The Impact of UK Skilled Worker Visa Changes (July 2025): A Guide for UK Employers

The UK has implemented one of the most significant overhauls of its immigration system in recent history. The impact of UK Skilled Worker Visa changes, which took effect in July 2025, is far-reaching and will fundamentally reshape how UK employers hire international talent.

From increased salary and skill thresholds to a narrower list of eligible occupations, these reforms require immediate attention from business owners, senior leadership, and HR teams across London, Manchester, and Birmingham.

This guide, brought to you by Conroy Baker Ltd., outlines the key changes and provides a strategic roadmap to help your business navigate this new landscape.

The new regulations, effective July 22, 2025, are designed to reduce net migration and focus on attracting higher-skilled talent. Understanding these changes is critical for both current sponsors and businesses considering international recruitment.

Previously, the minimum skill level for a sponsored role was RQF Level 3 (equivalent to A-levels). The new rules raise this to RQF Level 6 (degree-level) for all new applications. This is a major shift, as it effectively removes approximately 180 occupations from the eligible list.

• Impact: A significant number of mid-skilled roles – from administrative positions to certain technical and managerial roles – are no longer eligible for sponsorship. This requires employers to re-evaluate their recruitment strategies.

The general salary threshold for a Skilled Worker Visa has increased from £38,700 to £41,700. This increase applies to all new applications made with a Certificate of Sponsorship (CoS) issued on or after July 22, 2025.

• Impact: Businesses must now budget for higher salaries for new hires and ensure they meet the new “going rate” for their specific occupation, if it is higher than the general threshold.

The existing Shortage Occupation List (SOL) has been replaced by an interim Temporary Shortage List (TSL). This list is time-limited (until the end of 2026) and comes with significant restrictions.

• Impact: While some occupations below RQF Level 6 may still be sponsored on a temporary basis, these workers cannot bring their dependants to the UK, making the roles less attractive to international candidates.

One of the most impactful changes is the closure of the UK Skilled Worker route to new overseas care and senior care workers.

• Impact: The care sector, which has relied heavily on international recruitment, now faces a significant challenge in filling critical roles. Existing visa holders are generally protected under transitional arrangements, but new overseas recruitment is no longer an option.

Given these changes, a reactive approach is no longer enough. Your business must act now to mitigate the impact of UK Skilled Worker Visa changes on your workforce.

1. Conduct a Workforce Audit: Review your current and planned roles. Do they meet the new RQF Level 6 skill and £41,700 salary thresholds? Identify roles that are no longer eligible for sponsorship and explore alternative recruitment channels.
2. Re-evaluate Salary & Budget: Ensure your financial planning accounts for the higher salary thresholds. This is not just for new hires but also for existing sponsored workers visa extensions.
3. Review Transitional Arrangements: Understand which of your current sponsored employees are protected by the transitional arrangements. While their current roles may not be at RQF Level 6, they can be extended under specific conditions.
4. Strengthen Your Sponsor Licence Compliance: With stricter rules and higher thresholds, the Home Office is likely to increase its compliance scrutiny. Ensure your HR systems and record-keeping are impeccable to avoid penalties. Our team of UK Immigration & Business Lawyers can provide a comprehensive compliance audit.

The impact of UK Skilled Worker Visa changes is a reality that businesses must confront head-on. These reforms represent a strategic shift by the government, placing a greater emphasis on domestic recruitment and higher-skilled immigration. While the new rules present challenges, they also offer an opportunity for proactive businesses to strengthen their compliance and talent strategies.

Navigating this new landscape without expert guidance can be risky. The team at Conroy Baker Ltd. has extensive experience helping businesses in London, Manchester, and Birmingham adapt to evolving immigration rules, ensuring their ability to attract and retain the talent they need to thrive.