On 12 May 2025, Prime Minister Keir Starmer revealed the government’s immigration white paper. This document, titled “Restoring Control over the Immigration System,” outlines proposals to reduce the UK’s reliance on overseas workers and address long-standing skill gaps.
HR professionals and employers must become familiar with these plans, as, should they be implemented, they would mark a significant shift in the acquisition, development, and retention of talent. Read on as we examine the key changes employers should be aware of, including the stricter Skilled Worker visa requirements. We discuss how these developments could affect employment and steps employers can take to best prepare.
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Key Employment Reforms Under the Immigration White Paper
The immigration white paper establishes several reforms to shift the UK’s employment focus from foreign recruitment to domestic skills investment. While international talent would still be welcomed into the UK, the routes would become more difficult. For employers, such changes would represent new compliance and talent sustainability challenges that must be adhered to.
Stricter Skilled Worker Visa Criteria
For starters, the Skilled Worker visa route would require a degree-level qualification, reversing the 2020 policy that allowed some workers to qualify with just A-levels. Applicants would also need a B2 proficiency in English, or “upper-intermediate,” rather than the current B1.
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While highly skilled overseas professionals would still have access to work in the UK, lower-skilled workers would likely be affected. This could significantly impact sectors historically dependent on international labour, such as care and hospitality. Going forward, these sectors will be required to submit domestic workforce strategies, setting out how they plan to develop local talent and reduce reliance on immigration over time.
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Closure of the Social Care Visa Route
Individuals looking to enter the UK via a social care visa would no longer be permitted. However, those who currently hold this visa would only be entitled to apply for an extension or switch visas until 2028. Prime Minister Keir Starmer and his government claim this will help bring investment into domestic care work. Still, concerns have been raised since the sector is already experiencing acute labour shortages.
Higher Costs for Hiring Workers from Abroad
Elsewhere, the immigration white paper proposes a 32% increase in the Immigration Skills Charge (ISC), a tax levied on employers who sponsor migrant workers. This is a significant increase on the current charge, and would mark the first time it has changed since its introduction in 2017. For medium to large employers, the change would increase the upfront payment for the first 12 months by £320 (from £1,000 to £1,320), and by £160 for each additional six-month period thereafter (from £500 to £660).
Further Changes Impacted by the Immigration White Paper
Some final changes the government intends to introduce include a new international student levy and an extended settlement period for migrants. Higher education institutions would face a levy on income generated from international students, while the qualifying period for UK settlement would double from five to ten years. HR professionals in academia would need to assess the financial implications of the former, particularly its impact on international enrolment and staffing, while the latter could increase the cost of hiring workers from overseas, as employers would need to sponsor them for substantially longer.
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Though the precise timelines remain to be confirmed, one thing is clear: employers can expect tougher compliance obligations, tighter sponsorship rules, and growing pressure to develop sustainable domestic talent pipelines.
The Immigration White Paper: What Employers and HR Teams Should Do Now
While uncertainty remains following the release of the immigration white paper, employers and HR teams should take a proactive approach. It’s clear that Prime Minister Keir Starmer and his government intend to refocus recruitment efforts on developing domestic talent. By reviewing current hiring practices and making targeted adjustments, employers can better position themselves to remain compliant and resilient in the face of upcoming changes.
Refocusing on Domestic Talent
For instance, with migrant labour facing tighter restrictions and rising costs under the Skilled Worker visa route, employers should re-evaluate their approach to hiring workers. Long-term workforce planning will be essential to anticipate and address potential labour gaps. Sectors most affected should consider developing contingency strategies focused on domestic recruitment. This might include partnering with local education providers, investing in apprenticeship programmes, or enhancing internal career progression pathways.
Developing and Retaining the Existing Workforce
Additionally, with new barriers to international recruitment on the horizon, greater emphasis must be placed on the existing workforce. Employers will need to strengthen internal development programmes to maximise productivity, while also prioritising employee well-being to maintain morale and reduce attrition.
Reviewing training budgets, leadership pathways, and promotion processes will be essential to ensure talent can progress from within. Equally, embedding inclusive practices that support underrepresented groups will help widen the domestic talent pool. Failure to invest in these areas could deepen existing labour shortages, particularly in already stretched sectors like social care, where burnout and turnover risks are already high.
Strengthening Sponsorship and Compliance Systems
Finally, since the immigration white paper underscores an intention to tighten sponsorship and immigration enforcement, HR departments must ensure their processes are watertight. Employers should review right-to-work checks, visa tracking systems, and the management of sponsorship documentation to mitigate the risk of non-compliance. They should also consider engaging immigration law specialists to conduct audits and advise on evolving legal requirements.
While each organisation’s response will vary, taking proactive steps will help ensure compliance with future reforms and enhance overall resilience. By investing early in domestic talent strategies, strengthening internal systems, and staying ahead of immigration compliance, employers can better prepare for the shifting landscape of recruitment and workforce planning in the UK.
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