What do we know about changes to Skilled Worker visas in April 2024?

Last week, the Migration Advisory Committee (MAC) released its report, Rapid review of the Immigration Salary List, which gives more clarity around the likely changes to the Skilled Worker route from 4 April 2024 and provided a number of recommendations regarding the Immigration Salary List (ISL) covered in our briefing.

Pending final confirmation in the statement of changes, it is apparent from the MAC report that changes to the Skilled Worker route are far reaching including for those who will be extending or seeking to settle in the UK on or after 4 April 2024.

We have set out a summary of changes to the Skilled Worker route (please note, these do not apply to the Health & Care worker visa – separate rules will apply to this route) flagged in the MAC report although it should be noted that we do not have the final Statement of Changes from the Home Office that is due to be released on 14 March 2024.

For those making their first Skilled Worker visa application on or after 4 April 2024:

• Increase to the minimum salary threshold from £26,200 to £38,700 for newly sponsored Skilled Workers;
• Increase to the minimum salary threshold for new entrants and roles on the new ISL from £20,960 to £30,960;
• Increase to the “Going Rate” thresholds, in many cases by over £10,000 for newly sponsored Skilled Workers (see examples below);
• Renumbering of the SOC codes – moving from SOC 2010 to SOC 2020, which will result in different SOC numbering, some SOC codes being split out and some combination of SOC Codes;
• Replacing the Shortage Occupation List with the ISL with the majority of roles recommended to be removed (the MAC has recommended only 21 job codes be included on the ISL) and no 20% discount to the “Going Rate” for roles on the ISL;
• Renaming the reference to the minimum “Going Rate” to Occupation Specific Thresholds.

Current sponsored employees and those who make their Skilled Worker visa applications before 4 April 2024:

• There will be transitional arrangements in place for those sponsored under the Skilled Worker route prior to 4 April 2024, however there is still an proposed increase to the General Salary Threshold at the 25th percentile (which we understand is likely to be £29,000 at 4 April 2024);
• Importantly, it appears that despite these transitional arrangements in place for those currently on Skilled Worker visas, there will be an increase to “Going Rates” (the new Occupation Specific Thresholds) which will apply on any subsequent extension/change of employment/settlement application. The rates must meet the 25th percentile of the latest Annual Survey of Hours and Earnings (ASHE). Therefore, individuals may still need to be paid in excess of the £29,000 minimum salary threshold depending on their SOC Code.

What this could look like in practice is set out below for two SOC Codes as an example:

Current SOC Code	New SOC Code	General Threshold for those newly sponsored from 4 April 2024 (discounted rate for New Entrants)	Current “Going Rate” for SOC Code	New Occupation Specific Threshold for those newly sponsored from 4 April 2024 (50th percentile)	New Occupation Specific Threshold for Leave to remain (including those extending from 4 April 2024) (25th percentile)
2135 IT business analysts, architects and system designers	2133	£38,700 (£30,960)	£30,080	£51,698	£39,328
3545 Sales accounts and business development managers	3556	£38,700 (£30,960)	£35,100	£52,495	£39,093

 

As a result of these envisaged changes sponsors may wish to undertake a review of their Skilled Worker population to establish whether:

• there are commonly used SOC Codes that will be affected;
• there are prospective employees holding offers who may be impacted;
• current employees on Student or Graduate visas will be able to switch from 4 April 2024 and once they can no longer benefit from the new entrant rate;
• current employees on Skilled Worker visas will be able to extend and settle under the new rules – particularly looking at the increase in the “going rates” to the new 25th percentile;
• any prospective or current employees should urgently extend their visa before 4 April 2024 or whether there are any alternative routes available to them;
• support will be offered to those impacted.