UK immigration overhaul: Indians face new job, visa and salary rules

Business Standard

4 days ago

Indians working or planning to work and study in the United Kingdom must brace for sweeping changes in the immigration system, many of which come into effect from July 22, 2025.
This is the first wave of changes following the Labour government's immigration white paper published in May 2025. Several Skilled Worker visa rules are being overhauled, with new restrictions on jobs, salary levels, and long-term settlement pathways.
What's changing and who will it affect?
According to an update from the UK Home Office, from July 22, all Skilled Worker roles must meet the Regulated Qualifications Framework (RQF) Level 6 benchmark, equivalent to a UK bachelor's degree. This change cuts out hundreds of jobs previously considered eligible.
Around 180 roles—especially in hospitality, logistics, and care—will no longer qualify for sponsorship under the Skilled Worker route. These are sectors that often rely on positions below graduate level, such as care assistants, chefs, and delivery supervisors.
However, there is a small reprieve for employers. Any Certificate of Sponsorship (CoS) issued before July 21, 2025, will still be accepted under the current rules—even if the role no longer qualifies post-deadline.
Salary thresholds are going up
The minimum salary requirement is also being raised for several visa categories. For the Skilled Worker visa, the threshold is increasing from £38,700 (about ₹41.8 lakh) to £41,700 (about ₹45 lakh) annually.
Other routes, including Global Business Mobility and Scale-up, will also see revised salary benchmarks. Crucially, all Skilled Worker visa holders applying for Indefinite Leave to Remain (ILR) after July 22 must meet the new salary threshold—even if they applied earlier under the old rules.
Note: Indefinite Leave to Remain (ILR) is a UK immigration status that allows a person to live, work, and study in the UK without any time restrictions. It's a step towards permanent residency and, ultimately, British citizenship.
There is no transitional relief. 'The new salary thresholds apply immediately for those seeking settlement, so employers must plan accordingly,' said a release by the UK government.
What employers need to do now
With the new system now live, employers are under pressure to act quickly to stay compliant and avoid disruption to staffing pipelines. Immediate steps include:
• Issue CoS before July 21 for jobs affected by the new rules
• Audit sponsored job roles to check if they meet RQF Level 6
• Update salary bands and HR budgets to reflect the new thresholds
• Identify employees who are already on the Skilled Worker route and may still qualify under transitional arrangements
• Review recruitment strategies and invest in upskilling local workers
• Communicate clearly with existing staff on potential implications
• Consult legal experts to minimise the risk of non-compliance
More changes expected this year
The white paper released in May outlines several additional proposals expected to roll out later in 2025. These include:
• Increase in the Immigration Skills Charge
• Revised English language eligibility standards
• New family visa rules
• Graduate Visa duration cut from 2 years to 18 months
• Proposal to double the Skilled Worker settlement period from 5 years to 10
Ten-year wait for permanent residence?
Under the government's 'earned settlement' model, most migrants would need to wait 10 years instead of the current 5 to qualify for Indefinite Leave to Remain. However, those making 'Points-Based contributions to the UK economy and society' may still qualify earlier.
The Home Office has not yet explained how these points will be awarded or how much faster the accelerated route will be. 'We will consult on the earned settlement scheme later this year,' said Seema Malhotra, the UK minister for migration and citizenship in a written reply to Parliament.
Who is exempt from the 10-year rule?
So far, partners of British citizens and victims of domestic abuse have been confirmed as exempt. They can continue to qualify for ILR after five years.
EU citizens protected under the EU Settlement Scheme will also retain their existing five-year pathway, as required under Article 15 of the UK-EU Withdrawal Agreement.
The Home Office has not yet confirmed whether other visa categories, such as the Hong Kong BN(O) route, will be exempt.
Do the new settlement rules apply to existing visa holders?
This is unclear. During a statement on May 12, 2025, Home Secretary Yvette Cooper said:
'We will set out further details of the earned settlement and citizenship reforms later this year, and we will consult on them'.
She added: 'We want the settlement rules to be amended as swiftly as possible and to apply widely, but we will consult on the detail'.
So far, the government has not said whether people already on existing visa routes will be affected or whether the ten-year requirement will apply only to new arrivals.
Will MPs vote on these changes?
According to an FAQ shared by the UK government, most of the changes will not be subject to a parliamentary vote. The UK immigration system is governed through Statements of Changes, which automatically take effect unless a motion of disapproval is passed within 40 days.
In practice, this rarely happens. For example, the major visa changes introduced by the previous Conservative government in 2024 were not voted on, despite heated debate.
However, changes requiring primary legislation—such as new levies on international students or amendments to citizenship law—will need Parliament's approval. Those are expected to be introduced in stages through separate bills.