How can employers in the care sector navigate the impact of tighter visa restrictions?

The UK’s care sector is facing an unprecedented crisis due to an 82% drop in visa applications for health and social care roles since July 2023, according to the latest figures from the Home Office. This sharp decline is a direct result of the government’s recent policy changes, notably the ban on overseas care workers bringing family dependents. For many potential applicants, this restriction makes the UK a less attractive destination, especially for those unwilling to face prolonged separation from their families.

The decline in overseas care workers is not solely due to this policy – the cost-of-living crisis has further compounded the problem. The inability to bring a second household income from a spouse or partner makes the financial realities of living in the UK even more daunting for overseas workers, discouraging many from applying. This situation is further heightened by the rising costs for essentials such as housing, utilities, and food, which has significantly eroded the disposable income of lower-wage workers.

Increased compliance and oversight by the Home Office

Another key contributor to the reduction in visa applications is the increased scrutiny and compliance demands placed on employers by the government. Since late 2023, the Home Office has intensified its oversight of sponsorships in the care sector, resulting in lengthy processing delays and onerous evidentiary requirements. Employers must now submit extensive documentation, including rotas, contracts, and staff details, often with very little notice. These demands have overwhelmed many care providers, leading to delays in hiring and - in some cases - the suspension or revocation of sponsor licences.

The increased frequency of compliance visits from the Home Office has further strained employers, who are already struggling to maintain adequate staffing levels. Home Office visits can lead to significant disruptions in business operations, especially if they result in the suspension of a licence, which halts all further sponsorship and delays for pending visa applications.

What are the impacts of the Home Office’s increased scrutiny?

The changes to visa regulations have had a major effect on recruitment within the care sector. With a large number of vacancies remaining unfilled, the sector is struggling to provide essential services to vulnerable people. Despite some arguments that the drop in visa applications could reflect a ‘natural correction’ following the initial surge in demand when the sponsorship system first opened to care workers, the persistent high vacancy rates suggest that the need for overseas workers remains critical.

The combination of restrictive immigration policies, economic challenges, and increased regulatory burdens has created a perfect storm, which threatens the ability of care providers to meet the growing demand for services.

Proactive solutions for employers

To navigate these challenges, care providers must take proactive steps. Employers need to ensure they have adequate resources to manage their sponsorship and Home Office interactions. Remaining vigilant of any abuse or mismanagement of the system and workers is crucial. Instructing a business immigration solicitor to assist with visa applications, compliance visits, and licence management can help mitigate risks and ensure businesses remain in good standing with the Home Office.

Adopting robust recruitment practices and providing comprehensive support to overseas workers (eg assistance with accommodation, training, and relocation expenses) can also help businesses to retain and attract talent. It’s also important to note that despite the recent increase in visa salary thresholds, care workers still benefit from discounted rates under the Immigration Salary List.

What are the long-term considerations?

Looking to the future, while the Labour government is planning to build a domestic workforce here in the UK through its Fair Pay Agreement and the launch of Skills England, it’s unlikely these initiatives will have any immediate results. It could take years to train and recruit enough domestic workers to fill the current gaps in the care sector, so the reliance on foreign workers is crucial and will likely continue. To ensure that care providers can maintain services during this transitional period, it’s important that the visa system is adapted to better support the sector’s needs.

It's clear that the care sector in the UK is at a critical juncture. The combined pressures of restrictive immigration policies, economic challenges and regulatory burdens have led to a significant reduction in the number of overseas care workers, which is jeopardising the sector’s ability to meet increasing demand.

We’re here to help

As demand for care sector services grows, we recognise that keeping your operations running smoothly is integral to the success of your business.

We’re here to guide you through the challenges brought about by the tightening of visa regulations. From managing visa applications to mock compliance audits and HR trainings, we can provide you with tailored legal support to help your care business thrive amidst the complexities of changing regulations.

Our webinar on the challenges of employing foreign workers in the care sector is also available to watch on demand.