UK businesses are now required to pay overseas workers coming to the UK on a Skilled Worker visa significantly more, as the government clamps down on cut price foreign labour and continues to deliver on its commitment to drive down net migration.  

Part of a robust and fair package of measures announced by the Home Secretary in December, which will mean 300,000 people who arrived in the UK last year would now not be able to, the general salary threshold for those arriving in the UK on a Skilled Worker visa has now increased by 48%, from £26,200 to £38,700. 

This increase will help ensure the UK’s immigration system focuses on recruiting high-skilled workers, helping to grow the UK economy while bringing overall numbers down.  

The government is clear that no sector should be permanently reliant on immigration, so today, the shortage occupation list has also been abolished, with employers no longer able to pay migrants less than UK workers in shortage occupations.  

A new immigration salary list (ISL) has been created, following advice from the expert and independent Migration Advisory Committee (MAC). Roles on the list will only be included where they are skilled and in shortage, and if it is sensible to include them considering the efforts being made by sectors to invest in the resident workforce.  

Inclusion on the list must not serve to reduce pay and undermine the recruitment of British workers. Employers are encouraged to invest in training, upskilling, and hiring domestic workers first. 

It comes as the government takes decisive action to support British people into work, in one of the biggest employment interventions in a generation, through its £2.5 billion Back to Work plan. This will help break down barriers to work for over a million people who are long term unemployed, long term sick, or disabled.

Home Secretary James Cleverly said: 

It’s time to turn off the taps and end the flow of cheap workers from abroad. Mass migration is unsustainable and it’s simply not fair. It undercuts the wages of hard-working people who are just trying to make ends meet. 

We are refocusing our immigration system to prioritise the brightest and best who have the skills our economy needs, while reducing overall numbers.

I promised the British people an immigration system that serves their interests, and to bring numbers down - these tough measures deliver on that commitment. Employers must also play their part and put British workers first.

Work and Pensions Secretary Mel Stride said: 

For too long we have relied on labour from abroad when there is great talent right here in the UK.

I’m determined to give jobseekers the support they need to get on and get ahead through our £2.5 billion Back to Work Plan, while our network of Jobcentres are providing apprenticeships, bootcamps, and skills programmes to help even more people into work.

The changes coming into force today coupled with my next generation of welfare reforms will unlock the huge potential of the great British workforce.

The government has put in place an accelerated and comprehensive programme of reforms to address unsustainable numbers of legal arrivals in the UK.  

In January, the government ended the ability of nearly all postgraduate students to bring dependants to the UK. A drastic fall in student dependant applications is expected this year, with early indications already of this downward trend.

Last month, reforms to restrict care workers from bringing family members came into force. An estimated 120,000 dependants accompanied 100,000 workers on the route in the year ending September 2023, who would now not be able to come. 

Care providers are also now required to register with the Care Quality Commission, the industry regulator, if they are sponsoring migrant care workers. This follows clear evidence that care workers have been offered visas under false pretences, having been recruited for jobs that don’t exist or being paid far below the minimum wage required for their work. 

The Home Secretary has also commissioned a review of the Graduate route for international students to prevent abuse, protect the integrity and quality of UK higher education, and ensure it works in the best interests of the UK. 

The Migration Advisory Committee (MAC) will review the demand for the Graduate route, through which a total of 213,250 visas have been granted since it was established, to ensure it is fit for purpose and focused on attracting the best and brightest to the UK. 

This follows concerns raised after analysis by the MAC revealed that the number of international postgraduate students attending institutions with the lowest UCAS entry requirements has increased by over 250% between 2018 and 2022. It is expected to report later this year. 

On 11 April, the first step in an incremental increase to the minimum income required for Family visas will come into force. By early 2025, this will have reached £38,700, helping to ensure dependants brought to the UK are supported financially. 

The government’s plan to tackle illegal migration is also working, with small boat crossings down by around a third last year. Illegal migration is an international challenge the government is tackling on all fronts, including working with international partners and clamping down on the criminal gangs with stepped-up enforcement.