The Immigration White Paper
What it means, why it’s happening, who it’ll impact and when it’ll take effect
During the Covid-19 pandemic, government business policy was constantly and rapidly changing. From not knowing what support was on offer, to uncertainty about what various rules actually meant, even the most clued-in entrepreneurs told us they were struggling to keep up. For that reason, we launched our Policy Updates newsletter – which aimed to provide information to entrepreneurs about what the latest developments coming out of Whitehall meant for them.
While the pandemic is now thankfully a distant memory, we think there’s still value in formally communicating to our network about what’s going on in the policy world – and to that end, we’re firing up our Policy Updates once again. We’ll only send these when we think there is a timely, relevant update that impacts a majority of entrepreneurs in our network. Alongside the team at The Entrepreneurs Network, we will work with trusted experts – lawyers, accountants, academics, economists, consultants – on these updates. If you’re an expert and would like to be considered for inclusion, please drop us an email.
Today’s Policy Update is about the changes proposed by the Immigration White Paper, which was unveiled last week. We know that many startups critically rely on international talent – from the staff they employ, to the people who found them, and the investors who back them. We’ve partnered with the law firm Kingsley Napley on this one – find out more about them at the bottom of the Policy Update.
Before we jump into the Policy Update, a couple of things to flag that are relevant to this issue:
We’ve launched a survey that seeks the opinions of real entrepreneurs, and one of the questions asks how important immigration is to the startup ecosystem. If you’d like to make your voice heard, click here to fill it out;
On 10 June we’re partnering with our friends at Oasis – a hub for international founders and investors in London – to host a networking meetup. Come along for an evening of drinks, conversation and community building – RSVP here.
(Source Unsplash)
The Immigration White Paper: what it means, why it’s happening, who it’ll impact and when it’ll take effect
What is happening?
The Government has published its long-awaited Immigration White Paper, which proposes significant changes to the immigration system. While these changes have not yet come into effect, they signal the Government’s future direction.
Why is this happening?
The White Paper is part of the Government’s plan to reduce net migration, incentivise investment in the domestic workforce, and ensure the immigration system supports key sectors aligned with the UK’s Industrial Strategy.
What are the key proposed changes?
The White Paper proposes a number of changes, including:
Raising the required skill level (from RQF Level 3 to 6) and salary thresholds for Skilled Worker visas;
Increasing the Immigration Skills Charge by 32%;
Introducing a new Temporary Shortage List for lower-skilled roles which have long-term shortages, and where sponsors will be required to follow strategies in relation to training and engaging with the domestic workforce;
Increasing the English language requirements;
Extending the route to settlement by raising the usual qualifying period for settlement from five to ten years (importantly, it is currently uncertain whether the changes will apply to existing international workers already in the UK. Meeting newly proposed ‘earned’ settlement and citizenship points-based criteria will also shorten the qualifying period based on contributions to the economy and society);
Reducing the duration of the Graduate visa to 18 months;
Changing the Global Talent, High Potential Individual and Innovator Founder visa categories (among others) in an effort to increase the number of entrepreneurs and highly skilled talent arriving on dedicated routes.
Who will these changes impact?
Startups and scaleups using the Skilled Worker route to hire international talent;
Overseas workers already in the UK, including those on a track to settlement;
International students and recent graduates of both British and top overseas universities;
Employers relying on sponsoring lower-skilled (RQF Level 3-5) overseas workers;
Sponsors hiring care workers and hospitality staff;
Dependants of sponsored workers, especially where English is not their first language.
When will the changes take effect?
The White Paper does not change the law yet – changes will be phased in throughout 2025 and 2026;
Some new rules can be expected in the coming weeks, partly because the Home Office may seek to limit a rush of applications before the increase in Skilled Worker thresholds;
Employers can still sponsor roles under current rules and should therefore accelerate applications, including where there is current eligibility for settlement or citizenship;
Closure of new overseas care visa applications will begin later this year, with a transition period until 2028;
Settlement changes are pending consultation and are expected to be rolled out in stages.
What next?
Further details on the changes are expected in the coming weeks and months. Aside from the White Paper, the UK is reportedly also closing in on a new Youth Mobility Scheme with the EU – which would enable young people freedom of movement to live and work in the UK.
Kingsley Napley’s immigration team is sending regular email alerts as soon as more information is obtained. If you would like to receive Kingsley Napley’s alerts, please sign up to their immigration mailing list here.
Disclaimer: This Policy Update is intended for informational purposes only and does not constitute legal advice. For the most accurate and up-to-date information, please contact Kingsley Napley for more.
Very informative, thank you!