New UK government: Top Five Business Immigration Actions to Watch

5th August 2024

Although the Labour Party’s manifesto was light on detail surrounding business immigration, there are several key actions businesses should be keeping an eye on during this parliament.

From Sheffield Patron, Fragomen.

Although the Labour Party’s manifesto was light on detail surrounding business immigration, there are several key actions businesses should be keeping an eye on during this parliament:

1. A commitment to reduce the net migration figure, with target numbers yet to be specified.
2. Increased penalties for sponsors who flout the rules or breach employment laws.
3. A strengthening of the Migration Advisory Committee (MAC) and a strategy to ensure that where migration is used to address skills shortages, it also triggers a plan to upskill workers in the UK.
4. The government does not want roles to remain on the shortage list long term and will look to establish a collaboration framework with skills bodies across the UK, including the Industrial Strategy Council and the Department for Work and Pensions. There is also a possibility for a review of the Resident Labour Market Test, which if reintroduced, which will add time to recruiting process as companies will need to wait for job ads to run their course and then interview and shortlist the candidates.
5. The MAC may be asked to review the salary thresholds introduced in April 2024 – as the changes have impacted a number of industries, especially in the Northern region. Many companies looking to recruit programmers and software development professionals as an example, are having a difficult time filling these roles. 

Before 4 April this year, businesses were required to pay programmers and software developers £34,000, but following the increase, the threshold jumped to £49,400. Similarly, graphic and multimedia designer salaries have increased from £23,000 to £30,960, however, as these roles still appear on the Immigration Salary List (formerly called the Shortage Occupation List)enables employers to utilize the Skilled Worker Visa as the minimum salary is 80% of the route’s usual minimum rate.

The MAC may also be asked to review the rule that care workers cannot bring dependants to the UK. This change has had a significant impact on application numbers, from its peak of   23,300 in August 2023 steadily decreasing since December 2023 to 4,800 in June 2024.

Businesses should prepare to engage with the MAC during their review and provide evidence regarding what roles should appear on the Immigration Salary List and how the salary raises are affecting their respective sectors. Fragomen can help companies and sectors develop engagement programmes and lines of communication with the new government, as well as prepare direct submissions to the MAC.