UK immigration update: What the July 2025 changes mean for your business

Appendix Skilled Worker

Salary Thresholds

The first important change is an increase across the board in terms of the salary requirements under the Skilled Worker route:

• The general minimum salary which must be met by all individuals under the Skilled Worker route will increase from £38,700 to £41,700
• The "going rate" for eligible SOC codes will also increase. Employers should refer to tables in the Statement of Changes for the relevant new rates, however there appears to be an average increase of 6% to each SOC code
• The discounted salary rate (for new entrants including graduates and Immigration Salary List roles) to increase from £30,960 to £33,400

Impact on Existing Workers

In terms of the impact on existing sponsored workers, there will be an increase to the general minimum salary for those already on the Skilled Worker route prior to 22 July 2025 from £29,000 to £31,300.

Skill Level Increase

The skill level for roles under the Skilled Worker route has been increased from RQF 3 to RQF 6, or from approximately A-Level to graduate level.

While the required skill level under the Skilled Worker route was previously set at RQF 6 pre-2020, it was reduced to RQF 3 following the UK's departure from the EU to assist businesses in adapting to the end of free movement between the UK and EU. This marks a major shift, raising the bar for eligible roles from A-level to graduate level qualifications, which will see a reduction in the number of roles eligible under the Skilled Worker route by around 180 eligible occupations.

While this is of course concerning for employers, the Home Office have advised that this change will not affect those currently on the Skilled Worker route in roles below RQF level 6. However, they have noted that these transitional arrangements will not be in place indefinitely and will be reviewed in due course. 

Immigration Salary List and Temporary Shortage List

The existing Immigration Salary List will be replaced by a Temporary Shortage List.

The purpose of the existing Immigration Salary List is to address labour shortages identified by the Government and provides discounted salary rates to assist employers in getting workers into these roles. However, the Statement of Changes has confirmed a phasing out of this, and it will be replaced by the Temporary Shortage List.

The Home Office have advised that there will be a phasing out of roles currently on the Immigration Salary List with the removal date for roles varying from 31 December 2026 at the earliest until 22 July 2028. However, the Home Office has advised that they reserve the right to bring these dates forward if they become aware of any compliance issues.

In the meantime, the Temporary Shortage List provides additional roles lower than RQF 6 which have been identified as having a shortage in the UK employment landscape. These roles will only be eligible if certificates of sponsorship are assigned before 31 December 2026. The future contents of the Temporary Shortage List will be reviewed and subject to change depending on what sectors the Government deems as requiring assistance via the Temporary Shortage List.

Other changes

• Restrictions on dependants: Workers sponsored in occupations on the Immigration Salary List or Temporary Shortage List which are at RQF levels 3-5 will no longer be able to bring dependants. However, this does not apply to occupations at RQF 6 or above, or workers sponsored in occupations at RQF levels 3-5 who are already on the Skilled Worker route and able to bring dependants before these changes come into effect.
• Closure of care workers: People will no longer be able to come to the UK as care workers and senior care workers (occupation codes 6135 and 6136) and these roles will be closed to entry clearance applications from 22 July 2025. For those already in the UK, applications under these codes must be made before 22 July 2028 and the individual must have been legally working for the sponsor for 3 months prior to the date of application.
• GBM Senior or Specialist Worker salary increase: Increase to the general minimum salary from £48,500 to £52,500.
• ILR salary thresholds: There will be an increase to the general minimum salary required for settlement in the UK:
  • This has increased from £38,700 to £41,700 for those with their first permission under the Skilled Worker route on or after 04 April 2024.
  • This has increased from £29,000 to £31,300 for those granted permission under the Skilled Worker route before 04 April 2024 and applying for ILR before 04 April 2030.

Future changes expected?

The current Statement of Changes does not make mention of the White Paper proposals regarding changes to the period of time in the UK required to apply for settlement or changes to the Graduate route. However further changes are expected later this year. We will update clients as we hear about these.

How can I deal with the changes?

The upcoming changes will apply to all Skilled Worker applications submitted on or after 22 July 2025. To mitigate disruption, we recommend employers take the following proactive steps:

• Review current workforce: Employers should review their current worker population to identify anyone who may be affected by the new skill or salary thresholds. If any employees are at risk of falling outside the new criteria, consider submitting extension or change-of-employment applications before the new rules take effect.
• Prioritise applications for new entrants and graduates: Due to the increased salary requirements for new entrants and graduates, employers may wish to consider getting Skilled Worker applications in early for these applicants switching to benefit from the current lower salary requirements.
• Assess upcoming recruitment plans: If you anticipate hiring new staff in the coming months, evaluate whether those candidates will meet the new requirements. Where possible, consider bringing forward start dates or submitting applications early to avoid disruption.
• Review long-term workforce strategy: Employers should further consider their future hiring and growth plans to assess any impact due to the skill level and salary increases.

These reforms mark a significant shift in the UK’s immigration strategy, with far-reaching implications for recruitment, workforce planning, and compliance. By taking proactive steps now, businesses can position themselves to remain agile, competitive, and compliant in an evolving regulatory environment.

Please do not hesitate to reach out to our team if you would like to discuss any of the upcoming changes and how we can assist with forward planning in light of these.