Recent updates to the UK’s immigration policy have brought significant changes to the Skilled Worker Route and the Sponsor Licence framework. These reforms focus on refining salary thresholds for sponsoring skilled workers, replacing the previous shortage occupation list with a new Immigration Salary List, and updating the Standard Occupational Classification codes from 2010 to 2020. Additionally, modifications to the Sponsor Licence process, including renewal requirements and compliance measures, aim to streamline the sponsorship framework for employers. Together, these changes seek to enhance the UK’s capacity to attract and retain skilled talent while meeting the needs of various sectors.
Key Changes to the Skilled Worker Route in 2024
New General Salary Threshold
The general salary threshold, which was previously £26,200, has been increased to £38,700. The hourly rate minimum has been increased from £10.75 to £15.88 per hour. For the purposes of sponsorship, all three of the following must be met:
- General Salary of £38,700 (floor salary)
- Salary under the relevant SOC 2020 occupation code
- An hourly rate of £15.88
Reduction to Salary
The provision for a reduced salary for new entrants to the labour market remains; however, the general salary has been increased from £20,960 to £30,960, and the minimum hourly rate is now £11.90 per hour. The concession of a 70% reduction to the salary under the occupation code also remains. To calculate the minimum salary applicable to a new entrant applying for a Skilled Worker Visa after 4 April 2024, all of the following must be met:
- General Salary of £30,960 (floor salary)
- 70% of the salary under the relevant SOC 2020 occupation code
- An hourly rate of £11.90
Similarly, the provision for PhD holders is unaffected, and a reduction of 10% to the salary will apply for those who hold a PhD in a subject relevant to the job. A reduction of 20% applies for those who hold a PhD in a relevant STEM subject to their role. The applicable codes will be the SOC 2020 codes. The minimum general salary when relying on a PhD concession will increase to £34,830 for those with a PhD relevant to their job and £30,960 for those who hold a relevant PhD in a STEM subject.
Immigration Salary List
The new rules have made the shortage occupation list redundant, and it has been replaced with the Immigration Salary List. There are a total of 23 occupation codes under this new list. All roles that come under a code on this list will benefit from a general salary of £30,960 and a 20% reduction of the salary given under the code in the SOC 2020 list of codes. The minimum salary when sponsoring on or after 4 April 2024, under a code that appears on the Immigration Salary List must meet both:
- General Salary of £30,960 (floor salary)
- 80% of the salary under the relevant SOC 2020 occupation code
Sponsored Prior to April 2024
Individuals with a certificate of sponsorship issued on or before 3 April 2024 can use it for their Skilled Worker Visa application. Those who held a Skilled Worker Visa prior to this date and wish to extend or change their employment will have a reduced general salary of £29,000, but it must meet the minimum salary under the relevant SOC 2020 codes, which are higher than the previous codes.
For extensions or switches, the new entrant concession will increase the general salary from £20,960 to £23,200, with a 70% reduction based on the relevant SOC 2020 code. PhD holders will receive a 10% reduction for relevant roles and a 20% reduction for STEM PhDs, with general salaries set at £26,100 for relevant PhDs and £23,200 for STEM PhDs.
For roles on the Immigration Salary List, a minimum salary of £23,200 applies, with an 80% reduction under the relevant SOC 2020 codes. The hourly rate for those sponsored before 4 April 2024 will rise to £11.90. These salary structures are applicable for Skilled Worker Visa holders extending or changing employment before 4 April 2030.
Health and Care Workers
There are 10 SOC 2020 occupation codes that will qualify for a Health and Care Worker Visa. For any roles that meet all of the criteria for a Health and Care Worker Visa, a general salary of £23,200 and a minimum hourly rate of £11.90 per hour will apply.
Key Changes to the Sponsor Licence in 2024
Key Changes to Sponsorship Licence Renewals
According to the latest Home Office update, from April 2024, the necessity to renew the sponsor licence every four years is abolished. Sponsor licences expiring on or after 6 April 2024 will be automatically extended for an additional 10 years. However, licences set to expire before this date must follow the existing renewal process. Before this update, sponsor licences were valid for four years, requiring timely renewals to avoid expiration.
The Sponsor Licence Application Process
The application process for a UK sponsor licence is stringent, necessitating a robust compliance regime to maintain the licence. This involves ensuring that your HR processes align with Home Office requirements. To streamline your application and increase your chances of success, consider instructing a leading law firm. Their expertise in preparing and submitting sponsorship licence applications and Skilled Worker Visa applications can significantly benefit your business.
Sponsor Licence Requirements
To qualify for a sponsor licence, your business must:
- Operate genuinely and lawfully within the UK.
- Be based in the UK.
- Not pose a threat to immigration control.
- Have key personnel who are “honest and dependable.”
- Maintain an efficient HR system to meet ongoing obligations as a licensed sponsor.
Business Eligibility
Businesses must be genuine and legally operating in the UK as a PLC, Ltd, LLP, or Sole Trader. This includes having a UK presence, such as a company incorporated with Companies House, and holding appropriate planning permissions. Start-ups operating for less than 18 months must provide evidence of a corporate bank account with an FCA and PRA-registered UK bank. Depending on the sponsor licence type, additional requirements may apply.
Suitability Requirements
Applicants must demonstrate they are reliable and capable of fulfilling sponsor responsibilities. Specifically, businesses must:
- Have suitable HR systems in place.
- Be prepared for UKVI compliance visits at any time.
- Have no unspent criminal convictions for immigration offences or tax evasion.
- Show no evidence of non-compliance with previous sponsorship licences.
- Not have had a sponsor licence revoked in the past year.
Genuine Business Requirements
Businesses must prove a genuine need to hire overseas workers by meeting the genuineness test for sponsorship. This involves showing intent to sponsor workers for eligible roles, meeting skill and salary requirements, and providing details about the roles and potential candidates. Although not mandatory, detailed recruitment information can strengthen the application.
Key Personnel Requirements
The UKVI will require details of key personnel, who must be British, free of unspent criminal convictions, on the payroll, and not related to the candidate. Key personnel roles include:
- Authorising Officer: A senior person responsible for the licence and immigration issues.
- Key Contact: The main liaison with the Home Office.
- Level 1 & 2 Users: Individuals managing the SMS system daily.
The proposed changes to the Skilled Worker Route signify a major shift in UK immigration policy, focusing on salary thresholds for sponsoring skilled workers. While the government argues these changes modernize the system to meet economic needs, they fail to address the challenges for UK employers who may struggle to sponsor workers without offering higher salaries. Additionally, removing the four-year sponsor licence renewal requirement raises compliance oversight concerns. Disparities between resident and sponsored worker salaries could further complicate recruitment. With persistent talent shortages and roles that local workers are reluctant to fill, the UK Government must recognize the need for adjustments to these new regulations.
A2Z Immigrations is here to help you navigate these developments. Our expert team specializes in providing tailored support for skilled worker visas and sponsor licenses, ensuring that you remain compliant with the latest regulations. With our in-depth knowledge and experience, we can guide you through the complexities of the application process, helping you make informed decisions that best suit your needs. Contact us today to ensure a smooth transition during this period of change.
Business Immigration Services: How Our Immigration Solicitors Can Help
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