The UK government has announced key dates for changes regarding civil penalties for illegal working, the increase to minimum salary requirements, and sponsor licence renewals.
INCREASE TO THE IMMIGRATION HEALTH SURCHARGE
As discussed in our previous LawFlash, effective 6 February 2024, the main rate for the immigration health surcharge increased from £624 per year to £1,035 per year. The discounted rate for students and applicants under 18 increased from £470 per year to £776 per year.
SKILLED WORKER – MINIMUM INCOME REQUIREMENT
From 4 April 2024, the general salary threshold for new applicants under the Skilled Worker route will increase from £26,200 to £38,700 per year.
The planned salary threshold increase should not affect those already in the Skilled Worker route when they change sponsor, extend their visas, or settle. However, their minimum salary is expected to increase in line with the minimum salary requirement as set out in the relevant standard occupation code (as is the current standard practice).
The going rates for specific occupation codes will be increased. There will be exemptions for some applicants, such as Health and Care visa applicants.
SKILLED WORKER SHORTAGE OCCUPATION LIST CHANGES
As detailed in our previous LawFlash, it has been announced that from 14 March 2024, the Shortage Occupation List will be replaced with a new Immigration Salary List. The new Immigration Salary List will remove the 20% going rate discount to the minimum salary for shortage occupation roles and is expected to provide a more limited list of roles that are subject to a going rate reduction.
The UK government has not confirmed if the current new entrant threshold will continue to apply.
SPONSOR LICENCE RENEWAL CHANGES
The requirement to renew a sponsor licence will be removed. If a sponsor licence is due to expire on or after this date, it will no longer need to be renewed. The Home Office has already extended eligible licence expiry dates by 10 years, and this can now be viewed on the Sponsor Management System. If a sponsor licence expires before 6 April 2024, it will need to be renewed in the usual way.
INCREASE TO CIVIL PENALTIES FOR ILLEGAL WORKING
As announced last summer, employer fines for illegal working are increasing from £15,000 to £45,000 for a first breach in instances where an employee is found to be working without a valid visa or working in breach of their visa conditions. For subsequent breaches, the fine triples from £20,000 to £60,000 per employee. The increased fines will only apply to breaches occurring on or after 13 February 2024.
FAMILY VISA – MINIMUM INCOME REQUIREMENT
From 11 April 2024, the minimum income requirement for partners applying under the family route will be increased from £18,600 to £29,000 per year. The threshold will be increased incrementally so that it will eventually align with the general salary threshold for Skilled Worker applications of £38,700 by early 2025.
LOOKING AHEAD
Employers should consider the impact that these immigration changes will have on long-term recruitment plans. Employers may wish to accelerate hiring practices for roles that will not meet the salary thresholds in April 2024, and submit applications prior to these changes becoming applicable. They may also wish to consider applying for the maximum duration of sponsorship to avoid any additional challenges at the extension stages. Employers should note that Skilled Worker and Global Business Mobility visas can be submitted up to three months prior to an individual’s proposed start date.
Sponsor licence renewal processes previously provided a reminder to employers to ensure that licence details are up to date and that appropriate right to work processes are in place. Employers may use this change as an opportunity to set additional internal processes to ensure continuous compliance in the event of a Home Office compliance visit. Employers should be aware that compliance visits can take place at any time, whether on notice or unannounced.
