How Will the 2025 Immigration Changes Affect Businesses in the UK?

The 2025 Immigration White Paper

On 12 May 2025, the UK government published the Immigration White Paper, which detailed a number of significant proposed changes to the UK immigration rules.

A number of these pertain to UK work visas, with notable implications for UK businesses and foreign employees.

Some of these changes have already been put into effect, most notably changes to the Skilled Worker visa and the removal of care workers and senior workers from being eligible from the Health and Care Worker visa.

These changes are listed below, in addition to further changes that are due to come later this year that may also potentially affect businesses in the UK and how they operate.

What Changes Have Already Been Made?

On the 22nd of July 2025, the first batch of immigration changes came into effect, altering the eligibility and conditions for many UK work visas.

The changes that were made include the following:

• The minimum skill level for Skilled Worker visas was raised from RQF level 3 (equivalent to A-levels) to RQF level 6 (graduate level).
• Minimum salaries for work visas were increased:
  • Skilled Worker visa: from £38,700 to £41,700.
    • The minimum general salary threshold for all extension and change of employment applications for individuals who entered the Skilled Worker route after 4 April 2024 also increased to £41,700.
  • If the applicant has a PhD relevant to the job: from £34,830 to £37,500.
  • If the applicant has a PhD in a STEM subject, a role on the Immigration Salary List or is a new entrant into the job market: from £30,960 to £33,400.
  • If the applicant if on a transitional arrangement for those granted on the route prior to 4 April 2024 – minimum general threshold for those extending or making change of employment applications increasing from £29,000 to £31,300.
  • Senior or Specialist Worker and Expansion Worker visas: from £48,500 to £52,500.
• A new Temporary Shortage List was introduced with around 60 critical roles set at RQF level 3-5. Candidates on this route will not be able to bring dependents with them or benefit from visa fee discounts.
  • Additionally, these roles will be time-limited until the end of 2026 and will only remain if the Migration Advisory Committee (MAC) give their recommendation to do so.
  • The Immigration Salary List will still remain in place but be phased out by December 2026.
• Foreign care workers and senior care workers are no longer eligible to apply for the Health and Care Worker visa.

In addition to the above changes, going rates for jobs also increased at the same time the general salary increases were brought into place.

What Immigration Changes Have Been Announced But Are Yet to Come?

UK businesses should be aware of further changes laid out in the Immigration White Paper that are due to come into effect between 2025-2027. The following have now been formally announced with implementation dates:

• Raising the Immigration Skills Charge for businesses by 32% – scheduled to be effective on 16 December 2025
• Raising English language requirements from B1 to B2 for multiple UK work visas announced on 14 October, and expected to be effective from 8 January 2026
• Reducing the duration of the Graduate visa from 2 years to 18 months – set to be effective for new applicants from 1 January 2027.
• Extending the standard duration of time it takes for foreign workers to settle in the UK from 5 years to 10 years with an option for earlier settlement based on contribution. A consultation is ongoing and likely to conclude in 2025/26. The Home Office has stated they will be implemented by the end of this year.

What’s Next for UK Businesses?

The changes set out in the UK Immigration White Paper have tightened restrictions for foreign workers coming to the UK, raising the barrier for entry and making it more challenging for UK businesses to be able to fill roles with foreign talent.

Businesses should therefore be aware of necessary plans and strategies in place to accommodate for future changes, including assessing future hiring policies, allocating additional funds for increased salary thresholds and continuously reviewing current foreign employees to ensure compliance with new changes.

As more changes are due to come later this year, it is of great importance that UK businesses and organisations maintain an agile and responsive approach to official policy changes and shifts in immigration law.

How Can IAS Help Your Business?

It’s never been more important to be aware of how UK immigration can affect the way your business or organisation operates.

If you’re on the lookout for comprehensive, knowledgeable legal support for your business, IAS can help.

We offer expert corporate immigration advice for UK businesses. From advising on the best way to hire new foreign workers, how to keep on top of sponsor license compliance or helping to run legal audits on your management systems, our corporate experts can advise and assist with any aspect of corporate immigration.

We also offer a range of support services for your employees and management staff, including training sessions on how to navigate the legal complexities of overseas employment and how best to approach Home Office regulations to ensure company-wide compliance.

Our corporate immigration advisers are standing by now to advise you and your business. For more information on the services we offer and how we can help, call us on +44 (0)333 414 9244 or reach out to us online.