April 2024 brought some significant changes to UK immigration rules, introduced with the intention to reduce net migration and prioritise the recruitment of British workers. 

We wrote about the full extent of the changes, here, but as a brief overview, the most major changes were:

  • An increase to the general salary threshold for Skilled Workers, meaning those looking to be sponsored on the route must now be paid at least £38,700 per year (up from £26,200) unless they can rely on a discounted rate or transitional thresholds.
  • An increase to the “going rates” for sponsored roles: alongside the general salary threshold, each specific role eligible for sponsorship is subject to a minimum salary, and a Skilled Worker must be paid the highest of the general salary threshold or the going rate for their role.  The going rates have increased from the 25th percentile to the 50th percentile, meaning a big salary jump for some roles.
  • Replacement of the Shortage Occupation List with the much shorter Immigration Salary List (“ISL”). Whereas previously a wide variety of roles were considered shortage occupations and subject to a 20% discount in going rates, the new ISL (although still allowing certain roles to benefit from a reduced salary threshold), is far more limited.
  • Those applying for Health and Care Worker visas cannot bring dependents to the UK with them. This includes spouses, partners and children. 

UK Visas and Immigration (“UKVI”) have now released its official migration statistics for Q2 (April to June), the first quarter in which Skilled Worker sponsors and visa applicants were operating under the new rules.   

What do the numbers say?

On the sponsor side, Q2 saw a 34% decrease in sponsor licence applications under the Skilled Worker route with 8,949 applications, down from 13,663, in Q1. This is the biggest decrease since Q2 2020, at the height of the Covid-19 pandemic.  

In terms of visa applications, there was a 33% reduction in leave to enter applications for sponsored work routes during Q2. However, for Skilled Worker visas specifically, applications between April and July were still 23% higher than last year, and although they did drop sharply in April and May, by July they had started to creep back up. Notably, there has been a significant drop in applications for care workers under Health and Care Worker visas, with an 81% decrease in applications between April and July this year compared to last year. So, it seems as though the applications for sponsored visas in general have remained quite stable, and the drop in applications could largely be in respect of Health and Care Worker visa applications. 

There have also been some meaningful spikes in revocations and suspensions in Q2.  There was a 137% increase in revocations of skilled worker sponsor licences and a 70% increase in suspensions.  The amount of compliance action has been growing higher each year, in line with UKVI’s increasing focus on sponsor compliance, and we would expect to see this stay at high levels in the months to come.

What trends can we see?

At the moment, it is too soon to tell. The marked drop in sponsor licence applications certainly suggests UK organisations have been more reticent to apply for sponsor licences in Q2, but this may be a temporary lull as organisations get to grips with the new requirements and plan accordingly.  Initial data suggests that Skilled Worker visa applications specifically remain on the increase, but it is early days and as businesses enter new financial years, they will have more of an idea of the amount they are willing to invest in offshore talent.  

Finally, it is clear that UKVI remains committed to increasing compliance action, with the upward trend we have seen in recent years being maintained.

What should sponsors be doing?

We have set out useful guidance on actions sponsor licence holders should take in light of the recent changes, found here.  Sponsor licence holders should also regularly audit their compliance practices and stay informed about any changes to their sponsor duties. 

This article was written by Katie Russell and Hayley Ainsworth