logo
Graduate Route shortened, Caregiver visas curtailed: The fine print of UK's White Paper on immigration

Graduate Route shortened, Caregiver visas curtailed: The fine print of UK's White Paper on immigration

Economic Times21-05-2025

On May 12, 2025, the UK Government published a White Paper describing intended changes to the UK's Immigration system, which would mainly impact students, workers, and caregivers, among other things.
ADVERTISEMENT These reforms are part of the UK government's continuing attempts to reduce net migration, which we have seen over the last 18-24 months. The overarching goals for these changes are: Reduction in net migration;
Linking local skills and training requirements in the UK to deter employers from relying solely on immigration to fill their skills shortages;
Build a fair and effective system that is clear and does not result in perverse outcomes;
Stricter compliance and enforcement with immigration, including a severe crackdown on illegal workers and deportation of foreign criminals; and
Enhancing the need for rules to promote social integration including the need for language skills and benefits for foreign nationals' contributions to the UK.
These proposals will require rule changes or entirely new legislation to take effect. Hence, it is unclear when these reforms will take effect, but they will most likely be implemented in stages.
(Join our ETNRI WhatsApp channel for all the latest updates) The proposed changes in the White Paper are broad and restrictive. Set out below are some of the key provisions.
1. Employment Based: Limit skilled worker sponsorship to graduate-level roles under the Regulated Qualifications Framework (RQF) 6+). This is a significant jump from the current high-school level (RQF3 – A levels). Under the proposed changes, any roles below RQF6+ must be on a dynamic, sector-based Temporary Shortage Occupation List. The Temporary Shortage Occupation List would provide time-limited access to the Points-Based immigration system. For an occupation to be included on the list:
there must have been long term shortages;
the MAC must have advised it is justified;
there must be a workforce strategy in place; and
employers seeking to recruit from abroad must be committed to playing their part in increasing recruitment from the domestic workforce.
2. Care Givers: Discontinue Care Worker Visas for new overseas candidates. However, until 2028, visa extensions and changes would be permitted for affected foreign nationals already present in the United Kingdom.
ADVERTISEMENT 3. Students: Reduce the validity period of employment under the 'Graduate Route' to 18 months (down from the current 24 months). This route, which allows graduates to remain in the United Kingdom after their studies, would also be linked to job criteria, unlike the current situation, where there is no job level condition under this route. The paper also proposes adding a 6% tuition levy to overseas tuition fees.
4. Longer Path to citizenship: Increasing the necessary period of residence to be eligible for long-term residence to 10 years, up from the current five years. The government is also considering establishing a fast-track route under a social and economic contribution-based model, but details are not yet confirmed. Citizenship reforms would also mirror these changes, with necessary residence periods increasing to 10 years, up from the current five years. However, individuals may be able to reduce the qualifying period to settlement and citizenship based on contributions to the UK economy and society.
ADVERTISEMENT 5. Language requirement changes: Increasing threshold requirements for main applicants already subject to the language requirement, who would need to achieve a B2 level of English under the Common European Framework of Reference (CEFR) system. The language requirement would also be applied to adult dependents (who must reach at least A1). It is not clear whether this will apply to all routes of immigration.
6. Highly skilled routes: Doubling the number of eligible institutions from which applicants for the High Potential Individual (HPI) route could graduate to qualify and streamlining and scaling the Global Talent and Innovator Founder visas.
ADVERTISEMENT In addition to the above, proposed changes will be introduced to create a system supporting integration and community cohesion, including new rules on the ability to speak English and people's contribution to the UK.The Government also intends to explore how to ensure that employers, using the immigration system, are incentivized to invest in boosting domestic talent, including options to restrict employers sponsoring skilled visas if they are not committed to increasing skills training. They also intend to ensure that the very highly skilled individuals have opportunities to come to the UK and access our targeted routes for the brightest and best global talent.
Enhanced Enforcement
ADVERTISEMENT The regulations will also be changed to introduce tighter controls, restrictions, and scrutiny to deal with apparent abuse and misuse of the immigration system, from a crackdown on illegal work to the deportation of foreign criminals. This includes using e-Visas and modern technology, building systems in the banking system to monitor compliance with tax laws, and continuing the roll-out of digital identities for all foreign nationals. We expect the Government to introduce more restrictive and specific reforms to ensure compliance with the laws, including streamlining and expediting removal processes.Once again, we would like to remind readers that the proposed reforms will require either regulatory changes or new legislation to be implemented. Accordingly, the timeline for any potential changes remains uncertain.
Disclaimer: This article is drafted based on publicly available information and some of the comments are the author's personal views.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

3.5% Excise Tax on transfers: What Trump's bill means for global Indians, Poonam Mirchandani decodes
3.5% Excise Tax on transfers: What Trump's bill means for global Indians, Poonam Mirchandani decodes

Time of India

time2 hours ago

  • Time of India

3.5% Excise Tax on transfers: What Trump's bill means for global Indians, Poonam Mirchandani decodes

Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel President Trump and the Republican Government introduced a new bill 'The One, Big, Beautiful Bill', on May 12th 2025, which was approved by the House of Representatives by a 215-214 vote on May 22nd 2025 and is expected to be placed before the Senate later this the many changes proposed by the Government, one key change is introduction of Excise Tax of 3.5% (originally proposed as 5%) which shall be levied on any remittance amount transferred from United States of America ('Remittance Transfers')This change is applicable for all senders of such Remittance Transfers . The only exception being US Citizens or Nationals, subject to such remittance being undertaken by them through a 'qualified remittance transfer provider'.The Bill introduces parameters for qualified remittance transfer provider, which is an entity who enters into compliance agreement with the government agreeing to verify the status of remitter as citizen or national of US ('verified United States sender')If the sender is an individual, credit shall be available for aforesaid taxes paid subject to the verified United States sender mentioning his/her social security number as well as that of spouse (if sender is married) in return of tax for the taxable yearWhat this means simplistically, is that when any person who does not qualify as a verified United States sender, makes a Remittance Transfer, the remittance transfer provider will deduct a sum of 3.5% on the amount of transfer before completing the interesting part is that the Government has also introduced a secondary liability on the remittance transfer provider if they fail to make such deduction and deposit it with the authorities every quarter, they will be liable to pay the unpaid taxes personallyTherefore, every immigrant including Green card holders, immigrants on visas like H1B, L1, L2 etc. all will be impacted by this Remittance Transfer Excise Tax. In fact, even US Citizens if they don't make remittance through a qualified remittance transfer provider will have to pay this taxWhat the bill does not clarify is the definition of 'sender' for the purpose of this proposed Remittance Transfer excise the anti-conduit rules have been extended to remittance transfers, there is no clear provisions on whether corporates, entities, who hold accounts in US and make Remittance Transfers will have to pay this taxThe proposed Bill also does not clarify on how inter correspondent banking transfers be treated especially for international investors who are not US citizen or resident or Green Card holders or any other category of resident alien, but own investments through US brokers and US industry insiders are of the view that the tax will be only applicable for remitters who are resident in the US at time of transfer, how the qualified remittance transfer provider will distinguish such an international investor will be a key point of will be interesting to see how the law will shape up soon, as Senators work on developing changes to the Bill prior to placing it before the Senate later this month for approvalThe Bill does mention the Effective Date for this new Remittance Transfer Excise Tax as being with respect to transfers made after December 31, 2025. Similarly, tax credits, if available, shall apply to taxable years ending after December 31, 2025 NRIs historically have remitted funds earned in the US either back to India or invest them outside the US. In both scenarios, they will now have to pay 3.5% Remittance Transfer Excise Tax on any amounts which they remit after December 31, 2025This may activate a stream of outflow of money from US accounts by NRIs and other immigrants to their home countries or locations outside US to sidestep trigger of aforesaid anticipate families initiating planning for historical funds prior to the changes being implemented as well as restructuring their present account holdings outside post December 31, 2025 this window gets closed especially for individuals who generate regular income in US, who will have no choice but to pay this taxOn a separate note, the Bill puts at rest a constant debate on the sunset clause for US Estate and Gift Tax Exemption the proposed Bill, the original exemption amount of USD 5,000,000 has been substituted with USD 15,000,000 making it effective for taxable years beginning after December 31, will be a relief for many US Persons who are concerned that the current limits of USD 13.99 million will stand reduced to the original number of USD 5 the introduction of the revised provisions this fear will lay at rest as the government now has proposed scaling up the base limit to USD 15 million with future adjustments for inflationGiven the constantly evolving cross border legal and tax landscape, Indian HNIs and family businesses need to reassess their global financial planning . As cross-border tax regimes tighten, having structured, compliant platforms becomes US will continue to be a desired location for Indians while the UK remains a viable wealth gateway, particularly with recent Free Trade Agreement (FTA) gains, but each jurisdiction now carries unique tax implications that must be managed prudently and in a compliant manner with proper planning and advice.(The author is MD, Wealth Planning & Family Solutions, LGT Wealth India): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

3.5% Excise Tax on transfers: What Trump's bill means for global Indians, Poonam Mirchandani decodes
3.5% Excise Tax on transfers: What Trump's bill means for global Indians, Poonam Mirchandani decodes

Economic Times

time3 hours ago

  • Economic Times

3.5% Excise Tax on transfers: What Trump's bill means for global Indians, Poonam Mirchandani decodes

President Trump and the Republican Government introduced a new bill 'The One, Big, Beautiful Bill', on May 12th 2025, which was approved by the House of Representatives by a 215-214 vote on May 22nd 2025 and is expected to be placed before the Senate later this month. ADVERTISEMENT Amongst the many changes proposed by the Government, one key change is introduction of Excise Tax of 3.5% (originally proposed as 5%) which shall be levied on any remittance amount transferred from United States of America ('Remittance Transfers') This change is applicable for all senders of such Remittance Transfers. The only exception being US Citizens or Nationals, subject to such remittance being undertaken by them through a 'qualified remittance transfer provider'. The Bill introduces parameters for qualified remittance transfer provider, which is an entity who enters into compliance agreement with the government agreeing to verify the status of remitter as citizen or national of US ('verified United States sender')If the sender is an individual, credit shall be available for aforesaid taxes paid subject to the verified United States sender mentioning his/her social security number as well as that of spouse (if sender is married) in return of tax for the taxable yearWhat this means simplistically, is that when any person who does not qualify as a verified United States sender, makes a Remittance Transfer, the remittance transfer provider will deduct a sum of 3.5% on the amount of transfer before completing the transaction. ADVERTISEMENT The interesting part is that the Government has also introduced a secondary liability on the remittance transfer provider if they fail to make such deduction and deposit it with the authorities every quarter, they will be liable to pay the unpaid taxes personallyTherefore, every immigrant including Green card holders, immigrants on visas like H1B, L1, L2 etc. all will be impacted by this Remittance Transfer Excise Tax. In fact, even US Citizens if they don't make remittance through a qualified remittance transfer provider will have to pay this tax ADVERTISEMENT What the bill does not clarify is the definition of 'sender' for the purpose of this proposed Remittance Transfer excise tax. Though the anti-conduit rules have been extended to remittance transfers, there is no clear provisions on whether corporates, entities, who hold accounts in US and make Remittance Transfers will have to pay this tax ADVERTISEMENT The proposed Bill also does not clarify on how inter correspondent banking transfers be treated especially for international investors who are not US citizen or resident or Green Card holders or any other category of resident alien, but own investments through US brokers and US banks. Though industry insiders are of the view that the tax will be only applicable for remitters who are resident in the US at time of transfer, how the qualified remittance transfer provider will distinguish such an international investor will be a key point of deliberation. ADVERTISEMENT It will be interesting to see how the law will shape up soon, as Senators work on developing changes to the Bill prior to placing it before the Senate later this month for approvalThe Bill does mention the Effective Date for this new Remittance Transfer Excise Tax as being with respect to transfers made after December 31, 2025. Similarly, tax credits, if available, shall apply to taxable years ending after December 31, 2025 NRIs historically have remitted funds earned in the US either back to India or invest them outside the US. In both scenarios, they will now have to pay 3.5% Remittance Transfer Excise Tax on any amounts which they remit after December 31, 2025 This may activate a stream of outflow of money from US accounts by NRIs and other immigrants to their home countries or locations outside US to sidestep trigger of aforesaid tax. We anticipate families initiating planning for historical funds prior to the changes being implemented as well as restructuring their present account holdings outside US. However, post December 31, 2025 this window gets closed especially for individuals who generate regular income in US, who will have no choice but to pay this taxOn a separate note, the Bill puts at rest a constant debate on the sunset clause for US Estate and Gift Tax Exemption amount. Under the proposed Bill, the original exemption amount of USD 5,000,000 has been substituted with USD 15,000,000 making it effective for taxable years beginning after December 31, 2025. This will be a relief for many US Persons who are concerned that the current limits of USD 13.99 million will stand reduced to the original number of USD 5 million. With the introduction of the revised provisions this fear will lay at rest as the government now has proposed scaling up the base limit to USD 15 million with future adjustments for inflation Given the constantly evolving cross border legal and tax landscape, Indian HNIs and family businesses need to reassess their global financial planning. As cross-border tax regimes tighten, having structured, compliant platforms becomes critical. The US will continue to be a desired location for Indians while the UK remains a viable wealth gateway, particularly with recent Free Trade Agreement (FTA) gains, but each jurisdiction now carries unique tax implications that must be managed prudently and in a compliant manner with proper planning and advice. (The author is MD, Wealth Planning & Family Solutions, LGT Wealth India) (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

India and Kyrgyzstan's BIT comes into force, strengthen economic ties
India and Kyrgyzstan's BIT comes into force, strengthen economic ties

India Gazette

time16 hours ago

  • India Gazette

India and Kyrgyzstan's BIT comes into force, strengthen economic ties

New Delhi [India], June 5 (ANI): The new Bilateral Investment Treaty (BIT) between India and the Kyrgyz Republic comes into force on Thursday, marking a significant milestone in their bilateral economic relations. Union Minister for Finance and Corporate Affairs Nirmala Sitharaman and Minister of Foreign Affairs of the Kyrgyz Republic, Zheenbek Kulubaev Moldokanovich signed the Protocol and exchanged Instrument of Ratification of the Bilateral Investment Treaty (BIT) in New Delhi. According to Ministry of Finance, 'the Bilateral Investment Treaty (BIT) signed on 14th June, 2019, in Bishkek, between the Government of the Republic of India and the Government of the Kyrgyz Republic, enters into force with effect from today, i.e. 5th June 2025. This new BIT replaces the earlier agreement enforced on 12th May 2000, ensuring continuity in the protection of investments between the two nations.' The aim of this BIT is to promote and protect the interests of investors from both countries within each other's territories. The treaty incorporates several key features designed to create a balanced framework for investment. It highlights that the importance of sustainable development. Additionally, it also provides an enterprise-based definition of assets with an indicative inclusion list and a specific exclusion list, clarifying characteristics of investments such such as capital commitment, expectation of gain, risk assumption, and significance for the host state's development The treaty excludes matters relating to local government, government procurement, taxation, services supplied in the exercise of governmental authority, and compulsory licenses, thereby retaining sufficient policy space for the government. The BIT defines the core elements of the Treatment of Investment, aligning with customary international law, and includes provisions on national treatment, expropriation, and transfers. It also focus on matter related to removal of Most Favored Nation (MFN) clause, general and security exceptions and calibrated investor-state dispute settlement. 'The BIT balances the investor rights with the sovereign regulatory powers of both countries, and reflects a shared commitment to create a resilient and transparent investment climate. It is expected to further encourage cross-border investments and deepen economic cooperation between India and Kyrgyzstan,' the minstry of Finanace said. (ANI)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store