By Kris Billington, Director at McEwan Wallace
Last week, the government announced a series of sweeping changes to the UK's immigration system—changes that could have a significant impact on how businesses hire and plan their workforce in the months and years ahead.
Whether you currently recruit from overseas or not, these reforms mark a clear shift in how the UK intends to manage its labour market. Here's a breakdown of what's changing, and why it matters to your business.
Hiring from Overseas is About to Get Tougher
If your business sponsors skilled workers from outside the UK—or has considered doing so—this update is particularly important.
The key points include:
- Tighter definition of 'skilled workers': Only roles at graduate level or above will qualify under the skilled worker route.
- Rising salary thresholds: Minimum salary levels are being increased, meaning businesses will need to offer higher pay to secure overseas talent.
- Abolition of the shortage occupation list: This list previously allowed for certain roles to be filled at lower salaries. It's being scrapped in favour of a more targeted system.
- Focus on long-term shortages only: Moving forward, immigration will only be an option for roles facing long-term shortages and where there is a plan to train UK workers to fill them in the future.
In short, unless the role is highly skilled and in short supply, recruiting from overseas is likely to become more expensive and less accessible.
Social Care Sector Hit Especially Hard
One of the biggest changes is aimed squarely at the care sector. The government plans to end overseas recruitment for social care roles by 2028. While those already here on care visas can stay, no new applications will be allowed.
This means that care providers—already facing major recruitment challenges—will need to rethink their workforce strategy now, and invest in attracting and training local staff.
A Push to Train and Hire Locally
The government is also introducing new requirements to boost domestic training. This reinforces a long-term policy direction: developing home-grown talent rather than relying on immigration to fill skills gaps.
Fewer International Graduates in the Job Market?
Another notable proposal is a reduction in the post-study work period for international graduates—from two years to just 18 months. Universities will also face stricter rules for sponsoring students, potentially shrinking the pool of international talent entering the UK job market.
If your business has previously hired graduates from overseas, this could affect your future recruitment pipeline.
A Silver Lining for High-Growth Sectors
There is some good news, particularly for businesses in high-growth, high-skill industries. The government has indicated it wants to make it easier for top global talent to come to the UK in fields such as science, tech, and design.
If you're in one of these sectors, you may still find routes to attract international experts, even amid these wider restrictions.
What Should Businesses Be Doing Now?
Even if you don't hire internationally, these changes will have ripple effects across the UK labour market. Competition for talent could increase, and planning ahead will be more important than ever. Here are three steps we'd recommend:
- Focus on your existing team: Look at how you can train, promote, or develop your current staff.
- Review your workforce strategy: If you're planning to grow, consider how these changes could affect your recruitment pipeline.
- Stay informed: These changes will roll out gradually, so keeping up with the latest developments will be key.
At McEwan Wallace, we're already working with clients to help them understand what these changes mean for their businesses and plan accordingly. If you'd like to discuss how your business could be affected—or need support with workforce planning — please don't hesitate to get in touch.