The UK government published a new Statement of Changes in Immigration Rules on 14^th March 2024. This Statement sets out some of the significant reforms previously announced by the government as part of its five-point plan to cut net migration and curb abuse of the immigration system.

The changes outlined in this statement primarily concern:

Changes to the Skilled Worker route, including an increased general salary threshold and higher ‘going rates’ for specific occupations.
Consequential changes to salary requirements for other work routes.
Changes to the minimum income requirement under the partner routes.

Below is a brief summary of the main changes outlined in the statement.

Skilled Worker Route Changes

Increased general salary threshold and ‘going rates’

Sponsoring employers must pay Skilled Workers at least a general salary threshold or the ‘going rate’ for the individual occupation, whichever is higher.

This statement confirms an increase in the general salary threshold under the skilled worker route from £26,200 (based on 25^th percentile UK earnings in eligible occupations) to £38,700 (based on median UK earnings in eligible occupations) with effect from April 4 2024.

The going rates are also increased from the 25^th percentile to the median. Moreover, These increased thresholds and going rates are based on the latest Office for National Statistics (ONS) pay data.

New Salary Requirement for Health and Care Workers

The new median salary requirements do not apply to sponsored workers under Health and Care visas or occupations where going rates are determined by national pay scales.

Based on the latest ONS pay data, a general threshold continues to apply, and is being increased from £26,200 to £29,000, based on the latest ONS pay data. Going rates are also being updated based on the latest ONS pay data and/or the latest available national pay scales.

New Immigration Salary List

A new immigration Salary List (ILS) replaces the Shortage Occupation List (SOL). It clarified that it lists those entries where the government considers it logical to offer a discounted salary threshold instead of listing all occupations experiencing labour shortages. The independent Migration Advisory Committee (MAC) carried out a review, of information on all those comprising the new list. A full review of the list is scheduled for later this year by MAC.

As with the previous list, included occupations have a 20% discount to the general salary threshold (to £30,960 or £23,200, depending on whether they would otherwise be subject to the £38,700 or £29,000 threshold). However, the previous 20% discount to the going rate requirement is being removed.

Update of the Standard Occupational Classification (SOC) code system

The standard Occupational Classification (SOC) code system, used in the immigration system, also encompasses updates from SOC 2010 to SOC 2020. This depicts that some SOC codes regularly used by some employers will change, so they are advised to issue any Certificates of Sponsorship from April 4 using the new coding system.

Transitional arrangement 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.

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. 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.

New Salary Requirement for other work routes

According to the latest ONS pay data, the salary requirements for other work routes are being updated. Listed below are increased general salary thresholds for other work routes:

Under the Senior or Specialist Worker (Global Business Mobility) route: from £45,800 to £48,500.
Under the Graduate Trainee (Global Business Mobility) route: £24,220 to £25,410.
Under the Scale-up route: £34,600 to £36,300.
For certain poultry workers in the Seasonal Workers route: £26,200 and £10.75 per hour to £38,700 and £15.88 per hour. These workers must be paid in line with skilled workers.

Increase in the Minimum Income Requirement under the partner route

The statements lay out the planned hike to the Minimum Income Requirement for those in the 5-year partner and child routes under Appendix FM. According to the Home Office, this minimum income requirement has remained the same for more than a decade, which does not depict the income level a family requires to be self-sufficient and independent of public funds.

Effective April 11, 2024, this change forces £29,200 as the new minimum income requirement for incoming applicants through this route. This move demonstrates the first step in aligning the route’s financial requirements with the new minimum general salary threshold for skilled workers. A separate child element to the minimum income requirement is also removed. This is to ensure equal treatment is given to British nationals compared to migrants, who are required to meet the General Skilled Worker threshold at a flat rate, regardless of sponsoring any children.

However, transitional arrangements are being granted for those holding a Family Visa before April 11 2024, under the fiancé, proposed civil partner, five-year partner route, or those who applied before this date.

Once an applicant meets the minimum income requirement (MIR), they must meet the same MIR through settlement on the route, provided the applicant is applying to stay with the same partner.

The same will be the case for children seeking to join a parent. These measures deliver certainty for applicants already within the route or those applying before the increase occurs.

Employers need to quickly consider prospective candidates and assign CoS, whenever possible, prior to April 4, 2024. Employers must take prompt action, especially considering the ongoing processing delays that may impede the completion of preliminary procedures like obtaining a certificate of sponsorship.

When submitting an application for and issuing Certificates of Sponsorship, businesses should be extremely careful. There may be a risk of confusion and refusals in immigration initial and extension applications for their employees. It's important to keep this in mind because licence holders who fail to fulfil their sponsor compliance duties run the risk of having their licence revoked.

The going rate is still determined by taking into account the number of hours a migrant works; however, as the calculations are still based on a 37.5-hour work week, this aspect is left intact.

Since the definition of "new entrants" has not changed and they are still eligible for a salary threshold discount, employers could consider recruiting "new entrants" who have not yet entered the route.

For expert advice regarding the immigration route, please contact us on 0203 865 6219 or leave a message on our website.