The United Kingdom’s (“UK”) government has published a White Paper on May 13th 2025 proposing significant reforms to the immigration system. These changes aim to tighten visa rules, safeguard border security, reduce migration levels, and link immigration policy with skills and training. These reforms aim to create a fairer, more controlled immigration system that supports economic growth, protects public services, and fosters community cohesion.

A. The key policy changes proposed in the White Paper:

1. Immigration Skills Charge (ISC)

The ISC will increase by 32%, rising from £364 to about £480 per year for small sponsors or charities, and from £1,000 to around £1,320 per year for large sponsors. Employers cannot pass this cost to visa applicants.

2. Skilled Worker Skill Level

The minimum skill level for qualifying sponsored jobs will increase from RQF level 3 (A-level equivalent) to RQF level 6 (graduate level), reducing the number of eligible occupations by around 180. Existing Skilled Workers in currently eligible occupations below graduate level can renew their visas, but new applicants must meet the new requirements, as notified.

3. Skilled Worker Salary Thresholds

Salary thresholds for Skilled Workers will rise, though specific details are yet to be provided.

4. Graduate Visas

The post-study work visa period will be reduced from two years to 18 months, giving graduates less time to qualify for Skilled Worker sponsorship.

5. Settlement (Indefinite Leave to Remain)

The qualifying period for settlement will double from five years to 10 years for Skilled Workers and other applicants under the points-based system. Non-UK dependants of British citizens who comply with the rules are exempt from this change. There may be opportunities to reduce the qualifying period based on contributions to the UK economy and society.

7. English Language Requirements

The minimum English language requirement for Skilled Workers will rise from B1 to B2 (independent user level). New English language requirements for adult dependants will start at A1 (basic user level) and progress to B2 for settlement.

8. Temporary Shortage List (TSL)

The TSL will replace the Immigration Salary List for shortage occupations, focusing on jobs below degree level (RQF 3-5) that are key to the UK's industrial strategy or critical infrastructure. Employers must have a workforce strategy to maximize the use of the UK workforce.

10. Workforce Strategies

Key sectors with high levels of overseas recruitment must develop workforce strategies to boost domestic training and participation. The Labour Market Evidence Group (LME Group) will inform on the state of the labor market and necessary policies.

11. Social Care Visas

The care worker visa route will close to overseas applicants, with a transition period until 2028 for those already in the UK.

12. Race for Global Talent

Simplifying the Global Talent route, reviewing the Innovator Founder route, and expanding the High Potential Individual route are proposed to attract investment and talent to the UK.

B. Impact on Indian Employees and Business Professionals

Longer Settlement Periods

  • Extended Settlement Time: Indian employees moving to the UK will now need to spend a decade in the country before applying for settlement, unless they can demonstrate significant contributions to the economy and society. This means a longer period of temporary immigration status, which could affect long-term planning and stability.
  • Increased Costs: Employers will face higher costs to support their employees through to permanent residency, potentially doubling the expenses related to visa sponsorship and immigration support.

Higher English Proficiency Requirements

  • Stricter Language Tests: The new policy mandates higher English language requirements (B2 level) for Skilled Workers and their adult dependents. Indian professionals must ensure their language skills meet these new standards to integrate effectively and avoid exploitation.
  • Progression Over Time: Dependents will need to show progression in their English proficiency over time, starting from A1 (basic user level) and moving to B2 (independent user level) for settlement.

Changes to Skilled Worker Visas

  • Higher Skill Thresholds: The minimum skill level for qualifying sponsored jobs will increase from RQF level 3 (A-level equivalent) to RQF level 6 (graduate level). This will reduce the number of eligible occupations, making it more challenging for lower-skilled workers to qualify for visas.
  • Salary Thresholds: Salary thresholds for Skilled Workers will rise, although specific details are yet to be provided. Indian professionals will need to ensure their salaries meet these new thresholds to qualify for sponsorship.

Graduate Visas

  • Reduced Post-Study Work Period: The post-study work visa period will be reduced from two years to 18 months. Indian graduates will have less time to secure employment that qualifies for Skilled Worker sponsorship, requiring quicker career progression and salary increases.

Temporary Shortage List (TSL)

  • Limited Access for Lower-Skilled Jobs: The TSL will replace the Immigration Salary List for shortage occupations, focusing on jobs below degree level (RQF 3-5) that are key to the UK's industrial strategy or critical infrastructure. This will limit opportunities for lower-skilled Indian workers to access the immigration system.

Concluding Remarks:

The UK government's new immigration reforms represent a significant shift in policy, aiming to reduce net migration, enhance border security, and align immigration with skills and training needs. These changes will have profound implications for Indian professionals and businesses. The extended settlement period and higher English language requirements will necessitate strategic adjustments in workforce planning and skill development. Employers must invest in language training and ensure their employees meet the new skill and salary thresholds. For Indian employees, improving language proficiency and enhancing qualifications will be crucial to navigating the stricter immigration rules. While these reforms present challenges, they also offer opportunities for those who can demonstrate significant contributions to the UK economy and society.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Authors:

Gyanendra Mishra, Partner