1. Introduction

On 1st July 2025, the UK issued a Statement of Changes to the Immigration Rules (HC 997). These changes take effect fully from 22nd July 2025, with some already in force. This aims to restrict lower-skilled migration, raise salary thresholds, and align the Skilled Worker route with strategic economic goals.

This blog breaks down the changes and analyses their deeper commercial and legal significance.

2. Changes in immigration rules

Change	Previous Rule (Before July 1, 2025)	New Rule (Effective from 22 July 2025 unless stated otherwise)	Impact of the Change
Skilled Worker Eligibility Threshold Raised to RQF Level 6	RQF Level 3 and above jobs were eligible. This included roles such as care workers, senior care workers, chefs, butchers, teaching assistants, etc.	Only jobs at RQF Level 6 (bachelor’s degree level) or above will now qualify. Over 100 roles at Level 3-5 removed from eligibility list.	This is a major strategic shift toward a “high-skill, high-wage economy”. The UK has eliminated the eligibility of lower-skilled or diploma-level jobs under the Skilled Worker route. This directly impacts industries that depended on skilled manual labour, such as social care, hospitality, logistics, and support services.
Salary Threshold Increase for skilled workers Visa sponsorships	The general threshold for sponsorship under option A was £38,700 per annum	Minimum salary is now £41700 annually, with some exceptions (e.g., PhD-qualified individuals, education/health roles).	This change narrows the access for foreign workers by raising the bar significantly. Employers must now offer higher salaries, creating challenges especially for SMEs and sectors like care or food services. The shift intends to reduce dependency on cheap labour and encourage businesses to invest in domestic workforce.
Temporary Shortage Occupation List (TSOL) Introduced	Previously, shortage occupation roles were listed under a single Shortage Occupation List (SOL), which allowed lower salary thresholds and included dependants.	A Temporary SOL will now apply to a few selected roles (e.g., care workers, bricklayers, roofers), but under strict caps and time limits. Importantly, dependants are not allowed.	This is a tactical compromise to plug urgent labour gaps without encouraging long-term migration. It allows temporary access to some low-skilled workers while removing incentives like dependent visas. The route is scheduled to close in 2026, indicating its short-term nature.
Overseas Care Worker Visa Route Closed	Care workers and senior care workers could enter the UK through the Skilled Worker route with relatively low salary requirements (around £20,960/year) and bring dependants.	New overseas applicants are no longer eligible to apply. Only in-country switching (e.g., students or other visa categories already in the UK) is allowed until 2028.	This abrupt closure is a major blow to the social care sector, which relied heavily on international recruits. The government cited abuse of the route and dependency creation as reasons, but critics argue this leaves an already stretched care system more vulnerable.
Afghan ARAP and ACRS Schemes Closed to New Applicants	The Afghan Relocations and Assistance Policy (ARAP) and Afghan Citizens Resettlement Scheme (ACRS) allowed eligible Afghans and their families to apply for resettlement in the UK.	These schemes are now closed to principal applicants. Only dependent family members of already relocated individuals can apply. Effective from 01 July 2025.	This move reduces the UK’s capacity to accept vulnerable Afghans—particularly interpreters, aid workers, and at-risk individuals who supported UK missions. It has been criticised for violating humanitarian expectations and potentially breaching international obligations.

3. Impact on UK’s job market

The immigration reforms mentioned above are expected to bring significant shifts within the UK’s job market, particularly in how talent is sourced and deployed. Previously, the availability of migrant workers—especially in lower-skilled and support roles—helped maintain a flexible and cost-effective labour pool across sectors such as health care, hospitality, logistics, and food services.

However, with the strict eligibility to RQF Level 6 and the closure of lower-wage entry routes, the domestic job market now faces a double bind: increased demand for local workers in traditionally migrant-dependent sectors, coupled with a shrinking pool of affordable labour. Employers may respond by scaling back recruitment, slowing expansion plans, or investing in automation to reduce reliance on human capital.

Furthermore, for international students, the narrowing of job pathways—particularly those that previously allowed entry-level or transitional roles post-study—could affect settlement prospects and overall return on investment for UK education. Whereas earlier international graduates could enter the job market through support or shortage roles and gradually transition to skilled work. The current framework demands immediate alignment with high-skill, high-salary roles. This transition may benefit students in STEM, law, finance, and healthcare, but create challenges for those pursuing careers in fields with less immediate alignment to RQF Level 6 occupations.

In essence, the UK job market is becoming more exclusive, favouring strategically aligned talent over general workforce contributors, thereby redefining the value proposition for global talent and prospective students alike.

4. Lawsplained

The following table simplifies the applicability of the rules regarding Skilled Worker Visa:

Circumstances	Rule Applied
1. CoS issued before July 22 AND visa application submitted before July 22	Old rules apply
2. CoS issued before July 22 BUT visa application submitted on or after July 22	New rules apply
3. CoS issued after July 22	New rules apply

This essentially means if someone has their Certificate of Sponsorship, but they plan to apply for their visa after July 22:

They must meet the new salary thresholds
The employer may need to issue a new CoS if the current one doesn’t align with updated codes or minimum pay

This creates potential for breach of contract claims if not managed carefully. Companies may need to renegotiate employment contracts or issue terminations, risking litigation or settlement costs.

Secondly, dependant exclusion for shortage roles could violate expectations or even discrimination laws if applied inconsistently. Employers must ensure transparent communication and documented reasoning behind hiring decisions.

On the public law side, the closure of Afghan relocation routes without transitional frameworks may attract judicial review, especially if applicants were mid-process. Legally, this invites questions under international refugee law and procedural fairness.

Businesses should closely monitor Home Office updates and prepare to revise compliance systems accordingly. These developments reinforce the need for employers to integrate immigration law due diligence into HR and strategic planning processes.

5. Conclusion

The July 1st UK Immigration Rule changes mark a major shift in labour migration policy. By focusing on high-skilled and high-wage roles, the government seeks to curb net migration—but risks disrupting key sectors and damaging economic flexibility. Hence, businesses must quickly adapt hiring and compliance practices as the long-term impact on; retaining talent, trade, and legal norms unfolds.

References

The Lawsplain

UK Immigration Amendments 2025

1. Introduction

2. Changes in immigration rules

3. Impact on UK’s job market

4. Lawsplained

5. Conclusion

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