New Home Office Reforms Announced on Skilled Worker Visa

This week, major changes were announced by the Home Office marking the start of a “complete reset” to the UK immigration system.

On Monday, the Government published a Statement of Changes (HC 997) set to be implemented from the 22 July 2025 once Parliamentary approval has been obtained. These changes mostly affect the Skilled Worker route, significantly increasing the salary and skills threshold as well as eliminating around 180 occupations from the list of eligible roles under the Skilled Worker route.

The main changes are as follows.

1. Salary threshold

The general salary threshold to qualify for a Skilled Worker Visa will increase from £38,700 to £41,700 per annum in line with the 2024 Annual Survey of Hours and Earnings data. Occupations which benefit from lower salary thresholds have also increased at a similar rate. Transitional arrangements will be in place in relation to existing skilled workers and applicants.

2. Skills threshold

New applicants for Skilled Worker Visas will now require a bachelor’s degree or equivalent to RQF Level 6 Qualification resulting in around 180 occupations due to become ineligible from qualifying for sponsorship.

3. Temporary Shortage List (TSL)

Interim measures have now been announced which aim to phase out the current Immigration Salary List in place to the Temporary Shortage List. In the new TSL, some 60 occupations are listed which include jobs that are below graduate level. The main difference between the two lists is that under the new system, sponsors will have time-limited immigration access to hire overseas workers for sub-degree level roles.

Although the Immigration Salary List has yet to be completely scrapped, these new interim measures mark the start of the transition to the TSL.

4. Social Care Worker route abolished

Overseas recruitment of care workers will no longer be permitted from 22 July 2025 in line with the plans announced in the Government’s May Immigration White Paper. Workers who are already sponsored in the sector will be able to continue to extend their stay, change sponsors and apply to settle until July 2028. Transitional arrangements are expected for such workers. However, employers seeking to hire new overseas care workers have until 22 July 2025 to do so.

What’s next?

Many anticipated reforms following the Government’s Immigration White Paper published in May 2025 were not included in this week’s Statement of Changes, notably the 32% increase in the immigration skills charge for sponsors and the English language requirements uplift. However, the announcement did set out the Government’s aim to begin implementing these further changes by the end of this year.

In light of the above reforms, employers should begin reviewing any current overseas hiring strategies, assessing whether they comply with these new changes.

If you are an employer who hires overseas worker and are unsure about how these changes may affect your business, please contact a member of our team and we’d be happy to arrange a chat. We can help you comply with the upcoming changes announced in this week’s Statement of Changes and help you navigate this ever-changing area of law.