The Reality Check Employers Have Been Dreading
The UK government just dropped a bombshell on the immigration system, and if you are an employer who relies on overseas talent, you need to pay attention. Starting 22 July 2025, the rules are changing dramatically – and not in ways that make hiring easier.
Statement of changes to the Immigration Rules: HC 997, 1 July 2025 – GOV.UK
These are not minor tweaks. We’re talking about a complete restructuring of how skilled workers can come to the UK, documented in the government’s HC 997 statement HC 997 Immigration Rules Changes and its accompanying memorandum. The message is clear: the UK wants fewer overseas workers, and those who do come need to be highly skilled and well-paid.
The Graduate Degree Requirement
Here is the big one: if you want to sponsor someone for a Skilled Worker visa, they will need a role that requires a bachelor’s degree or equivalent. The earlier system allowed A-level equivalent positions (RQF Level 3), but that’s history. Now it is graduate level (RQF Level 6) or nothing.
This single change wipes out around 180 occupations from eligibility. Think about the implications – many roles that businesses have traditionally filled with overseas workers simply will not qualify anymore. The government has thrown in some lifelines with the Temporary Shortage List and Immigration Salary List, but these come with their own restrictions.
Money Talks: Higher Salary Thresholds
The salary requirements are jumping too. The general minimum is rising from £38,700 to £41,700 – a substantial increase that will price out many potential candidates and force employers to dig deeper into their budgets.
PhD holders are not exempt either. Their minimum salary requirement climbs from £34,830 to £37,500. Even new entrants and STEM PhD holders face higher thresholds. The only group catching a break is health and care visa holders on national pay scales, who stay at £25,000.
These are not just numbers on a page. They are real costs for businesses and real barriers for skilled workers who might have previously qualified.
The End of Overseas Care Worker Recruitment
The most drastic change affects the care sector. From 22 July onwards, you can forget about recruiting care workers and senior care workers from overseas. The only exception? Workers already in the UK for at least three months before getting their sponsorship certificate – and even that lifeline expires in July 2028.
This change will hit the care sector hard, given the sector’s ongoing staffing challenges and historical reliance on overseas workers. The government’s betting that domestic recruitment can fill the gap, but anyone working in care knows how challenging that market already is.
Side Jobs Get Complicated
The rules around supplementary employment are tightening too. Skilled Worker visa holders used to have more flexibility with more jobs, but now those secondary roles must also meet the RQF Level 6 standard or be on the Immigration Salary List.
If you are currently employing skilled workers who take on additional roles, you will need to review these arrangements. The transitional protections are temporary, and the government has made it clear this is subject to future review.
The New Shortage Lists
The government is replacing the old Immigration Shortage List with a Temporary Shortage List (TSL). While this keeps some lower-skilled roles eligible for sponsorship, it comes with catches: no salary discounts and restrictions on bringing dependents.
The TSL includes some trades like plumbers and builders that were previously excluded but removes others like bricklayers and roofers. It is a mixed bag that reflects the government’s attempt to be selective about which skills shortages it is willing to address through immigration.
What This Means for Your Business
If you are an employer, now is the time for a reality check. Look at your current workforce and identify which roles will not qualify under the new rules. Consider whether you can upskill existing employees or restructure roles to meet the higher skill requirements.
Source: Statement of changes to the Immigration Rules: HC 997, 1 July 2025 – GOV.UK
You will also need to budget for the increased salary thresholds. These aren’t optional—they’re hard requirements that will affect your ability to compete for overseas talent.
For businesses in the care sector, the changes are particularly stark. You have until July 2028 to find domestic solutions for care worker recruitment, assuming you can access the limited transitional provisions.
The Bigger Picture
These changes did not happen in a vacuum. They are part of a broader political strategy to reduce net migration numbers and shift the UK’s immigration system toward higher-skilled, higher-paid workers. Whether this achieves the government’s goals remains to be seen, but the immediate impact on employers is clear.
The government has provided detailed transitional arrangements for current workers and pending applications, but these are temporary measures. The new reality is that overseas recruitment will be more expensive, more restrictive, and focused on genuinely high-skilled roles.
Simon Duff – Director Leap29 shares his perspective on the Immigration Overhaul.
“These changes to the UK immigration system add further complexity for employers. While the changes come from a good place in terms of protecting job opportunities for those already working in the UK, employers are still finding skills difficult to hire and many do not have a thorough understanding of the immigration frameworks and its continuous development. For businesses with a significant population of workers on visas, a thorough review and audit of their workforce, as well as future planning, is required.”
How Leap29 Can Help You Stay Ahead
With the UK immigration system shifting toward stricter rules, higher salary thresholds, and tighter job eligibility, businesses need more than just awareness—they need a strategy. That is where Leap29 comes in. As a trusted UK Employer of Record (EOR), Leap29 helps companies hire overseas talent compliantly without the need to set up a UK legal entity.
