Immigration Alert

Navigating Recent Changes in the UK Work Visa Regulations and Sponsor License Renewals
A. Background:

The United Kingdom government is set to roll out substantial revisions to its work visa regulations starting from April 2024, aimed at addressing workforce requirements across multiple sectors.

B. Change/Development:

1. Work Visa Regulations Update:

  • Increased Minimum Salary for Skilled Worker Option: The minimum salary under the Skilled Worker Option is set to increase significantly, rising to GBP 38,700 from GBP 26,200, marking a substantial increase of 47.7%.

  • Exemption and Restrictions for Health and Social Care Visa Workers: Health and Social Care Visa workers retain an exemption from the minimum salary increase. However, they will no longer have the option to bring dependents to the UK. This change might prompt certain applicants to explore other destinations permitting dependent visas.

  • Removal of Discount for Occupations on Shortage Occupation List (SOL): Employers can no longer avail of a 20% discount on the minimum salary level for occupations listed in the Shortage Occupation List. Companies hiring for roles on the SOL will face increased costs as they are now obligated to pay the full minimum salary.

  • Increased Financial Requirement for Family Applications: The UK nationals sponsoring foreign national dependents must now earn a minimum of GBP 38,700 annually, up from GBP 18,600, marking an over 100% increase. This heightened financial threshold may significantly reduce the number of eligible individuals capable of sponsoring family members to join them in the UK.

2. Changes in UK Sponsor License Renewals:

The UK sponsor licence, which is a prerequisite for employers to employ someone from outside the UK, is required to be renewed every four years. Effective 6 April 2024, the UK Home Office will discontinue the requirement for sponsors to renew their licenses.
Sponsors with licenses expiring before 6 April 2024 are advised to adhere to the existing renewal process to maintain the license. All existing sponsor licenses expiring on or after 6 April 2024 will receive an automatic extension of ten years. This streamlined approach eliminates the need for renewal applications and associated fees, providing considerable relief to businesses and organisations sponsoring skilled workers, students, and individuals for various purposes from outside the UK.

C. BDO in India Comments / Conclusion:

The upcoming changes in the UK work visa regulations and sponsor license renewals will have varying impacts on employers.
Sectors relying on lower salary thresholds and those hiring from the health and social care sectors may face operational adjustments. Employers must proactively assess the impact on their workforce strategies.

The decision to automate sponsor license extensions is a positive step, offering relief to businesses sponsoring skilled workers from abroad.

While navigating these changes, vigilance in monitoring policy developments and ensuring compliance remains paramount.

BDO in India will continue to monitor these changes and provide clients with the necessary guidance to navigate them effectively.