UK Immigration Reforms 2025: Key Updates for Employers

The UK government continues to overhaul the business immigration system. Its latest round of change, published in July 2025, introduces wide-ranging restrictions that will directly impact sponsor licence holders and employers hiring overseas talent.

If you are an employer sponsoring overseas talent, it is vital to understand these updates and their potential impact on your workforce planning.

Skilled Worker visa: higher skill threshold

From 22 July 2025, the minimum skills threshold for the Skilled Worker visa will increase from RQF Level 3 (A-level equivalent) to RQF Level 6 (graduate level). In practice, this means:

• Over 100 occupations previously eligible for sponsorship under Skilled Worker will no longer qualify.
• Employers seeking to sponsor roles below graduate-level will need to consider alternatives, such as the new Temporary Shortage List (TSL) or upskilling pathways.
• Transitional arrangements will allow existing Skilled Worker visa holders in sub-RQF Level 6 roles to continue in their positions if their visa was granted before 22 July 2025. However, these transitional arrangements will be reviewed and could change in the future.

What this means for employers: If you rely on sponsored workers in occupations below graduate level (eg technicians, some administrative staff, or skilled trades), you will need to urgently review your pipeline of roles and future recruitment plans.

Salary requirements: uprated across multiple routes

The salary thresholds for Skilled Worker, Global Business Mobility, and Scale-up routes have been updated in line with the latest Office for National Statistics earnings data. There are no transitional arrangements, meaning any applications made on or after 22 July 2025 must meet the new salary requirements immediately.

What this means for employers: You should check whether your current and planned salary offers remain compliant with the higher thresholds, especially where roles were previously close to the minimum.

Social care visa: major restrictions

Responding to reports of widespread exploitation and abuse, the government has:

• Closed the social care visa to out-of-country applications with immediate effect.
• Allowed in-country switching into the social care route until July 2028, providing a longer runway for those already working in the UK.
• Additionally, an individual will need to have legally worked for the sponsor employer for 3 months before being sponsored by them.

What this means for employers: If you are recruiting care workers from overseas, you will no longer be able to sponsor them from outside the UK. Only workers already in the UK may switch into social care until 2028. Employers will need to rethink their recruitment pipelines and consider upskilling existing staff.

Introduction of the Temporary Shortage List (TSL)

The new Temporary Shortage List is being introduced to give employers limited access to sub-RQF Level 6 roles where there are acute shortages. The TSL will:

• Run alongside the existing Immigration Salary List (which remains in place for MAC-identified shortage occupations at RQF Level 6 and above)
• Provide strictly time-limited access to sub-graduate-level roles
• Prohibit dependants for TSL-sponsored workers

What this means for employers: If you have an urgent need to fill roles below RQF Level 6, the TSL may provide a temporary solution. However, it is designed to be short-term only, and will carry restrictions such as the inability to bring family dependents.

Next steps

The July 2025 reforms represent a further tightening of the sponsorship system. In particular, employers should:

• Audit your sponsored workforce now to identify any roles affected by the RQF Level 6 threshold change.
• Check salary levels for compliance with the new, higher thresholds.
• Reassess recruitment pipelines for social care roles, where out-of-country recruitment is no longer possible.
• Consider if the Temporary Shortage List can meet any immediate gaps, but plan for its short-term nature.

If you would like a tailored review of how these reforms affect your business or support with updating your sponsor licence processes, please get in touch. Our specialist business immigration solicitors are here to help you navigate these significant changes.