On 22 July 2025, the first set of reforms from the UK Immigration White Paper came into force, marking the beginning of a phased overhaul of the UK immigration system. These reforms are intended to reduce net migration and place greater emphasis on the domestic workforce. While some measures are now active, others are scheduled for later in the year, and several remain without a confirmed implementation date.
Changes implemented on 22 July 2025
The Skilled Worker route has undergone a fundamental shift. The skills threshold has increased from RQF Level 3, covering A-level equivalent roles, to RQF Level 6, meaning only graduate-level positions now qualify for sponsorship. This change significantly reduces the number of eligible roles, with around 180 occupations removed from the sponsorship system. Transitional arrangements allow current visa holders in roles below RQF 6 to renew their visas, change employers, and undertake supplementary work, though these concessions will not be indefinite.
Certain critical roles that fall below RQF Level 6 will continue to be permitted, but only on a temporary basis until the end of 2026. These roles are managed through the Immigration Salary List, which currently retains its existing entries alongside some medium-skilled shortage occupations identified by the Migration Advisory Committee, and the new Temporary Shortage List, which is restricted to positions deemed vital to the UK’s industrial strategy or critical infrastructure. Workers sponsored under the Temporary Shortage List face restrictions, including a ban on bringing dependants in and the loss of salary or visa fee discounts.
Minimum salary thresholds have also increased.
- For Skilled Workers, the general threshold has risen from £38,700 to £41,700, or £17.13 per hour, unless the role’s going rate is higher.
- A discounted rate of £33,400 applies in limited circumstances, such as for new entrants, STEM PhD holders, or those filling shortage roles.
Other routes have also been affected.
- The Global Business Mobility route for senior or specialist workers now requires £52,500.
- The Graduate Trainee route £27,300, and the Scale-up route £39,100.
The care sector is facing some of the most immediate impacts. On 22 July, new overseas applications for carers and senior carers closed. Transitional arrangements, due to run until July 2028, will allow those already in the UK to extend or switch visas if they have been working for their sponsoring provider for at least three months before their Certificate of Sponsorship was issued. However, the Government has reserved the right to end this concession earlier. To prevent loopholes, the Home Office has clarified that the category of “nursing auxiliaries and assistants” applies only in settings where registered nurse roles exist.
Measures expected later this year
Not all changes have been introduced immediately. Several important measures are due to be introduced before the end of 2025. The Immigration Skills Charge will rise by 32 percent, adding further cost pressures on employers. English language requirements will also be raised across multiple immigration routes, and for the first time, will be extended to adult dependent relatives. A new framework for family migration is also expected to be announced later this year.
The accompanying Ministerial Statement made clear that the Government will not hesitate to impose further restrictions if evidence of abuse or exploitation emerges in particular sectors. Employers in the health, social care and education sectors should therefore anticipate greater scrutiny of sponsorship compliance as part of this broader tightening.
Proposals without a confirmed timeline
The White Paper also flagged a number of longer-term measures that currently have no confirmed implementation date.
These include the eventual phasing out of the Immigration Salary List, meaning that reliance on shortage roles as a pathway to sponsorship will become increasingly limited. This is expected to end no later than 31 December 2026.
Ministers have also indicated that the wider reforms form part of a broader programme of immigration and border security measures, with further announcements expected on asylum and border controls in due course.
Implications for employers
These reforms represent a decisive shift in UK immigration policy, combining higher salary thresholds, narrower eligibility, and stricter visa conditions. For many employers, particularly in the hospitality, retail, construction, and social care sectors, the impact will be substantial. With fewer opportunities to recruit internationally at medium skill levels, employers will need to focus on developing domestic recruitment pipelines, investing in apprenticeships, and upskilling their existing workforce.
It is essential for employers to audit their current sponsored workforce to assess whether employees will continue to qualify under the new rules. Where they do not, options such as salary adjustments or alternative visa routes will need to be considered. Recruitment strategies also require careful review, particularly where offers have been made for roles that will no longer qualify under the Skilled Worker route. The financial implications of increased salary thresholds and government charges will need to be factored into forward planning, alongside the extended sponsorship commitments created by the ten-year route to settlement. Employers should also remain alert to potential employment law risks, such as claims for unfair dismissal or indirect discrimination if sponsored workers are unable to extend their visas.
Clear communication with existing and prospective employees will also be essential. Employers should ensure HR teams can explain the new restrictions, particularly around the inability of some workers to bring dependants or settle long-term in the UK. With the qualifying period for Indefinite Leave to Remain already extended from five to ten years, sponsorship obligations are likely to become a longer-term financial and administrative commitment.
Conclusion
The July 2025 reforms are only the first phase of a wider programme of immigration change in the UK. While the Government’s strategy is focused on reducing net migration and increasing reliance on the resident workforce, the immediate effect for many employers will be rising costs, reduced flexibility, and an increased need for careful workforce planning.
Businesses should take proactive steps now to review their recruitment strategies, model financial impacts, and prepare staff for what is due to be an increasingly complex and restrictive immigration landscape.
Get in touch with our Employment Law solicitors to discuss the UK Immigration White Paper.
Find out more about the changes – Changes to UK visa and settlement rules after the 2025 immigration white paper
