans preventing 'rogue employers' who breach employment or immigration laws. This includes potential longer bans on overseas recruitment for non-compliant employers and more effective enforcement of existing penalties.
Employers should stay informed about these changes and consider conducting mock audits or reviewing internal recruitment policies to ensure compliance with the evolving immigration landscape.
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