An IMGW News Report
The UK’s immigration regime is entering a new era. Prime Minister Keir Starmer has unveiled reforms aimed at slashing net migration and realigning the system around high-skilled graduate roles. The pivot rolls back much of the post-Brexit liberalisation that allowed foreign workers to fill vacancies in low-wage sectors such as social care and hospitality.
“sponsoring a skilled worker with a spouse and two children could cost an employer as much as £67,000 over a decade”
The white paper proposes to restrict most work visas to graduate-level positions, with only limited, temporary routes available for lower-skilled jobs in sectors facing acute shortages. Settlement will now require up to 10 years of residence, placing Britain among the most stringent in the OECD.
Visa fees, already among the highest in the world, are rising again. The Migration Advisory Committee estimates that sponsoring a skilled worker with a spouse and two children could cost an employer as much as £67,000 over a decade, factoring in visa charges, health surcharges, and salary thresholds now exceeding £38,000 for most roles.
“international students contributed £42bn to the UK economy in 2021–22”
The government claims the reforms will reduce annual immigration by around 100,000 people. Yet with net migration still above 670,000 in 2024 (down from its 2022 peak of 745,000), the long-term impact remains uncertain. Meanwhile, applications for care worker visas have plummeted since family reunification was barred in early 2024.
The care sector, which recruited over 100,000 foreign staff in 2022 alone, faces a sharp shock. Visa closures, national insurance hikes, and rising minimum wages threaten to squeeze providers already operating on razor-thin margins. “It feels like a deliberate squeeze,” says one care home operator.
Universities, while spared harsh curbs on post-study work, now face tighter scrutiny and a proposed 6% levy on international tuition fees. Given that international students contributed £42bn to the UK economy in 2021–22, the move risks taxing a vital export sector.
Politically, the rhetoric surrounding the reforms – warning of Britain becoming an “island of strangers” – has drawn criticism from within Labour ranks, who fear the party is adopting a watered-down version of Reform UK’s message.
Starmer’s gamble may court swing voters, but it also risks alienating key sectors and adding fresh costs to business.
