On 12 May 2025, the Labour government published its Immigration White Paper titled “Restoring Control over the Immigration System“. Aimed at reducing reliance on foreign labour, the proposals signal a major shift in the UK’s immigration strategy, one that will significantly affect employers across multiple sectors.
Key proposals affecting employers
Higher skill and salary thresholds
The Immigration White Paper proposes raising the skill level required for Skilled Worker visas from RQF Level 3 (A-level equivalent) to RQF Level 6 (degree level). This shift effectively excludes medium-skilled roles from visa eligibility, unless it is specifically recommended by the Migration Advisory Committee (MAC) and also deemed critical to the UK’s industrial strategy. Additionally, minimum salary thresholds for these visas are set to increase, making it harder for employers to sponsor overseas workers for certain positions.
Replacement of the immigration salary list
The existing Immigration Salary List will be abolished and replaced with a new Temporary Shortage List. This list will provide time limited access to work visas for occupations that do not meet the new RQF Level 6 threshold, focusing on sectors essential to the UK’s industrial strategy. Only sectors recommended by the MAC will be eligible, emphasising the government’s intent to prioritise domestic labour and upskilling.
Increased immigration skills charge
Employers sponsoring foreign workers will face a 32% increase in the Immigration Skills Charge (ISC). This marks the first adjustment to the ISC since its introduction in 2017, aligning it with inflation and further incentivising the employment of UK-based talent. This increase is expected to take effect during the 2025/26 financial year.
Sector specific changes
Healthcare
The Immigration White Paper proposes ending the ability for employers to recruit social care workers from abroad, with a transition period in place until 2028. This change could exacerbate staffing shortages in the already strained adult social care sector, requiring employers to increase domestic recruitment efforts and invest in training.
Hospitality and retail
The government have indicated that lower-wage sectors like hospitality and retail are unlikely to benefit from the new Temporary Shortage List. These sectors have historically relied on international labour, particularly in roles like chefs, kitchen staff, hotel workers, and retail assistants. These industries will likely face a sharp reduction in access to foreign workers.
Construction and manufacturing
The proposal to raise the minimum skill level could significantly impact these industries, which often do rely on medium skilled workers such as electricians, welders, carpenters and machine operators. Many of which roles were eligible under RQF Level 3. Employers may no longer be able to sponsor workers in these roles unless the occupation is specifically included in the new Temporary Shortage List. This could worsen existing labour shortages and increase costs if wages must be raised to meet higher thresholds.
Employer considerations and next steps
Workforce planning and training
Employers should evaluate their workforce strategy in light of the proposed restrictions, especially if they depend on medium-skilled international hires. Increasing domestic recruitment, partnering with training providers, and upskilling current staff will be critical. Employers specifically in the hospitality, social care, and construction sectors should evaluate contingency plans, and look at ways of increasing domestic recruitment. Upskilling current staff is especially relevant for sectors like hospitality and retail, where training existing staff to step into supervisory or managerial roles can offset gaps caused by reduced immigration.
Monitoring and understanding policy developments
As the White Paper outlines proposals rather than immediate legislative changes, employers should stay informed about the implementation timeline. Businesses should conduct also internal audits of their immigration compliance processes and prepare for changes such as increased scrutiny on visa sponsors, particularly in education and health sectors. HR teams should also be ready to explain immigration changes to affected staff, including those on Graduate visas or Skilled Worker routes nearing Indefinite Leave to Remain (ILR). This is particularly relevant given the extension of the ILR qualifying period from five to ten years.
The Immigration White Paper indicates a fundamental shift in the UK’s approach to immigration, focusing on reducing net migration and placing greater reliance on domestic labour. While aiming to address public concerns and economic objectives, these proposals present challenges for employers, particularly in sectors historically and largely dependent on international talent. Proactive planning, investment in domestic workforce development, and active engagement with policy developments will be essential for businesses navigating this evolving landscape.
