The new Labour government has pledged to reform the UK's points-based immigration system to create a "fair and properly managed immigration system" that addresses skills shortages and ensures proper remuneration for workers. While they do not intend to introduce formal caps on immigration routes, Labour plans to implement “appropriate restrictions on visas” to reduce net migration.
Key aspects of this reform include:
Strengthening the Migration Advisory Committee (MAC) to work more strategically with other government bodies like Skills England to forecast future trends and provide evidence-based recommendations.
Reviewing the impact of recent increases to the Skilled Worker salary threshold, which was raised from £26,200 to £38,700.
Potentially reintroducing the 'resident labour market test', requiring employers to demonstrate attempts to recruit within the UK before hiring from overseas.
Focus on domestic skills and workforce development
Labour's immigration strategy emphasises reducing reliance on overseas workers by addressing home-grown skills shortages. This approach includes:
Linking immigration policy more closely with skills development and industrial strategy. Labour has identified skills shortages in health and social care, construction, engineering, and IT. While migrant workers are currently needed, Labour plans to mandate that employers develop workforce and training plans with government departments to train local workers and reduce future dependence on overseas labour.
Introducing training plans and requirements for key occupations, particularly in sectors like construction, IT, and engineering.
Reforming the apprenticeship levy to support upskilling the national workforce.
Establishing fair pay agreements for adult social care workers.
The government aims to end the practice of sectors "languishing endlessly on immigration shortage lists" without plans to address underlying skills gaps.
Enhanced compliance and enforcement
Labour has indicated a tougher stance on immigration rule compliance and exploitation prevention:
Increasing penalties for "rogue employers" who fail to comply with immigration rules and wider employment laws.
Implementing stronger visa penalties for employers who flout labour and minimum wage laws.
Potentially lengthening ineligibility periods for obtaining sponsor licences after enforcement actions.
Conducting investigations into the treatment of migrant workers, particularly in sectors like social care.
Additional considerations
Labour plans to retain the ban on care workers and students bringing dependants to the UK.
The government may seek to negotiate new arrangements with the EU for touring performers.
Labour has paused the planned increase in the minimum income requirement for 5-year partner visas at £29,000, pending a MAC review. The threshold was due to increase later this year to £34,500 and again in early 2025 to £38,700.
The party has pledged to remove visa fees for non-UK veterans and their dependants who have served for four or more years.
No specific changes to the Student and Graduate routes have been announced. The previous government asked the Migration Advisory Committee to review the Graduate route, and the main finding was that it should remain unchanged.
Preparing for increased compliance and enforcement
Conduct a thorough audit of current right to work checking processes.
Implement up-to-date policies that align with the latest Home Office guidance.
Consider using digital identity document validation technology for more efficient and accurate checks.
Regularly review and update sponsor management systems.
Ensure all sponsored workers' records are accurate and up-to-date.
Prepare for potential increased audits and compliance checks by the Home Office.
Employers should stay informed about these potential changes and prepare to adapt their recruitment and compliance strategies accordingly. It's crucial to maintain up-to-date knowledge of immigration laws and government guidance to avoid potential penalties and ensure continued ability to sponsor overseas workers.
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