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The government announced major changes last week to the immigration system as part of its plan to reduce net migration and encourage more home-grown skills. If you run a business, even if you don’t currently recruit from overseas, it’s worth understanding what’s changing and how it could affect your future hiring plans.

Here are the key points and what they might mean for your business.#

Hiring from overseas will get harder

If your business sponsors skilled workers from outside the UK - or you’ve considered doing so - it’s about to become more difficult and more expensive.

• The definition of a 'skilled worker' is being tightened. Roles will now need to be at graduate level or above to qualify and the minimum salary levels will go up.

• A special list that allowed some roles to be hired at lower salaries is being scrapped.

• From now on, only jobs facing long-term shortages - and where there’s a plan to train UK workers - will be allowed to bring in overseas staff.

In short, unless the role is highly skilled and in short supply, filling it through immigration is likely to become a challenge.

No more social care recruitment from overseas

If you run a care business or provide care services, this one is especially important. The government plans to stop new overseas recruitment for social care roles. Those already here on care visas can stay for now, but no new applications will be allowed. This change will be phased in by 2028, but it’s a clear signal that care businesses need to start planning for UK-based recruitment now.

There may be more pressure to train locally.

The government has said the measures will include new requirements to boost domestic training.

Fewer international graduates staying after their studies?

If you employ graduates, the government is planning to reduce the ability for graduates to remain in the UK after their studies to a period of 18 months. Universities will also face stricter rules for sponsoring students.

This may mean fewer international graduates entering the local job market, something to keep in mind if your business has hired from this group in the past.

Support for high-growth, high-skill businesses

On a more positive note, if your business is in a science, tech, or design-related field, you may benefit from plans to make it easier for top global talent to come to the UK.

What can businesses do now?

Even if your business doesn’t hire from abroad, these changes are part of a wider shift in how recruitment and workforce planning will work in the UK. Here’s what you might consider:

• Think local: Look at how you can train, promote or support current staff before looking externally.

• Review your hiring plans: If you’re growing your team, consider the impact of fewer overseas candidates and a more competitive domestic market.

• Keep an eye on updates: These changes will roll out over the coming months and years, so it’s worth keeping informed.

If you’re not sure how these changes apply to your business or want to discuss your workforce plans, please get in touch. We’re happy to help.

See: https://www.gov.uk/government/news/immigration-white-paper-to-reduce-migration-and-strengthen-border