New sponsorship salary thresholds and other significant changes announced

As part of the Home Secretary’s five-point plan to reduce net migration, yesterday the Home Office published its Statement of Changes in Immigration Rules HC 590 which spans nearly 300 pages.

These changes are some of the most significant changes to the Immigration Rules we have seen since the Conservative Government’s introduction of the “new Points-Based Immigration System” which came into force from 1^st January 2024.

Our Immigration team summarises the key changes which businesses and individuals should note will take effect from 4^th and 11^th April 2024 (other specific commencement dates noted below).

Key Immigration Changes from 4 April 2024

From 4 April 2024, the following will take effect:

• Increase in the general salary threshold for Skilled Workers from £26,200 to £38,700.
• Increase in the general salary threshold for Global Business Mobility: Senior or Specialist Workers from £45,800 to £48,500.
• Replacement of the current Shortage Occupation List (SOL) with the Immigration Salary List (ISL).
• Increase in the “going rates” for individual occupations for both the Skilled Worker and GBM SS routes.
• The scope of supplementary employment for those on the Skilled Worker category has been expanded to include all occupations that are eligible for the route.

Changes to the Skilled Worker route

The key changes to the route are as follows:

1. The general salary threshold for Skilled Workers will be increased from £26,200 to £38,700 (a 48% increase). The reductions in general salary thresholds for new entrants, and holders of relevant PhD qualifications will remain but will also be updated to £30,960.
2. Those applying for a Health and Care visa will not be subject to the new general salary threshold. However, they will be subject to an increased general threshold of £29,000. Furthermore, the going rates are also going up based on the latest ONS pay data and/or the latest available national pay scales.
3. The Immigration Salary List (ISL) will replace the current Shortage Occupation List (SOL). The same 20% discount on the general salary threshold will apply (this being £30,960), however applicants will no longer benefit from a 20% discount on the going rate for their individual occupations. The Migration Advisory Committee (MAC) is due to undertake a full review of the list later in 2024.
4. The allowance of supplementary employment under the Skilled Worker route will be broadened for supplementary work in all occupations that are eligible for the route (SOC 2020 occupation codes listed in Tables 1, 2 or 3) – Skilled Workers who wish to undertake supplementary work will therefore no longer be limited to a role that falls within the same occupation code as their main employment or to a role on the IS However, when an individual can undertake such work and the maximum permitted hours of supplementary work per week remain unchanged.
5. The going rates for individual occupations will also be raised. However, changes which are seemingly contrary to initial expectations will also be introduced.

Will the new salary rates affect those individuals already on the Skilled Worker route?

In a departure from the Home Office’s own factsheet published in February 2024 in which it was announced that “those already in the route before the Rules changes are exempt from the new Skilled Worker salary requirements when they change employer, extend, or settle” will also be introduced. Skilled Workers already on the route before 4 April 2024 will be required to meet new increased going rates (see SOC 2020 – Table 2) for their individual occupations if switching employers, extending or settling under the route. These transitional arrangements relating to SOC codes and salary in Skilled Worker and the other relevant routes will generally end for applications made on or after 4 April 2030.

From when and who will the new changes apply to?

The Statement of Changes makes clear that the new rules will not apply to those who make a Skilled Worker visa application with a Certificate of Sponsorship (CoS) that was issued before 4 April 2024. This means that Skilled Worker applicants who submit their applications after 4 April 2024 with a CoS that was issued before 4 April 2024, will therefore only need to meet the pre-4 April salary threshold of £26,200 (but only for the current application at hand).

Businesses holding a Sponsor Licence are therefore encouraged to assign a Certificate of Sponsorship before 4^th April 2024 if they wish to rely on the current rates of pay for sponsored workers.

The below table provides some examples demonstrating the % increase to the relevant SOC going rate. The full list to Table 1 SOC 2020 (based on median UK earnings in eligible occupations) can be found here:

SOC 2010	SOC 2020	Job type	Current going rate (£)	New going rate (£)	% increase
1115	1111	Chief executives and senior officials	59,300	84,100	41.82%
1122	1122	Production managers and directors in construction	35,700	50,100	40.34%
2135	2133	IT business analysts, architects and systems designers	37,600	51,700	37.50%
2136	2134	Programmers and software development professionals	34,000	49,400	45.29%
2423	2431	Management consultants and business analysts	32,000	48,000	50.00%
2436	2455	Construction project managers and related professionals	29,500	40,500	37.29%
3534	2422	Finance and investment analysts and advisers	28,600	40,600	41.96%
3545	3556	Sales accounts and business development managers	35,100	52,500	49.57%

 

Changes to the Global Business Mobility: Senior or Specialist Worker route

The key changes to the route are as follows:

1. The general salary threshold for GBM SS Workers will be increased from £45,800 to £48,500 (a 6% increase).
2. The going rates for individual occupations will also be raised.

Similarly, the new rules will not apply to those who make a GBM SS visa application with a Certificate of Sponsorship (CoS) that was issued before 4 April 2024. This means that GBM SS applicants who submit their applications after 4 April 2024 with a CoS that was issued before 4 April 2024, will therefore only need to meet the pre-4 April salary threshold of £45,800 (provided they have been employed by their overseas employer for the requisite period of time).

Immigration Changes from 11 April 2024

The changes from 11 April 2024 mainly affect the partner route and are as follows:

1. The minimum income requirement under the partner route will increase from £18,600 to £29,000. For those who are already on the partner, fiancé(e) or proposed civil partner routes, or those who apply for these routes before 11 April 2024, this new minimum income requirement will not Instead, provided applicants are applying to stay with the same partner, they will be required to demonstrate they continue to meet the same minimum income requirement contained within their initial application at extension and settlement stages. This means that those who were required to meet the extra child element to the minimum income requirement will be have to continue to meet this criteria.
2. The separate child element to the minimum income requirement will be removed. This means a couple, a family of three and a family of five will all equally be required to demonstrate that they meet the £29,000 minimum income requirement.

Our thoughts

The immigration changes that are due to take effect in April 2024 will no doubt have a significant impact on businesses and individuals alike. Taking into consideration that IHS fees from increased 6 February 2024, business and individuals considering future applications may wish to not only accelerate recruitment plans and submit applications before the upcoming salary and minimum income threshold increases come into effect but also to consider the impact the upcoming changes will have on current sponsored employees and future employment plans.

Our Immigration team will continue to decipher the substantive changes and provide further updates on these key changes whilst addressing any concerns about the impact such changes may have on businesses and individuals alike.

If you require assistance or further information regarding upcoming changes, please do not hesitate to contact the Head of Immigration, Sundeep Rathod.

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