Navigating the 2024–25 UK Immigration Law Changes

Navigating the 2024–25 UK Immigration Law Changes: What Employers Need to Know

The UK’s immigration landscape is shifting once again — and this time, employers are squarely in the spotlight.
From rising salary thresholds to tighter sponsorship rules, the latest changes to immigration law are reshaping how organisations attract and retain overseas talent.

As an HR consultancy, we’ve been helping businesses adapt to these developments in real time. In this blog, we’ll break down what’s changing, how it impacts your hiring and compliance, and what you can do to stay ahead.

1. The Big Picture: Why Immigration Rules Are Changing

The government’s goal is clear: reduce net migration while prioritising higher-skilled roles.
This means employers who rely on international recruitment — particularly in care, hospitality, and lower-skilled sectors — are facing new barriers.

Several major updates took effect in 2024 and 2025, with more due to roll out through 2026–27. Together, they increase both the cost and complexity of employing overseas workers.

Key drivers behind the reforms include:

• Reducing reliance on lower-skilled migration

• Aligning sponsored roles with higher qualification levels (RQF 6 and above)

• Increasing minimum salary thresholds

• Tightening dependants’ rights for some roles

• Strengthening employer sanctions for non-compliance

2. Skilled Worker Visa: Higher Bar, Fewer Eligible Roles

One of the most significant changes came in July 2025, when the Skilled Worker route was restructured.
Here’s what changed:

• Skills threshold raised: Only jobs at RQF 6 (degree-level) or above now qualify. Many supervisory and technical roles (previously eligible at RQF 3–5) are excluded.

• Salary threshold increased: The general minimum rose to £41,700, with some occupations requiring even higher pay.

• Care worker recruitment limited: Overseas recruitment for new care workers (SOC 6135/6136) was closed, except under transitional provisions.

• Dependants restricted: Certain roles at RQF 3–5 that remain temporarily eligible now exclude dependants.

What this means for employers

If you’ve previously sponsored workers in mid-level or care-related roles, your pipeline will likely shrink. The new salary and skill rules also mean sponsorship may no longer be financially viable for some positions.

What we recommend

• Audit your sponsorship list: Check which roles still meet RQF 6 and salary criteria.

• Review your pay structures: Salary reviews may be necessary to retain eligibility.

• Plan ahead: If you expect to need overseas talent, apply for Certificates of Sponsorship (CoS) early — delays are common when rules change.

3. Employer Sanctions: Penalties Have Tripled

Compliance is now more than a checkbox — it’s a risk area.
From 2025, fines for employing someone without the legal right to work have tripled:

• Up to £45,000 per illegal worker for a first offence

• Up to £60,000 for repeat breaches

With digital checks and the right-to-work process evolving, even small administrative errors can have serious consequences.

What we recommend

• Re-train HR teams: Ensure your staff understand the latest Home Office verification steps.

• Use digital checks where possible: The new IDVT system can simplify right-to-work for remote hires.

• Keep records in order: Regular audits and spot checks can prevent costly mistakes.

• Renew your sponsor licence on time: Expired or suspended licences disrupt recruitment pipelines immediately.

4. Rising Visa and Sponsorship Costs

Fees have risen across the board since April 2025. A few examples:

Application

Old Fee

New Fee (2025)

Skilled Worker visa

£719–£1,420

£826–£1,635

Indefinite Leave to Remain (ILR)

£2,885

£3,029

Naturalisation

£1,500

£1,605

Immigration Health Surcharge (IHS)

£624/year

£1,035/year

Combined with higher salary thresholds, these increases make hiring from overseas significantly more expensive.
Employers must now weigh recruitment costs more carefully — particularly for shorter-term contracts or roles with high turnover.

What we recommend

• Budget early for immigration-related costs, including licence renewals, CoS allocations, visa fees, and the Immigration Skills Charge.

• Be transparent with candidates about sponsorship costs and timelines.

• Explore alternative routes such as the Global Talent, Scale-Up, or Graduate routes for eligible candidates.

5. Compliance and Licence Management: More Scrutiny, Less Leniency

The Home Office has increased spot audits and sponsor compliance visits, focusing on smaller employers and those in high-risk sectors.
Under the new “Part Suitability” section of the Immigration Rules, breaches (even minor administrative ones) can trigger suspensions or licence downgrades.

Common issues we see include:

• Inconsistent job titles or SOC codes

• Missing evidence of genuine vacancy testing

• Outdated contact details for Authorising Officers

• Poor record-keeping of right-to-work checks

What we recommend

• Conduct internal compliance audits annually.

• Keep your Sponsor Management System (SMS) up to date — including contact information, role changes, and employment end dates.

• Appoint a trained Authorising Officer and ensure you have at least one Level 1 user who understands the SMS fully.

• Document everything: Home Office visits often focus on audit trails.

6. Shorter Graduate Route and Labour Market Tightness

While most of the rule changes focus on skilled migration, the Graduate route has also been shortened — from two years to 18 months for new applicants from January 2027.

For employers, this means less time to sponsor international graduates before their visa expires. Competition for eligible candidates will increase, particularly in high-demand sectors such as tech, finance, and engineering.

What we recommend

• Engage early with graduates — don’t wait until they finish their studies.

• Offer sponsorship clarity upfront — graduates value employers who understand visa processes.

• Consider graduate-to-skilled transitions as part of your workforce planning.

7. What Employers Should Be Doing Now

Here’s a quick checklist to help your organisation prepare:

Review your sponsor licence — check renewal dates, compliance records, and key personnel.

Map affected roles — identify positions that fall below RQF 6 or new salary thresholds.

Update your pay scales — adjust offers or internal bands where sponsorship eligibility is at risk.

Train your HR and recruitment teams — ensure they understand right-to-work, sponsorship duties, and documentation standards.

Communicate with employees — let existing sponsored workers know how changes might affect extensions or settlement plans.

Budget for 2025–26 fees — include visa costs, CoS, and the Immigration Skills Charge in your annual planning.

Seek advice early — transitional windows are closing quickly and acting before new thresholds take effect can save time and money.

8. Final Thoughts: Adapt Early, Stay Compliant

The pace of immigration reform shows no sign of slowing.
For employers, success in 2025 and beyond will depend on strategic planning, robust compliance, and proactive communication with both staff and candidates.

We’re helping clients navigate this new terrain — from licence audits to sponsorship training and workforce planning.
If your business relies on international talent, now is the time to review your systems, adjust your strategies, and ensure your compliance foundations are solid.

Change can be challenging — but with preparation and the right support, it doesn’t have to be disruptive.