Unpacking the UK’s New Statement of Changes and its Impact on Sponsoring Businesses

20 March 2024

In response to the UK Home Secretary's announcement last year, outlining a five-point plan to reduce net migration, the UK Home Office has published the latest Statement of Changes, dated 14 March 2024. This document provides crucial details on implementing proposed changes to the UK immigration system and their impact on individuals and sponsoring businesses.

These changes will apply to applications for entry clearance or permission to stay supported by a Certificate of Sponsorship assigned on or after 4 April 2024.

In this article, we will delve into some of the key changes affecting employers, including:

• Increased minimum general salary threshold and ‘going rates’ for the Skilled Worker Route.
• Replacement of the Shortage Occupation List with the new Immigration Salary List.
• Updated sponsor guidance regarding Certificates of Sponsorship.
• Supplementary work allowances for Skilled Workers.
• Increased income requirements for the Family Route.
• A review of the Graduate Visa Route.

For tailored advice on how these changes may affect your business, do not hesitate to contact our dedicated immigration team at Centuro Global.

1. Increased Minimum General Salary Threshold and ‘Going Rates’ for the Skilled Worker Route, Effective April 4, 2024

The minimum general salary threshold for the Skilled Worker Route will increase to ￡38,700, up from ￡26,200.

Under the new rules, the 'going rates' (based on the median earnings of specific occupations) will be calculated using official data rather than the 25th percentile of earnings. This change means the higher rate shown in the 50th percentile, or ￡15.88 per hour, will now apply. For those subject to transitional arrangements, the going rate means the higher rate shown in the 25th percentile or ￡11.90 per hour.

Sponsoring employers must pay Skilled Workers at least the general salary threshold or the 'going rate' for the individual occupation, whichever is higher.

Exceptions to the new rule will apply to:

• Individuals submitting applications before April 4, 2024, who held a Skilled Worker permit prior and have maintained continuous permission to reside in the United Kingdom since that time, with limited exceptions (who will be subject to previous thresholds); and
• Individuals who hold a PhD or an undergraduate degree in a STEM field, new entrants (who are generally individuals early in their career and who meet other eligibility requirements), or individuals on the new Immigration Salary List (ISL) who (will continue to benefit from salary discounts).

Further, individuals whose role was on the Shortage Occupation List but not on the new ISL can continue to rely on the lower ISL threshold if they are sponsored for a role that was eligible under the applicable rules at that time and are being sponsored to continue working in the same job for the same sponsor. This does not apply if these individuals are switching sponsors.

The new thresholds and going rates are based on the latest Office for National Statistics (ONS) pay data. Workers sponsored for Health and Care visas or in occupations where going rates are set using national pay scales are exempt from the new median salary requirements. Instead, a general threshold based on the 25th percentile continues to apply, updated from ￡26,200 to ￡29,000, according to the latest ONS pay data.

2. Updated Sponsor Guidance Regarding Certificates of Sponsorship

On 19 March 2024, UK Visas and Immigration (UKVI) revised parts of the sponsor guidance to clarify the impact of upcoming changes to the Immigration Rules - For sponsors and sponsored workers and the actions that sponsors must take.

Key Updates

The revised sponsor guidance provides clarity on the following points:

• The sponsorship management system will be offline from 19:00 (7 pm) UK time on 2 April 2024 until 09:00 (9 am) UK time on 4 April 2024. During this downtime, it will not be possible to submit applications for a sponsor license, add routes to an existing license, renew a license, apply for Skilled Worker Defined Certificates of Sponsorship (DCoS), request an increase or renewal of Undefined Certificates of Sponsorship (UCoS) allocations, or assign any Certificates of Sponsorship (CoS) to workers.
• UKVI has indicated that they will endeavour to process as many DCoS applications as possible before 19:00 (7 pm) UK time on 2 April 2024. Applications that remain unresolved at that time will be withdrawn. Sponsors with withdrawn applications must submit a new application after 09:00 (9 am) UK time on 4 April 2024, adhering to the updated SOC 2020 occupation codes and revised salary thresholds.
• Due to the incorrect occupation code, DCoS issued with a SOC 2010 occupation code, will not be valid for assignment from 4 April 2024 onwards. As a result, any DCoS with a SOC 2010 code must be assigned to a worker before 19:00 (7 pm) UK time on 2 April 2024. If not, the DCoS will be withdrawn, and sponsors must submit a new application for a DCoS after 09:00 (9 am) UK time on 4 April 2024, based on the relevant SOC 2020 occupation codes and revised salary thresholds.
• Requests to increase or renew UCoS allocations submitted before 19:00 (7 pm) UK time on 2 April 2024 will be processed as normal. However, if these requests are not resolved (or allocated CoS are not assigned to workers) before this deadline, any CoS assigned after that date must comply with the new requirements set out in the Immigration Rules effective from 4 April 2024. These changes will not impact existing UCoS allocations. To sponsor a worker under a SOC 2010 occupation code according to the current Immigration Rules, a CoS must be assigned to the worker before 19:00 (7 pm) UK time on 2 April 2024. Otherwise, the sponsor must update the CoS with the appropriate SOC 2020 occupation code and ensure the worker meets the updated salary thresholds before assigning the CoS.
• DCoS or UCoS assigned to workers before 19:00 (7 pm) UK time on 2 April 2024 will not be withdrawn and will retain their usual three-month validity period. Applications for entry clearance or permission to stay made with this CoS will be evaluated based on the salary thresholds and SOC 2010 occupation codes under the Immigration Rules in effect before 4 April 2024, even if the worker applies on or after that date.

Changes to Other Work Routes

From 4 April 2024, several changes will be implemented across different work routes:

Global Business Mobility: Senior or Specialist Worker and UK Expansion Worker Routes

The general salary threshold for senior or specialist workers in the Global Business Mobility routes will increase from ￡45,800 to ￡48,500. In contrast, the going salary rates will continue to be based on the 25th percentile. The High Earner threshold for these routes will remain at ￡73,900.

Transitional arrangements will be in place until 3 April 2030 for individuals who are already sponsored in these routes or make their initial application with a Certificate of Sponsorship assigned before 4 April 2024. These arrangements are similar to those for the Skilled Worker route, except that individuals in these routes cannot use them to change employers or settle.

Global Business Mobility: Graduate Trainee Route

For Graduate Trainees in the Global Business Mobility routes, the general salary threshold will increase from ￡24,220 to ￡25,410, with the going rates remaining based on 70% of the 25th percentile.

Scale-Up Route

For the Scale-Up route, the general salary threshold will increase from ￡34,600 to ￡36,300, now lower than the main Skilled Worker general threshold of ￡38,700.

Transitional arrangements are available for those whose Certificate of Sponsorship was assigned between 12 April 2023 and 3 April 2024. They will continue to be able to extend or settle provided their salary is ￡34,600 or more per year.

Creative Worker Route

A new requirement has been introduced for Creative Workers to demonstrate that they will uniquely contribute to creative life in the UK. The Home Office has decided against implementing the Migration Advisory Committee’s recommendation to apply a minimum salary threshold to this route, ensuring that it cannot be used to pay lower salaries than under the Skilled Worker route.

3. Replacement of the Shortage Occupation List with the Immigration Salary List as Recommended by the Migration Advisory Committee, Effective April 11, 2024

A new Immigration Salary List (ISL) will replace the previous Shortage Occupation List (SOL). The contents of the new list have been informed by a review conducted by the independent Migration Advisory Committee (MAC), which will further review the list later this year.

Similar to the SOL, the main benefit of inclusion on the ISL is a 20% reduction in the general salary thresholds.

However, unlike the previous SOL, the occupations included in the ISL are intended to be those the government believes make sense to lower the minimum salary threshold to fill labour gaps rather than being a comprehensive list of all occupations experiencing labour shortages.

Currently, 21 occupations are included on the ISL (18 are UK-wide, and 3 are specific to Scotland).

Individuals in these occupations will be able to meet a general salary threshold that is 20% lower than the standard threshold (to ￡30,960 or ￡23,200, depending on whether they would otherwise be subject to the ￡38,700 or ￡29,000 threshold). However, the previous 20% discount to the going rate requirement has been removed.

Occupations on the new ISL will still need to meet existing criteria. Businesses should be aware of the other requirements under the government's points-based immigration system post-Brexit, including the mandatory requirement that overseas employees have received a firm job offer and speak English to the required level.

List of Recommended ISL Occupations

• Managers and proprietors in forestry, fishing and related services
• Laboratory technicians
• Pharmaceutical technicians
• Boat and ship builders and repairers
• Stonemasons and related trades
• Bricklayers
• Roofers, roof tilers and slaters
• Construction and building trades not elsewhere classified
• Animal care services occupations not elsewhere classified
• Care workers and home carers
• Senior care workers
• Chemical scientists
• Biological scientists
• Social and humanities scientists
• Artists
• Dancers and choreographers
• Musicians
• Arts officers, producers and directors
• Graphic and multimedia designers
• Welding trades
• Carpenters and joiners

4. Broadened Definition of Supplementary Employment for Skilled Workers, Effective April 4, 2024

Under the upcoming changes, Skilled Workers can undertake limited supplementary employment, provided they continue working for their sponsor in their sponsored role. The supplementary employment must not exceed 20 hours a week and should be outside their contracted working hours if either:

• It is a role on the Shortage Occupation List, or
• It is at the same professional level as the sponsored work.

'Supplementary Employment' applies to various categories, including Skilled Workers, Senior or Specialist Workers, Ministers of Religion, International Sportspersons, Domestic Workers who are Victims of Modern Slavery, Creative Workers, Religious Workers, International Agreement Workers, and Government Authorised Exchange Workers.

With the new changes, skilled workers will have the flexibility to be self-employed and start their own businesses, as the supplementary work is no longer required to be in the same profession and at the same professional level as the job for which they are being sponsored. For example, someone sponsored in a financial services sector role could start a tech business on the side, provided they work outside their sponsored work hours.

Those seeking to work beyond these restrictions must secure Secondary Employment (a second sponsorship).

5. Adjustments to Financial Requirements for Family Routes, Set to Take Effect on April 11, 2024

The UK government has announced an update to the financial thresholds required for sponsoring partners and children under family immigration routes. These changes will align the financial criteria with the new minimum general salary threshold for skilled workers, which is ￡38,700, starting with an initial increase to ￡29,000. Unlike before, this updated requirement will no longer encompass an extra income stipulation for dependent children.

Previously, the requisite minimum income for applicants on the five-year partner route (enabling their partner to achieve settled status within five years) and the child Family Routes was set at ￡18,600 annually.

Exceptions to this rule will be made under certain critical circumstances, such as situations where there are insurmountable barriers to continuing family life with a partner outside the UK or when it is deemed unreasonable for a child to leave the UK. Individuals falling under these exceptions will have a lengthier path to UK settlement.

The revisions pertaining to the Partner route will come into effect for applications submitted on or after April 11, 2024. Nonetheless, transitional provisions are in place for individuals who, prior to April 11, are already in possession of a Family visa under the fiancé(e), proposed civil partner, or five-year partner route or for those who have applied before this date and whose applications are approved.

These measures are intended to offer clarity and assurance to those currently on the route or applying before the implementation of the increased financial thresholds.

6. Anticipated Review of the Graduate Route by 14 May 2024

Introduced on 1 July 2021, the Graduate route permits holders of Student visas who have completed their undergraduate, postgraduate, or doctoral studies in the UK to extend their stay for an additional three years for PhD graduates or two years for other graduates. This route is unsponsored and provides extensive employment rights, excluding roles as professional sportspersons.

The government intends to evaluate the effectiveness of the Graduate route in fulfilling its primary objectives, which encompass:

• Drawing and retaining outstanding international students;
• Enhancing the reputation of UK higher education;
• Contributing to the UK's targets for education exports and
• Assisting businesses in hiring highly skilled international talent.

Following the review, the Home Office will assess the Migration Advisory Committee's (MAC) recommendations and may revise the Immigration Rules pertaining to the Graduate route.

In light of the concerns regarding the route's alignment with its objectives and the government's broader agenda to reduce net migration, it is conceivable that forthcoming changes may impose further restrictions on the route's usage, such as limiting eligibility to graduates from certain institutions. The route may also be completely discontinued, mirroring the fate of the former Tier 1 (Post-Study Work) route.

The request for a rapid turnaround on the report suggests that the Home Office might expedite changes to the route in the latter half of 2024, potentially during the mid-year or in the Autumn Immigration Rules update.

Implications of the UK Immigration Rule Review for Employers

The review of the UK's immigration rules carries several implications for employers:

1. Increased Costs for Employers: The higher minimum general salary thresholds and 'going rates' for the Skilled Worker Route will escalate the costs of hiring foreign workers for these roles unless they fall under one of the limited exceptions. This could reduce the number of foreign nationals an employer can sponsor, potentially leaving positions unfilled in the labour market.
2. Restrictions of the Immigration Salary List (ISL): The ISL is more restrictive than its predecessor, the Shortage Occupation List, resulting in fewer employers benefiting from the lower salary threshold. Consequently, employers may face higher expenses when hiring foreign nationals for occupations that no longer qualify for a discount.
3. Impact on Family Members: The increased requirements may make it more challenging for certain family members to reside in the UK with their sponsoring partner or parent. This could deter some foreign nationals from seeking employment in the UK.
4. Access to Graduate Route Workers: Depending on the changes to the Immigration Rules, employers may have more restricted access to workers from the Graduate route and potentially no access at all if the route is abolished. Employers may need to reassess their talent pipelines to determine whether sponsoring Student route workers directly after graduation is viable and desirable.

Employers must stay informed and adapt their hiring strategies in response to these changes to ensure compliance and manage their talent needs effectively.

Recommended Actions for Employers in Light of Upcoming Immigration Changes

Given the impending restrictions and increased costs associated with the UK immigration system, employers should take proactive measures:

1. Review and Assign Certificates of Sponsorship (CoS): Employers should promptly review potential applicants and assign CoS where feasible before the 4 April 2024 deadline. Early action is crucial, especially in light of processing delays that could hinder initial steps such as obtaining a Certificate of Sponsorship.
2. Stay Informed: Employers should stay updated on the latest immigration rules and guidance. Regularly check for updates from official sources and consider consulting with immigration experts for personalised advice.
3. Leverage Increased Flexibility: The changes will allow sponsored workers more flexibility in their activities beyond their sponsored roles. Employers should consider how to use this increased flexibility to their advantage.
4. Advise Potential Family Visa Applicants: Individuals planning to apply for Family Visas should be encouraged to take advantage of the lower income requirements for applications submitted before 11 April 2024.

By taking these steps, employers can better navigate the evolving immigration landscape and ensure they are well-prepared for the upcoming changes.

Looking Ahead: Navigating the Future of Global Business Immigration

As we unpack the implications of the UK's new Statement of Changes on sponsoring businesses, it's clear that staying ahead in the evolving landscape of global immigration is crucial. Centuro Global is at the forefront, offering comprehensive business immigration solutions in over 170 countries. We're here to simplify the complexities of visa and immigration processes, ensuring your global workforce remains agile and compliant.

From short-term business travel to long-term visa applications and work permits, our dedicated team is committed to meeting your global mobility needs.

We'll continue to monitor developments and provide updates on the latest immigration changes. Join us in our upcoming Masterclass, "Get to Grips with UK Immigration Policy in 2024", on 4 April, where we'll delve deeper into these topics. For registration details, click here.

If you have any questions about this update or need assistance with a work route application, please contact our immigration team.

Article written by Kevin N.