UK Immigration White Paper: a balanced view on the proposed policy changes and system reform

The Government’s Immigration White Paper: “Restoring Control over the immigration System”, which was published yesterday (12 May 2025), and the Prime Minister’s preceding announcement, caused a considerable stir and generated extensive debate over the future of immigration, leaving many migrants, employers and educational establishments concerned.

Notably, much of the reaction and commentary has focused on the more controversial proposals contained in the paper. While concern around this is understandable, it is important not to overlook some of the welcome aspects of the White Paper, including the Government’s stated commitment to evidence-based policymaking, which aligns the immigration system with the UK’s economic, industrial and workforce strategy. If implemented properly, these could, for example, give rise to the expansion of certain economic contribution-based immigration categories.

In this article, we explore the proposed policy changes and consider the likely restrictions and opportunities which may arise as a result of these changes, and the likely impact on migrants and industries across the UK economy. Of course, much will depend on the manner in which the practical implementation of the stated policy changes will be made.

What does the White Paper mean in practical terms at this stage?

The White Paper is a statement of the Government’s intention in relation to its immigration policy, parts of which are due to be put to consultation later this year, prior to implementation. Therefore, at this stage, the details relating to many of the proposed changes – and the nuances of any such changes – are still being fleshed out and remain unclear. In other words, while the White Paper sets out a direction of travel, the manner in which it will be implemented, and the extent and impact of the changes in practical terms, are yet to be determined.

It is also currently unclear whether the proposed changes, when in force, will apply to new entrants only or whether the application will be retrospective and include those already on track for settlement. It also remains to be seen whether any transitional arrangements will be put in place.

In the weeks that follow, and as further detail emerge, we will be publishing a series of articles considering the potential impact of the proposed policy changes on different immigration categories and sectors of economy.

Proposed policy changes: overview

Settlement

One of the most controversial elements of the White Paper relates to the qualifying period for settlement increasing from five years to 10 years.

Under the current system, most migrants, although by no means all, are able to apply for permanent residence after residing in the UK for five years and provided they meet other qualifying criteria. The Government now proposes to increase this period to 10 years. This is a significant change. However, it is important to note that many could be excluded from this change and will remain subject to a five-year qualifying period and in some cases less. For example:

• Dependants of British citizens will remain subject to a five-year period.
• A number of immigration categories which provide an expedited path to settlement, in some cases as early as three years. This includes the Global Talent visa route, which is aimed at exceptionally talented individuals recognised as leaders in their respective fields. While details are not set out in the White Paper, we understand that these expedited paths to settlement will be maintained under any new points-based approach.
• The changes do not appear to impact people applying for Settled Status under the European Settlement Scheme after five years of residence in the UK. There is no indication that the Government wishes to revisit the Withdrawal Agreement in this regard.
• It is possible that even those caught under the new 10-year rule will have the opportunity to reduce the newly proposed 10-year qualifying period to settlement based on their contributions to the UK economy and society. Although it is yet to be determined how such contributions will be assessed, the White Paper indicates that there will be a “points-based approach” to early settlement applications.

Therefore, while this proposed policy change is likely to have a considerable impact on many individuals and employers, it is fair to say that a cohort of migrants will continue to qualify for settlement after five years’ residence in the UK, if not before. It will be important for those potentially impacted by the change to consider their strategy and what steps can be taken to reduce the qualifying period once more information reading the practical implementation is available.

Employment categories

Key policy changes relating to work categories include:

• Raising the Skilled Worker visa threshold to from A-levels (RQF 3) to graduate level (RQF 6) – with salary thresholds set to reflect the higher skill level. 
• Establishing a new Temporary Shortage List to allow workers who do not meet the graduate level requirement (RQF 6) access to the Skilled Worker category. This will be for specific roles and for a set period of time.
• An increase in the Immigration Skills Charge for the first time since its introduction in 2017, by 32% in line with inflation.
• Increased English language requirements for Skilled Workers and other workers where a language requirement already applies from B1 to B2 of the Common European Framework.

Plainly, these changes will impact many employers and require timely adjustment to mitigate the impact of these changes. We encourage employers to consider the proposed changes and review their recruitment strategies in the run up to these changes coming into force and once more information is available regarding the practical implementation of these changes.

It might be helpful for employers to know that, while some of the proposed changes will not be unfamiliar, other changes will be subject to exceptions, and that, with careful planning, steps can be taken to mitigate the impact of some of the far-reaching changes. For example, the rise in workers’ skills threshold effectively reverse changes introduced by Boris Johnson’s government in 2020, which expanded the list of occupations eligible for sponsorship to mid-skilled roles. Importantly, as many employers will recall, the old system required the role in question to be at degree level; it did not require the migrant to hold a degree, provided they had the necessary skills and experience to effectively carry out the role. While details of the proposed changes have not yet been announced, it is possible that migrants will still not require a degree to qualify as a Skilled Workers. Additionally, existing workers in eligible roles below degree level should be able to continue to extend their visas in this category and change employers.

Finally, the new Temporary Shortage List will continue to allow employers to recruit overseas workers to categories of jobs below degree level in certain circumstances, depending on need. Although this will be subject to limits on the amount of time workers in these categories will be able to spend in the UK and will not allow such workers to qualify for settlement or bring dependant family to the UK.

Expansion and overview of the highly skilled categories: Global Talent, Innovator Founder, High Potential Individual and UK Expansion Worker

One of the most positive aspects of the White Paper is the Government’s intention and stated dedication to increasing the number of migrants coming to the UK in the very highly skilled and talents routes. This includes encouraging entrepreneurship and making the UK more appealing to migrants and businesses looking to invest in the UK.

Therefore, while immigration opportunities will undoubtedly reduce on the lower end of the skills level, migrants with a high level of skill in their chosen field may have more opportunities as a result of the proposed changes.

The Government proposes to expand the Global Talent route (a route which allows settlement in the UK after three years in some cases) and UK Expansion Worker category, review the Innovator Founder category and explore a targeted and capped expansion of the High Potential Individual (HPI) route, looking to double the number of qualifying institutions.

Educational institutions, students and graduates

The Government intends to:

• Reduce the period graduates can remain in the UK after their studies from two years to 18 months.
• Raise the minimum pass requirement of each Basic Compliance Assessment (BCA) metric by five percentage points, so that, for example, a sponsor must maintain a course enrolment rate of at least 95% and a course completion rate of 90% to meet the compliance threshold.
• Explore introducing a 6% tax on income from international student income, to be "reinvested into the higher education and skills system".

We will be publishing a detailed article this week on the above changes to student routes.

While the proposed changes are of concern to many in the education sector, it is worth noting that many practitioners feared that the Graduate Visa would be scrapped altogether and that international students would have to pay increased tuition fees. Therefore, the reduction of the Graduate visa by six months, coupled with the potential expansion of the High Potential Individual category and the potential 6% tax on universities income from international students (rather than the student paying more directly) can be seen as less controversial than feared. 

Other changes

Additional proposed changes, which we will expand on in future briefings in the coming weeks, include:

• Increasing existing English language requirements for settlement across most immigration routes from B1 to B2.
• Requiring an English language requirement for all adult dependants of workers and students, at level to align to spousal and partner routes, and working towards increasing this requirement over time.
• Closing social care visas to new applications from abroad. For a transition period until 2028, the Government will permit visa extensions and in-country switching for those already in the country with working rights, but this will be kept under review.
• Tackling the “over-complex” family and private life immigration arrangements.
• Legislation will be brought forward to make clear it is the Government and Parliament that decide who should have the right to remain in the UK. This will address cases where Article 8 right to family life legal arguments are used.
• Strengthening border security, making it easier to refuse entry at the border and come down harder on people who break the conditions of their leave.
• Using e-Visas to prevent illegal working.

Conclusion

While there has been much understandable concern regarding the White Paper and the likely resulting overhaul to the UK immigration system, it is important to remember that the extent of the changes and impact on individuals and employers will depend on the practical implementation of any such changes. It is also worth bearing exploring the potential opportunities presented by the White Paper for businesses and individuals alike.

While it is not yet clear when the proposed changes will be implemented, or what the practical impact of many of the changes will be, we encourage individuals, employers and educational institutions to consider what steps they can take to secure their position and adjust their strategies in light of the above.

In the meantime, we will continue to publish articles assessing the impact of the proposed changes on different immigration categories.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, May 2025