What do the Increased Salary Thresholds Mean for Skilled Workers and Families?
In December 2023, the UK government, under the leadership of Home Secretary James Cleverly, announced an extensive plan aimed at significantly reducing net migration in the UK. This plan included a marked increase in the minimum salary thresholds for various visa categories, a move forming part of a wider strategy to manage the UK’s immigration levels in response to public concerns about high net migration.
The government’s initial proposal was to raise the minimum salary for skilled foreign workers from £26,200 to around £38,000. Simultaneously, for family visas, the income requirement for British citizens or settled residents wishing to bring family members to the UK was proposed to increase from £18,600 to a similar figure of £38,700.
However, this plan faced public backlash and extensive discussions, leading to a reassessment of the approach in January 2024. Following this, the government decided to adopt a more phased strategy for implementing these increases. The new approach aims to incrementally adjust the salary thresholds, considering the concerns raised and the potential impact on various sectors.
The revised strategy involves a more gradual increase in these thresholds. For skilled worker visas, the salary threshold is set to rise to £38,700, but this change will now be implemented in April 2024. It’s important to note that health and care visas, as well as other professions on national pay scales like teachers, will be exempt from this increase.
Those already on a Skilled Worker visa or who apply for one before the rules change in April 2024 will not be subject to the new £38,700 salary threshold when they change employment, extend, or settle. They will, however, be expected to show salary progression according to the latest pay data.
For family visas, the increase will be in stages, starting with a rise to £29,000 in the spring of 2024, then to £34,500 later in the year, and eventually reaching around £38,700 by early 2025.
What are the implications for Applicants and Employers?
The revised salary thresholds for Skilled Worker and Family visas will have significant implications for both applicants and employers in the UK.
For Skilled Worker Visa Applicants
The increase to £38,700 from April 2024 means that potential skilled workers from abroad will need to secure higher-paying jobs to qualify for visas.
Occupations like health and care workers and teachers, which have national pay scales, are exempt from the salary threshold increase, reflecting the government’s recognition of their essential roles.
Skilled workers already in the UK or those who apply before the April 2024, the changes won’t be subject to the new threshold for future applications like extensions or settlement.
For Employers Sponsoring Skilled Workers
Employers must adapt to the new salary threshold, which could impact their ability to recruit skilled workers from abroad.
Businesses may need to reassess their hiring strategies and budgets, especially in sectors where the new threshold exceeds the average pay for skilled roles.
The transition to the new salary level could potentially lead to an increase in applications before April 2024 as employers and applicants seek to take advantage of the current lower threshold before the rules change.
For Family Visa Applicants
The phased increase in the income requirement for family visas, starting with a rise to £29,000 in spring 2024, will impact British citizens or settled residents who wish to bring family members to the UK.
This change may particularly affect groups with typically lower earnings, such as younger people and those living outside London and potentially limiting family reunification options.
For the Broader Labour Market
These changes could influence the labour market by potentially reducing the number of middle-skilled workers, like butchers or chefs, where pay tends to be below the new threshold.
The phased approach to increasing the family visa salary threshold is intended to mitigate immediate impacts but still represents a significant future hurdle for many families.
These salary threshold changes reflect the UK government’s efforts to balance immigration control with the needs of the labour market and societal considerations. Employers and potential visa applicants must stay informed and plan accordingly to navigate these changes effectively.
What is the broader impact of these salary threshold increases?
The salary threshold increases for UK visas will have broader socio-economic implications, affecting different sectors and demographics within the UK.
Impact on the Labour Market
The increase in salary thresholds may lead to a reduction in the number of middle-skilled workers immigrating to the UK. Sectors like hospitality and retail, often reliant on such workers, might face recruitment challenges.
For higher-skilled sectors, the changes could attract more highly-paid professionals, aligning with the government’s goal of a high-skill economy. However, this could also lead to skill gaps in certain sectors.
Impact on the Healthcare and Education Sectors
The exemption of health and care workers, as well as teachers, from the salary increase is crucial. It acknowledges the essential nature of these professions and the ongoing demand for these roles in the UK.
This exemption could help mitigate staffing shortages in these critical public sectors.
Economic Perspectives
The salary threshold increase could potentially lead to a higher average wage among immigrants. However, it might also restrict the flow of certain skilled workers to the UK, affecting sectors that traditionally rely on immigrant labour.
The phased approach to the family visa salary threshold could give families and employers time to adjust, but it still represents a significant future challenge.
Expert Immigration Lawyers in London
The UK government’s proposed changes to the salary thresholds for Skilled Worker and Family visas, set to take effect in April 2024, represent a significant shift in the UK’s immigration policy. If you wish to benefit from the reduced salary thresholds, it is advisable to apply before the rules change and you may no longer meet the threshold.
Our expert immigration lawyers are dedicated to guiding you through these changes. We offer expert advice and tailored solutions to meet your specific immigration needs, ensuring a smooth and successful visa application process.
If you have any questions or need assistance with your UK visa application or immigration strategy, please don’t hesitate to contact us. We are here to help you navigate these changes and achieve your immigration goals.
