Impact of the Home Secretary’s Spring 2024 Immigration Plan on the UK Space Sector

The space industry in the United Kingdom is experiencing robust growth. In 2023, the sector witnessed significant expansion, marked by augmented investments, the entry of new participants, and heightened activities. Consequently, the sector's contribution has surged by £1 billion, further boosting its already substantial annual contribution of £17.5 billion to the UK economy.

However, this significant growth and the global race to deliver new and improved technology and services bring unique challenges, too – as job opportunities and service offerings expand, the sector must continue to innovate and bridge skills gaps to foster this continued innovation and propel the UK's presence in the space industry.

The latest Space Sector Skills Survey (2023) shows the rapid growth of employment in the sector. There are almost an additional 1,800 available jobs, and success in the sector has outpaced the employees available.

Demand has been particularly high for mid-level roles and while the UK Space Agency sets out a plan to provide a skilled, diverse and sustainable workforce for the country’s sector now and in the future, in December 2023, the Home Secretary unveiled an ambitious five-point plan aimed at reducing net migration, which will undoubtedly impact recruitment for mid-level roles.

The changes are expected on 4 April 2024 and will likely have widespread consequences across all sectors, including the space industry.

The Home Secretary’s new immigration plan

The proposed salary changes for individuals relocating to the UK for work under the Skilled Worker route will undoubtedly impact the space sector.

As a result, the sector must consider how to overcome potential challenges in acquiring top-tier and mid-level talent. The two key measures that will impact Skilled Workers are:  

• • increasing the current ‘general salary threshold’ of the Skilled Worker immigration category from £26,200 to £38,700 and increasing the going rate to the median; and
  • reforming the Shortage Occupation List (SOL) by removing the 20% discount to the ‘going rate’ minimum salary for SOL roles and introducing a new condensed Immigration Salary List (ISL).

Beginning on 4 April 2024, several of the common Standard Occupational Codes (SOC) for the space industry are expected to be subject to a substantial increase and, as a result, some applicants may not meet the new higher salary thresholds.

In addition, The Migration Advisory Committee (MAC) has also recommended that some of the SOC codes on the current Shortage Occupation List, which are used by the space industry, be removed from the new Immigration Salary List. If these recommendations are adopted by the government, the current 20% discount to the ‘going rate’ minimum salary will no longer be available to employers.

Space sector impact

There are skills gaps in the current workforce, with 72% of gaps being in software and data, 51% in commercial operations, 43% in electronic design and 39% in systems engineering.

It is also anticipated that these skills gaps will only increase. From 2026 onwards, it is expected that there will be an 81% gap in software and data, 58% in commercial operations, 70% in electronic design and 59% in systems engineering.

The Space Sector Skills Survey indicates that the most difficult areas for which to recruit are electronics, systems engineering and spacecraft operations. Of these, this is the most challenging area because demand is not only high, but it is also very difficult to recruit. The sector must work to bridge these skills gaps to be able to continue to grow, level up the UK’s space economy and deliver the National Space Strategy.

The Skilled Worker route is used to fill permanent or long-term roles. Currently, sponsors wishing to hire employees in roles must match the position with one of the job codes under the Skilled Worker route, and the gross annual salaries for these roles must be able to satisfy both the general salary threshold requirement of the Skilled Worker route and the ‘going rate’ as per the job code selected.

With the Skilled Worker general salary threshold being increased from £26,200 to £38,700 per year for a 37.5-hour working week and the ‘going rate’ increasing to the median, as well as the Migration Advisory Committee recommendations to remove some of the current shortage occupation roles which are used by the space sector, such as SOCs 2122 (Mechanical engineers), 2123 (Electrical engineers), 2124 (Electronics engineers), 2135 (IT business analysts, architects, and systems designers and 2136 (Programmers and software development professionals) off the new Immigration Salary List.

This means that jobs such as those in software design and development, electronics technicians and engineering technicians for space programs may not meet the new salary requirements, and prospective employers may not be able to offer overseas workers sponsorship. The salary increases will have a disproportionate impact outside of London and across the regions, so the current skills gap we see in the sector may widen further unless they can be addressed.

However, despite the potential hurdles that the sector could face in this visa route, the UK immigration system offers alternative pathways that can be considered, ensuring the sector continues to harness international talent as part of its space strategy.

Visa pathways to enable sector growth

Several alternative unsponsored routes are available to attract overseas talent into the sector. Routes such as those below could be particularly attractive for roles where the Skilled Worker salary thresholds cannot be met.

• UK Graduate visa – permits work in the UK in any role, for any employer and without salary thresholds for two years after a UK degree course or three years after a PhD.
• High Potential Individual visa – a route open to those who have ‘graduated from a top global university’ to stay in the UK for two years and work in any role.
• Youth Mobility visa – a route that was expanded to new categories of applicants in January 2024.
• Global Talent visa – a flexible route aimed at individuals who can show that they have exceptional talent or promise and have been recognised as (or have the potential to become) a global leader in certain fields, including science, engineering, and digital technology.

Fragomen’s Attracting Talent to the Space Sector: Navigating the UK Immigration System, 2024 guide explores these routes, amongst others, in more detail.

Short-term pathways

There are also short-term alternative options available to those in the space industry where there is no salary threshold requirement. For example, under the visitor route, general business activities can be conducted such as attending meetings, consulting, troubleshooting, repairing, or advising on machinery, equipment or software.

However, this is not an alternative to a work visa – individuals entering as Business Visitors are not able to undertake substantive or productive work in the UK. A Business Visitor visa will be valid for six months and during this time, if frequent visits are required, this may raise questions as to the visitors’ intentions in the UK. To avoid any issues and risks, a work visa or the alternative options mentioned above should be considered.

The Temporary Worker Government Authorised Exchange (GAE) route allows individuals to come to the UK for a temporary period on an approved internship-style scheme. The GAE route can be used to sponsor individuals to undertake an internship or work experience within a UK company.

The role must be skilled to RQF Level 3 or above, must be supernumerary (not fill a permanent position) and is usually limited to 12 months in duration. The UK company will require a GAE sponsor to act as an ‘overarching body’ to sponsor the intern on behalf of the company, and the GAE sponsor’s specific scheme’s requirements must also be met.

Fragomen is an approved GAE sponsor under the sub-category ‘work experience’ and can sponsor supernumerary internships which last up to 12 months, on behalf of space businesses. Shortly before the 12-month visa expiry, if the worker is required for a permanent role, they can consider switching to the Skilled Worker route.

Looking ahead

The changes expected in April 2024 will reduce net migration figures. The introduction of more stringent immigration rules for the Skilled Worker route with the higher salary thresholds, plus the uncertainty around the Immigration Salary List means the space sector, particularly in the regions outside of London, stands to be disproportionately impacted.

To ensure readiness, those within the sector who are responsible for staffing should start assessing their current and future recruitment needs and identify vacancies that may be affected by these prospective changes.

Where possible, businesses should look to submit visa applications before April to get ahead of the upcoming changes or consider alternative visa routes. Careful planning will ensure that the UK space industry can attract and retain ‘top tier’ talent and help to drive forward the UK space journey and economy.

Need to know more?

For more information or questions on navigating the UK immigration system and the space sector, please contact Senior Manager Laxmi Limbani at [email protected] or Fragomen’s Space Industry Team.

This blog was published on 7 March 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.