Following the government's announcements last year to introduce further visa restrictions to reduce net migration figures and the latest report from the Migration Advisory Committee last month to replace the Shortage Occupation List (SOL) with a new Immigration Salary List (ISL), the Statement of Changes 14 March 2024 has now been published providing further detail on how the proposed changes will apply in practice and the impact they will have on individuals and businesses.

We have summarised some of the key changes impacting non-care or national pay scale routes:

Skilled Worker

• The minimum basic annual salary to apply for a Skilled Worker visa will increase from £26,200 to £38,700 for new applicants from 4 April 2024.
• The minimum "going rate" for the role to be performed by the employee is also increasing from the 25th percentile to the 50th percentile (median salary for a UK worker). Applicants sponsored prior to the rule change will not be subject to the 50th percentile when extending their visa or changing employer.  
• The current Standard Occupational Classification (SOC) 2010 document will be replaced by the SOC 2020 version, which contains the latest Office for National Statistics (ONS) pay data.
• The "new entrant" discount will still apply, offering a 30% reduction against the 50th percentile, so long as the salary is still at or above £30,960.
• Some PhD applicants can qualify for a lower visa threshold of £34,830 (£30,960 for STEM subjects) so long as they are paid at least 90% (80% for STEM subjects) of the "going rate" for the job as listed on SOC 2020.
• Roles that made it onto the ISL must be paid the "going rate" as per SOC 2020, but benefit from a lower visa threshold of £30,960.
• The SOL and subsequent discount offered to those roles has been scrapped.

This table illustrates changes to minimum "going rates" for a selection of roles based on a 37.5 hour working week.

Standard Occupational Classification (SOC) code system

• The current SOC code system used for immigration purposes is being updated from SOC 2010 to SOC 2020, which represents the latest salary data presented by the ONS. 
• For sponsorships made prior to 4 April, applicants will need to apply SOC 2020 when making a new application. Whilst their minimum salary should continue to be benchmarked based on the current system, the going rates are being updated to reflect rises in UK salaries due to inflation. 
• As there will be some differences in the data between SOC 2010 and the most recent SOC 2020, an additional table will be added to ensure that existing sponsorships can extend into a pre-existing SOC code or apply for settlement based on the prior SOC code. However, if a SOC code has been removed because it is not deemed sufficiently skilled enough for sponsorship under the new system, it will not be possible to change employers and remain in the same SOC code. 

Other work-related routes

From 4 April 2024, there will also be changes applicable to other work routes as follows:

• For Senior or Specialist Workers in the Global Business Mobility routes, the general salary threshold is being increased from £45,800 to £48,500 and the going rates will be updated using the latest ONS pay data, but still subject to the 25th percentile.
• For Graduate Trainees in the Global Business Mobility routes, the general salary threshold is being increased from £24,220 to £25,410 and the going rates remain based on 70% of the 25th percentile, updated using the latest ONS pay data.
• For the Scale-Up route, the general salary threshold is being increased from £34,600 to £36,300 and the going rates will be updated using the latest ONS pay data.

Long residence settlement

• A new provision has been introduced which requires applicants to have held their current permission for at least one year (or have been exempt from immigration control within the 12 months immediately prior to their application) to qualify for settlement on the basis of long residency.

Family routes

• The minimum income threshold for family members, on the five-year route to settlement as a partner under Appendix FM, will rise from £18,600 to £29,000 from 11 April 2024.
• Transitional arrangements will be in place for individuals who, before 11 April 2024, already held a Family route visa and those who submitted applications prior to 11 April 2024.
• Under transitional arrangements, the minimum income requirement, as applicable at the time, will continue to apply, providing the applicant is subsequently submitting further applications to remain with the same partner.

Changes to the English language requirement

• For applications which have an English language requirement, Appendix "English" Language is being updated to include international GCSEs, which can be accepted as evidence of English language ability.

EU Settlement Scheme (EUSS)

• Appendix "Administrative Review (EU)" will be amended from 4 April 2024 to remove the option for individuals to apply for an out-of-time administrative review of a relevant EUSS decision taken before 5 October 2023.

Conclusion

The key changes to work-related sponsorships seek to ensure that migrant skilled workers are paid at least the "median" salary received by a resident worker for a particular role. However, the SOC code system used for the purposes of benchmarking immigration applicants does not take into account regional UK differences in salaries. 

Employers and those working within immigration compliance and talent planning should be aware that the minimum salaries for work-sponsored visas are rising significantly. It will be important to manage and communicate these changes to hiring businesses as well as to re-assess budgets if required. 

The changes will be felt more acutely amongst companies sponsoring graduates within junior roles, or roles which previously appeared on the SOL – with the minimum salary threshold for "new entrants" rising from £20,960 to at least £30,960. Companies looking to retain talent or recruit migrants within their graduate programmes may need to urgently analyse the effects of these changes and any adjustments they need to make to mitigate the longer-term impacts. 

Given the rising costs of sponsorship in general, some employers are also re-assessing the way in which visa costs are paid for. It may also be beneficial to consider alternative routes to Skilled Worker sponsorship moving forwards, such as GBM: Senior or Specialist Worker, Youth Mobility, Ancestry routes, Graduate/High Potential, Scale-up and other family routes, where possible.