“New Entrants” and the UK Immigration Landscape

Is “new entrant” an option?

Since the beginning of 2024, there has been much discussion surrounding the upcoming changes to UK immigration rules and the higher salary threshold required to sponsor Skilled Workers, arising from announcements made by the Home Office at the end of 2023.

It is also important to highlight existing opportunities about which there has been little talk of change. Amongst those benefits is the approach to new entrants who can be paid a reduced salary for a maximum of four years. This flexibility can be a benefit for businesses seeking top talent and individuals launching careers in the UK. 

The modifications announced by the Home Office do not mention the position of new entrants. While it is impossible to provide any guarantees, it is expected that reduced salary thresholds will continue for this group.

Given the significant increases to the general minimum salary and the going rates, it is likely that the new entrant provisions will have more prominence and should not be forgotten as a crucial option to sponsor a certain cohort.

What is a new entrant?

A new entrant applicant is usually in the early stages of their career and, if they can meet defined criteria, can be paid a reduced salary for a maximum of four years.

Some corporate sponsors usually rely on the new entrant rules when hiring graduates to meet the salary threshold and may sometimes find that, where applicable, annual salary increments may result in their sponsored employees reaching the higher salary amount after four years through natural salary progression.

A Skilled Worker applicant can be a new entrant if they meet one of the below options:

1. Applicant is under the age of 26 on the date of application;
2. Applicant is sponsored for a postdoctoral position in certain, limited occupations;
3. Applicant is working towards a recognised professional qualification in a UK-regulated profession;
4. Applicant is working towards full registration or chartered status with a relevant professional body for the job for which they are sponsored;
5. Applicant is switching from Tier 1 (Graduate Entrepreneur);
6. Applicant’s most recent permission was under Tier 4 (General) or the Student route, and meets the conditions for switching;
7. Applicant’s most recent permission was under the Graduate route

Additionally, although those on a Graduate visa benefit from falling under the new entrant provisions, time spent on their Graduate visa may limit the length of time they can be sponsored.

As mentioned above, an applicant relying on the new entrant provisions can only be sponsored for four years under the new entrant threshold. This four-year period includes time spent on a Graduate/Tier 2/Skilled Worker visa. In practice, this means that when switching from a Graduate visa to the Skilled Worker route, if the applicant switches at the end of their two-year Graduate visa, they can only be sponsored for two years when relying on the new entrant provision.

They can, of course, look to extend, but at the point of extension, they will no longer be able to utilise the new entrant rates.

Act quickly

While no changes have been officially announced concerning new entrants, amendments are possible. Changes could include:

1. Increasing the new entrant Skilled Worker minimum salary amount. It is currently £20,960 GBP, and historically this figure is 80% of the experienced worker rate (under current rules, an applicant would need to be paid the higher of this figure and 70% of the going rate for their occupation code).
2. New entrant Eligibility. The Home Office may also expand or reduce the eligibility criteria for an applicant to be considered as a new entrant.

However, in the absence of express statements by the Home Office, it is impossible to provide certainty on the new entrant rules – meaning that businesses should act quickly to take advantage of the facility while it exists in its current form.

Need to know more?

Should you have questions related to changes in UK immigration rules, please contact Senior Manager Shanaz Haque at [email protected] and Trainee Solicitor Ali Ali at [email protected]. 

This blog was published on 5 February 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.