New Immigration Rules radically reform Skilled Worker route
14 March 2024
This is the biggest reform of UK work routes since Brexit. The clear message from Government is that net migration must be reduced. Most changes affect Skilled Workers and come into force on 4 April 2024, however other work routes are also affected.
The Statement of Changes in Immigration Rules HC 590 was published on 14 March 2024.
This is one of a package of measures designed to restrict who can come to the UK. Other reforms are due to be implemented during 2024 and into early 2025. See our previous article for a timeline of these.
Below is a summary of the key takeaways for employers.
Skilled Worker route changes
Sweeping changes are made to the Skilled Worker route, including:
- Increases to the general salary thresholds for the various tradeable points options, and the addition of tradeable points options to cover individuals under transitional arrangements (see further details in the table below);
- Increases to the occupation-related going salary rates, from the 25th percentile to the 50th percentile (median), with limited exceptions for national pay scale occupations and Health and Care occupations not on a national pay scale;
- Updates to the going salary rates for occupations on a national pay scale and Health and Care occupations not on a national pay scale – these are in line with the latest data from the Office for National Statistics and/or the latest national pay scale data;
- Updates to occupation coding updated to align with SOC 2020 instead of SOC 2010, including an additional table being added to Appendix Skilled Occupations to enable individuals in deleted occupation codes to be able to extend or settle in the UK;
- Replacement of the Shortage Occupation List (SOL) with a new Immigration Salary List (ISL), including not having a 20% going rate discount for occupations on the ISL;
- Significant expansion of supplementary employment permission; and
- Introduction of Health and Care visa criteria into the Immigration Rules that are currently contained in a separate policy document outside the Rules (with no change to the criteria aside from occupation coding being aligned to SOC 2020 instead of SOC 2010).
The points options for new entrants and holders of relevant PhDs remain in place, with the same percentage discounts on the general threshold and going salary rates as currently. The salary requirements for these groups are however substantially increased because the of the magnitude of the increases to the main general threshold and the move in occupation-related going rates from the 25th percentile to the 50th.
Transitional arrangements apply until 3 April 2030 for Skilled Workers whose Certificate of Sponsorship is assigned before 4 April 2024 and who have maintained continuity of permission as a Skilled Worker since that time. It is not yet entirely clear whether individuals who apply to change their employer will be excluded from relying on the transitional arrangements.
Further details of the changes are outlined below.
Increases to salary thresholds
The increases to the salary thresholds for Skilled Worker points options are set out below.
20 tradeable points are awarded for a salary that equals or exceeds both the general salary threshold or the going rate, whichever is higher. Under the new Rules, the going rate means the higher of the rate shown in the 50th percentile or £15.88 per hour. For those subject to transitional arrangements, the going rate means the higher of the rate shown in the 25th percentile or £11.90 per hour.
| Points option | New salary thresholds | Points option | Transitional salary thresholds |
| A |
Salary equals or exceeds both:
|
F |
Salary equals or exceeds both:
|
| B |
PhD in a subject relevant to the job and salary equals or exceeds both:
|
G |
PhD in a subject relevant to the job and salary equals or exceeds both:
|
| C |
PhD in a STEM subject relevant to the job and salary equals or exceeds both:
|
H |
PhD in a STEM subject relevant to the job and their salary equals or exceeds both:
|
| D |
Job is on the Immigration Salary List (formerly Shortage Occupation List) and salary equals or exceeds both: • £30,960 per year (up from £20,960); and • The going rate for the occupation code in the 50th percentile (up from 25th percentile) based on SOC 2020 (instead of SOC 2010). Note that a going rate discount is not applicable for this option. |
I |
Job is on the Immigration Salary List (formerly Shortage Occupation List) and salary equals or exceeds both:
|
| E |
Applicant is new entrant at the start of their career and their salary equals or exceeds both:
|
J |
Applicant is a new entrant at the start of their career and their salary equals or exceeds both: £23,200 per year (up from £20,960); and 70% of the going rate for the occupation code in the 25th percentile (the same percentile in place currently) based on SOC 2020 (instead of SOC 2010). |
| K |
Job is in a listed health or education occupation and salary equals or exceeds both of:
|
||
Supplementary employment
Skilled Workers are allowed to undertake limited supplementary employment, provided they remain working for their sponsor in their sponsored role. The employment must be outside their contracted working hours and for no more than 20 hours a week.
Currently, the employment must either be in the same occupation and at the same professional level as the sponsored role, or in an occupation on the Shortage Occupation List.
An amendment is made to allow supplementary employment for Skilled Workers to be in any occupation that is eligible for the Skilled Worker route. This is a significant and unexpected liberalisation from the current position and may mean that more Skilled Workers consider taking up supplementary employment. Employers should take care that adequate documentation is maintained for any workers carrying out supplementary employment with them – see our earlier article here for further information on this.
Note that this liberalisation does not apply to other sponsored workers to whom the supplementary employment condition applies – see the further section on supplementary employment in other work routes below.
Transitional arrangements for the Skilled Worker route
Transitional arrangements apply to those with existing permission in the route and to those who make an initial application with a Certificate of Sponsorship assigned before 4 April 2024, even if the application itself is made after this date.
For those who are covered under the transitional arrangements, a general threshold based on the 25th percentile will apply, but it increases for individuals with CoS assigned on or after 4 April from £26,200 to £29,000. This is to account for inflation.
New tradeable points options F to K apply to Skilled Workers subject to transitional arrangements. Going rate salaries are adjusted to align with the most recent salary data in accordance with ASHE 2023 (instead of ASHE 2021). As the UK is in a period of inflation, these salaries are in most cases still significantly higher than currently.
A Skilled Worker applicant subject to transitional arrangements applying to settle in the UK must be paid at least £29,000 or the going rate (set at the 25th percentile under tradeable points option F), whichever is higher.
Transitional arrangements remain in place until 3 April 2030, provided that an individual seeking to rely on them continues to maintain continuous status under the Skilled Worker route. Short overstays covered by paragraph 39E of the Immigration Rules will be ignored. Applicants should ensure that they submit applications to extend, change employment or settle in the UK before 4 April 2030. Applications submitted after this date will be subject to the new salary requirements.
Changes to other work routes
Supplementary employment in work routes other than Skilled Worker
Where a worker is allowed to undertake supplementary employment, this will now only be allowed if the occupation is on the Immigration Salary List or is in the same profession and at the same professional level as the job they are being sponsored for. This is a significant restriction from the current position, since more occupations are on the Shortage Occupation List than will be on the Immigration Salary List. For further information, see our previous article here.
SOC code updates
The switch to SOC 2020 occupation coding affects all work routes.
Individuals in deleted occupation codes will be able to extend under their existing SOC 2010 code.
Global Business Mobility: Senior or Specialist Worker and UK Expansion Worker routes
The following changes are made:
- The general salary threshold is increased from £45,800 to £48,500;
- The going salary rates remain at the 25th percentile, but are updated in line with ASHE 2023.
The High Earner threshold for these routes remains at £73,900.
Transitional arrangements apply until 3 April 2030 where an individual is already sponsored in these routes or makes their initial application with a certificate of sponsorship assigned before 4 April 2024. They work in a similar way as for the Skilled Worker route, except that individuals in these routes will not use them to change employer or settle.
Global Business Mobility: Graduate Trainee route
The following changes are made affecting individuals with a certificate of sponsorship assigned on or after 4 April 2024:
- The general salary threshold is increased from £24,220 to £25,410;
- The going salary rates remain at 70% the 25th percentile, but are updated in line with ASHE 2023.
Creative Worker route
A redundant reference is being removed regarding an exemption from resident labour market testing where the occupation is on the Shortage Occupation List. This is because the current system does not require resident labour market testing. A requirement is however introduced to demonstrate that the Creative Worker will be making a unique contribution to creative life in the UK.
The Home Office has rejected the Migration Advisory Committee’s recommendation to apply a minimum salary threshold to this route so that it cannot be used to pay lower salaries than under the Skilled Worker route.
Scale-up route
The general salary threshold for this route was originally designed to be higher than the Skilled Worker general thresholds. It is updated from £34,600 to £36,300, meaning it will now be 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.
Seasonal Worker route
For certain poultry workers who are paid in line with the Skilled Work route, the salary threshold is raised from £26,200 to £38,700 and the hourly rate from £10.75 to £15.88.
The minimum hourly rate of pay for this route is increased to £10.42 to £11.44, in line with increases to the National Minimum Wage and National Living Wage.
Partner route changes
The Partner route includes permission to work. The minimum income requirement to qualify under this route is being increased from £18,600 for the main applicant to £29,000. The requirement to have additional income for children is removed. The threshold above which savings may count towards meeting the minimum income requirement remains at £16,000.
The changes to the Partner route take effect for applications made on or after 11 April 2024. Transitional arrangements are made for individuals who have made their first (successful) application as a fiancé(e), proposed civil partner or partner before 11 April 2024. They must meet the current financial requirements.
More restricted work permission for asylum seekers
The Rules confirm that from 4 April 2024 asylum seekers may only request permission to work in occupations included on the Immigration Salary List. This is a significant further restriction on the current position, where permission may be sought to work in an occupation on the Shortage Occupation List. It is contrary to the MAC’s October 2023 recommendation that asylum seekers who are allowed to seek permission to work should be able to work in any job.
What actions should employers take now?
Employers should urgently review potential applicants and assign CoS where possible before 4 April 2024. It is important for employers to act as soon as possible, particularly in view of ongoing processing delays that could slow down preliminary steps such as obtaining a certificate of sponsorship. For more information and top tips, see our previous article.
We will continue to monitor for further details and provide updates in this area. We will also be covering these changes in our next What’s Happening in Immigration Law session on 26 March. For sign up information, click here.
If you have any queries about this update or need assistance with a work route application, please contact a member of our immigration team.