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UK immigration changes 2025: key updates to skilled worker rules and ETA scheme

30 March 2025

The UK government has recently introduced significant changes to the immigration rules, particularly affecting the Skilled Worker route and the Electronic Travel Authorisation (ETA) scheme. These changes, effective from 9 April 2025, are part of a broader strategy to align immigration policies with domestic workforce needs and to ensure fair treatment of international workers. Employers and applicants must be aware of these updates to ensure compliance and to understand their implications on recruitment and sponsorship processes.

Skilled worker route: key updates

Increase in minimum salary threshold

One of the most notable changes is the increase in the minimum salary threshold for Skilled Worker visa applicants. The previous threshold of £23,200 per year (£11.90 per hour) has been raised to £25,000 per year (£12.82 per hour). This adjustment is based on the latest Annual Survey of Hours and Earnings (ASHE) data from the Office for National Statistics (ONS) and aims to ensure that salary requirements reflect the current pay situation for UK workers. This increase is also intended to remain significantly above the National Living Wage, which is set to rise in April 2025.

For healthcare and education occupations that follow national pay scales, salary thresholds have been updated in line with the latest pay agreements. For other Skilled Worker occupations, the going rates have been adjusted solely to reflect the new minimum salary floor of £25,000 per year. Employers must ensure they offer competitive salaries to attract and retain skilled workers while complying with the latest regulations. Failure to meet these new salary requirements may result in visa refusals or sponsorship licence penalties.

Changes to salary deductions and sponsorship costs

New rules have been introduced to regulate salary deductions, ensuring fair pay and preventing exploitation of Skilled Worker visa holders. The government aims to ensure greater consistency in how paid allowances are treated, while also preventing sponsorship costs from being passed on to workers. Additionally, a loophole that previously allowed applicants to contribute towards their own salary by investing in their sponsor’s business has now been closed. This is part of a broader push to prevent financial abuse of visa applicants, ensuring that salaries paid to workers are genuine and not artificially inflated through indirect self-financing.

These measures are designed to protect workers and maintain the integrity of the Skilled Worker sponsorship system. Employers who attempt to circumvent these regulations may face severe penalties, including licence revocation and bans on future sponsorship.

New requirements for ‘New Entrant’ salary discounts

A further amendment affects new entrants benefiting from salary reductions. Previously, applicants claiming a reduced salary threshold based on training towards a recognised professional qualification were not restricted in terms of where that qualification could be obtained. The new rule now stipulates that the qualification must be a UK qualification for the applicant to be eligible for the salary reduction. This change ensures that salary discounts are only available to those actively engaging in UK-based professional development. By tightening these rules, the government aims to ensure that salary reductions are used appropriately and not exploited as a way to lower employment costs for international workers who do not meet the standard salary requirements.

Employers should assess whether their new entrants meet the updated eligibility criteria before offering salary reductions, as incorrect applications could result in visa refusals or compliance breaches.

Changes to the Electronic Travel Authorisation (ETA) Scheme

Introduction of visa requirement for Trinidad and Tobago Nationals

Effective from 12 March 2025, Trinidad and Tobago nationals are now required to apply for and obtain a Visit visa prior to visiting the UK. This change follows a significant increase in nationals of Trinidad and Tobago travelling to the UK for purposes not permitted under the Immigration Rules for Visitors, such as to live, work, or claim asylum in the UK. The introduction of the visa requirement includes a transition period for nationals of Trinidad and Tobago to travel to the UK without a visa, provided they hold a confirmed travel booking made prior to the introduction. This period will run until six weeks after the introduction date, ending on 23 April 2025.

Exemptions from the ETA Scheme

From 9 April 2025, British Nationals (Overseas) passport holders will be exempt from the need to apply for electronic travel authorisation. This means that all BN(O) passport holders will be exempt from requiring an ETA if intending to travel to, or transit via, the UK. This change is part of a broader effort to streamline the ETA process and ensure that it is applied consistently across different nationalities.

Implications for employers and applicants

Employers

These updates introduce significant challenges and responsibilities for employers under the Skilled Worker route. Employers, particularly in the care sector, must carefully review their recruitment processes to ensure compliance with the new hiring obligations. They must also take into account the updated salary thresholds when planning new hires. For care providers, the requirement to recruit from within England before hiring from overseas represents a fundamental shift in hiring strategy. Employers will need to work closely with regional partnerships to confirm recruitment efforts and ensure their processes align with the new regulations.

Applicants

Applicants should ensure that their salaries meet the revised minimum threshold and be aware of the new restrictions on deductions and qualification-based salary reductions. Those already in the UK looking for sponsorship should take advantage of the new priority hiring rules, ensuring they are proactive in seeking opportunities with employers who need to comply with the revised requirements.

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