United Kingdom: New Statement of Changes Further Restricts Immigration through Increased Salary Requirements, Among Other Restrictions

CHANGE

IMPACT

Increased minimum general salary threshold and ‘going rates’ for Skilled Worker Route, effective April 4, 2024.

·       The minimum general salary threshold for the Skilled Worker Route will increase to GBP 38,700, up from GBP 26,200.

·       ‘Going rates’ (which are based on the median earnings of the specific occupation) will also be calculated having regard to median level of earnings across occupations based on official data rather than as before the 25^th percentile of earnings.

·       Sponsoring employers must pay Skilled Workers at least the general salary threshold or the ‘going rate’ for the individual occupation, whichever is higher.

·       Exceptions to the new rule will apply to:

o   Individuals submitting applications prior to April 4, 2024 who held a Skilled Worker permit prior, and who have maintained continuous permission to reside in the United Kingdom since that time, with limited exceptions (who will be subject to previous thresholds); and

o   Individuals who hold a PhD, an undergraduate degree in a STEM field, new entrants (who are generally individuals early in their career and who meet other eligibility requirements), or individuals on the new Immigration Salary List (ISL) who (will continue to benefit from salary discounts).

·       Further, individuals whose role was on the Shortage Occupation List but not on the new ISL can continue to rely on the lower ISL threshold if they are sponsored for a role which was eligible under the applicable rules at that time; and they are being sponsored to continue working in the same job for the same sponsor. This does not apply if these individuals are switching sponsors.

·       Higher minimum general salary thresholds and ‘going rates’ for the Skilled Worker Route will make it more expensive for employers to hire foreign workers for these roles unless they qualify for one of the limited exceptions.

·       This is likely to reduce the number of foreign nationals that an employer can sponsor and could potentially result in positions going unfilled in the labor market.

Abolishment of Shortage Occupation List and replacement with ISL, effective April 11, 2024. 

·       The new ISL will replace the previous Shortage Occupation List; the positions on the ISL are intended to be those which the government believes it makes sense to lower the minimum salary threshold in order to fill labor gaps, rather than being a list of all occupations experiencing labor shortages.

·       Currently, 23 occupations are included (with 20 occupations being UK-wide and three being specific to Scotland. All 20 UK-wide occupations were recommended by the Migration Advisory Committee). Some of these occupations are: biological and chemical scientists; social and humanities scientists, care workers and home carers, laboratory and pharmaceutical technicians, among others.

·       The ISL will allow for individuals in these occupations to meet a general salary threshold that is 20% less than the general salary threshold.

·       The ISL is a much more restrictive list than its predecessor, the Shortage Occupation List, which will result in fewer employers being able to take advantage of the lower salary threshold. As a result, employers will have to pay more money to hire a foreign national for occupations that no longer qualify for a discount.

Supplementary work definition broadened, effective April 4, 2024. The changes also broaden the work a sponsored worker can do outside sponsored work ('supplementary work') to encompass all occupations eligible for the route.

·       The current rule allows supplementary work where it is in addition to the job the sponsored worker is doing and does not exceed 20 hours a week and is outside their contracted working hours, if either:

o   It is Shortage Occupation List role; or

o   It is in the same profession and at the same professional level, as the sponsored work.

·       The concept of ‘Supplementary Employment’ applies to: Skilled Workers, Senior or Specialist Workers, Ministers of Religion, International Sportspersons, Domestic Workers who are Victims of Modern Slavery, Creative Workers, Religious Workers, International Agreement Workers, and Government Authorised Exchange Workers.

·       With the changes, Skilled Workers specifically can perform any role in ‘Appendix Skilled Occupations’. It must still be in addition to the role, outside of the contracted hours and no more than 20 hours per week.

·       Those seeking to work beyond these restrictions would need to take Secondary Employment (a second sponsorship).

·       This change will give sponsored workers greater flexibility to engage in activities beyond that which they are sponsored for.

·       This change will free a Skilled Worker to be self-employed and start their own business as there is no longer a requirement that the supplementary work is the same profession and professional level as the job for which they are being sponsored. Someone sponsored in a financial services sector role, for example, can start a tech business on the side, provided they are working outside of their sponsored work hours.

Increased Family Route income requirements, effective April 11, 2024.

·       The government will increase the minimum income requirement to GBP 29,000 per year for individuals in the five-year partner (which allows their partner to obtain settled status within five years) and child Family Routes. Previously, the minimum income requirement was GBP 18,600 per year.

·       However, there will no longer be an additional financial requirement for children who are entering; previously, there was a minimum salary requirement which assumed only the partner was entering, with additional fees for each additional child.

·       There are some exceptions to this minimum income requirement for certain exigent circumstances, such as if there are insurmountable obstacles to family life with partner continuing to live outside the United Kingdom; or if it would not be reasonable for their child to leave the United Kingdom, among limited other exceptions. These individuals will face a longer route to settlement in the United Kingdom.

·       Additionally, a transitional provision has been put in place for those who, before April 11, 2024, already had one of the above-listed types of Family visas or for those who applied for this status prior to April 11, 2024. These individuals will not be subject to the increased minimum income requirement.

·       The increased requirements are expected to make it more difficult for certain family members to reside in the United Kingdom with their sponsoring partner or parent.

·       This could potentially dissuade certain foreign nationals from seeking to work in the United Kingdom.

·       However, individuals who were expected to apply for these Family Visas may want to take advantage of the lower income requirements that are currently in place for applications submitted before April 11, 2024.