(4 min read)
On 4 December 2023 the Government announced a new 'five-point plan' to cut immigration set to come into force in Spring 2024. Below we explore these reforms along with other changes set to come into effect in 2024, as well as general check-ups sponsors should consider in the new year.
Expected changes in 2024:
Five Point Plan to cut net migration:
- Skilled Worker visas – increase in salary threshold – the salary threshold for skilled worker visas is set to increase by nearly 50% from £26,200 to £38,700. This increase will not however apply to health and care workers. Crucially, this will also not apply to persons already in the Skilled Worker route when they apply to extend their stay or settle in the route.
- Reform of Shortage Occupation List (SOL) – the government has proposed replacing the SOL with a new, reduced 'Immigration Salary List' which will retain a general threshold discount, but this will likely be lower than the 20% salary discount under the current list.
- Health and Care Worker visas – overseas health and care workers will no longer be allowed to bring dependants to the UK. In addition, care businesses that wish to sponsor via this visa route will only be able to do so if they are regulated by the Care Quality Commission.
- Family visas – increase in salary threshold – the minimum income required for those settled in the UK who want their family members to join them will increase from £18,600 to £38,700. This increase will be incremental, starting with an increase to £29,000 in Spring 2024.
- Graduate visas – the MAC will also conduct a review of Graduate visas, although it is not clear what reform will follow. This follows the announcement back in May 2023 that individuals on student visas will no longer be permitted to bring in dependants, which has just come into effect as of 1 January 2024.
Increase in civil penalties for businesses employing illegal workers:
- From 13 February 2024, civil penalties for employing workers without the right to work will triple to £45,000 for a first breach, and £60,000 for any subsequent breach within a three-year period.
- See our recent article here for more details.
Transition to eVisas:
- The Home Office aims to switch to a fully digital visa system by 1 January 2025.
- New guidance confirms that all persons holding limited and indefinite leave to enter or remain will no longer be issued with a physical document as evidence of their status.
- During 2024 all persons holding biometric residence permits and biometric residence cards, or who have leave confirmed with a wet ink stamp or vignette, will need to apply for a UKVI account.
- No immediate steps are required but the Home Office will provide more details in 2024 as to when registration needs to be completed.
Removal of sponsor licence renewal requirement:
- From the 6 April 2024, the requirement for employers to renew their sponsor licence will be removed.
- If your licence is due to expire on or after the 6 April 2024, you will no longer need to apply to renew your licence or pay a renewal fee.
- Any licence due to expire prior to this date will need to be renewed in the usual way.
WHAT DO THESE CHANGES MEAN FOR EMPLOYERS?
The increase in the salary threshold for Skilled Worker visas to £38,700 is a significant change and represents a substantial financial burden for employers that rely on skilled migrant workers. Sponsors should be aware of this and factor this into any budgeting and planning for 2024.
Employers that are currently in the process of applying for new Skilled Worker visas, or have plans to apply in the near future, may want to act quickly to ensure that the Home Office receives any applications before the increase comes into effect. This is also worth considering if an employer is seeking to rely on the current 20% salary discount under the Shortage Occupation List, which looks set to be revised.
The increase in civil penalties for employing illegal workers is an indication that the Home Office is strengthening its approach to the prevention of illegal working in the UK. We are advising employers that they should review their immigration/right to work processes to ensure full compliance.
NEW YEAR SPONSOR LICENCE CHECK UP:
The New Year is a great opportunity to pause to consider your sponsor licence compliance duties for the year ahead - HR teams could consider:
- Annual renewal of CoS: Check and diarise when your annual allocation of undefined certificates of sponsorship needs to be renewed.
- Licence renewal: Check when your licence is due to expire (licences are subject to renewal every four years). However, as noted above this requirement will be removed for any licence due to expire on or after the 6 April 2024.
- Recruitment needs: Consider whether you may need to recruit migrant workers this year and factor in the time/ costs of sponsorship.
- Key Personnel: Check that all the key personnel on your sponsor licence are still in their roles and available to maintain sponsor compliance duties.
- Visa expiry dates: Check when your sponsored migrants' visas are due to expire and diarise renewal processes. Note that these sponsored workers will not be subject to the new increased salary thresholds when renewing.
- Sponsored migrants' details: Ask migrants to confirm their contact details and consider any upcoming changes that may need reporting.
- Corporate changes: Upcoming changes to company address, ownership, TUPE transfers and other corporate changes may all need reporting.
Contributors to this article were Sarah Harrop and Ben Fry.
Next Steps
The Addleshaw Goddard Immigration team is a nationally recognised team which is regularly asked to support clients with the full spectrum of their immigration needs. We can provide refresher training, help with the prevention of illegal working and support with right to work queries, undertake mock audits, and assist clients with getting ready for any anticipated Home Office compliance visits.
If you would like to discuss anything raised in this article, feel free to contact one of the authors.
