In more detail

The government's white paper, Restoring control over the immigration system, sets out the government's plans to create what it intends to be an immigration system in which growth is promoted, controlled and managed. The main changes that are relevant to employers are set out below, although many of the changes would require parliamentary approval and may be significantly amended before they become law.

1. Reduction in range of role that qualify for a Skilled Worker visa: Currently a job rated at or above RQF level three of the UK's Regulated Qualifications Framework (RQF), could be eligible for sponsorship under the Skilled Worker category. This level will be raised to RQF level six, unless the Migration Advisory Committee (which advises the Government) recommends an exemption. Level three is equivalent to an A-level or an advanced diploma whereas RQF level six is at graduate level. Level six was the pre Brexit level for Skilled Worker roles, so this marks a reversal of the last Government's relaxation of the rules in order to mitigate the expected post-Brexit loss of a pool of workers from the EEA.
2. Stricter English language requirements: Skilled Workers already need to obtain English certification at level B1 under the Common European Framework for Reference for Languages (CEFR). Those workers must now demonstrate the higher B2 (Independent User) level. Furthermore, for the first time all adult dependants of Skilled Workers must demonstrate level A1 (Basic User). This could therefore cause delays or even cancellation of assignments for the future transfer of some employees with partners who can't meet this requirement - meaning the best candidate might not be appointed in some cases.
3. Increase in the qualifying period for Indefinite Leave to Remain (ILR): A new "earned settlement" system is being proposed to increase the time to obtain ILR (otherwise known as permanent residence or settlement) from five to ten years, but with the potential to obtain an earlier earned qualification. No details have been released on this yet, but it's anticipated these will be announced later in the year followed by a consultation period prior to implementation. It hasn't been confirmed whether this will affect those already in the UK on a path to settlement, although it has been widely reported that the Home Secretary does want these proposals to apply to migrants who are already in the UK (although this would be a departure from the usual position of not applying such changes retrospectively). This change will not however affect those with post-Brexit Pre Settled Status under the EU Settlement Scheme or those with visas as spouses/partners of British and Settled people.
4. Easier access for Global Talent and High Potential visas: In contrast to the other measures aimed at reducing migration numbers, the Government wants to promote and see and an increase in the relatively small number of applicants under the Global Talent category for leaders or potential leader in academia, research, arts and culture and digital technology and the High Potential route for graduates of a select top overseas universities. It also wants to see faster processing times and more places for research interns & those working in Artificial Intelligence. It plans to make it simpler and easier to use the Global Talent category and to double the number of qualifying institutions under the High Potential route.
5. Further increase in UKVI fees: The Immigration Health Surcharge (currently payable on application at GBP 1035.00 per year of visa requested) is to be increased by 32 percent. This is the latest in a series of fee increases in recent years. The Government takes the view that those who benefit from the system should contribute to its cost, but this change together with the changes to the ILR rules will make it increasingly expensive for employers to hire overseas workers both in terms of the immediate fees increases and because employers will need to extend their sponsored employees visas for a longer period before they qualify for ILR.
6. Labour Market Evidence (LME) Group to be established: The LME Group will compile and share evidence about the state of the workforce, training levels and participation by the domestic labour market. It will focus on sectors / occupations which are central to industrial strategy and which have high levels of reliance on migration for their workforce. It will make recommendations about sectors or occupations where workforce strategies are needed, or where the labour market is currently failing. This could lead to certain sectors being required to develop a working strategy with which employers will need to comply.
7. Abolition of Immigration Salary List: Currently sponsors can pay lower wages for certain roles appearing on this list also known as the "shortage occupation list". This will be abolished and replaced by a Temporary Shortage List. The Temporary Shortage List will comprise occupations below graduate level that can qualify under the Skilled Worker route on a time limited and restricted basis. Jobs on the Temporary Shortage List will include a restriction on bringing dependants. The Temporary Shortage List will contain occupations that the Migration Advisory Committee considers to be in shortage or which are crucial to the delivery of the UK's wider Industrial Strategy.
8. Reduction in Graduate visa length: This category was introduced with the expectation that most Graduate visa holders would go into graduate level jobs (at RQF six and above), but a Government survey showed that only thirty percent of Graduate visa holders were employed in professional occupations (at RQF six and above). The reduction from two years to eighteen months is therefore intended to increase the proportion going into graduate roles.
9. Reforms to British Citizenship rules: Citizenship eligibility will be changed to align to proposed earned settlement reforms. There will therefore be an increase in the qualifying period, but allowing those who have made a greater contributions to qualify sooner. There will also be reforms to the Life in the UK test.

Implementation Timeline

The proposals set out in the White Paper have created a lot of uncertainty, both for employers and for their sponsored employees and other visa holders currently residing in the UK. There isn't much detail in the White Paper on when the new rules will be implemented, but some of the changes such as those to the Skilled Worker route could be implemented more quickly without new primary legislation i.e., possibly in just a few weeks as the White Paper refers to some "immediate changes to immigration rules". However, the more significant changes such as those to the ILR and Citizenship rules will be subject to consultation and the full parliamentary process before becoming law, so it's unlikely the final agreed version of those reforms will be implemented until some time next year further extending the period of uncertainty.

Further details regarding these changes can be obtained by reaching out to your usual contact in our Global Immigration & Mobility team.