UK immigration update

Employers and individuals should be thinking about strategic planning around immigration issues now!

We’ve all seen the announcements of sweeping immigration reforms that will reshape how businesses sponsor workers and how individuals qualify for settlement. These changes reflect a clear policy drive to reduce net migration while tightening compliance obligations for employers. Here, we look at some upcoming changes and provide some tips on how you can forward plan.

The Immigration Skills Charge (ISC) increase

Effective from 16 December 2025, medium and large sponsors ISC has risen from £1,000 to £1,320 per sponsored worker per year. Small and charitable sponsors have an increase from £364 to £480.

English language level increase for work visas

The required level of English for work visas is set to increase from B1, equivalent to a GCSE or National 5, to B2, equivalent to an A Level or Higher exam. This will apply to new applications from 8 January 2026. Applicants who submit their visa applications after 8 January 2026 will need to meet the higher threshold. Those who entered the UK under the B1 requirement will not need to take a new test when extending their visa.

Fund for adult social care employers in Scotland

The Scottish Government has launched a £500,000 fund to help adult social care workers who lost sponsored employment due to recent UK immigration policy changes. Requests for an application for funding must be emailed to before the closing date of 31 December 2025.

With the closure of the social care visa route and an 88% drop in health and care worker visas, the fund aims to:

• Remove barriers to employment for displaced international care workers.
• Support employers in retaining skilled staff.
• Protect care capacity and maintain high-quality services.

Scottish social care employers can apply for funding to employ up to 3 displaced international adult social care workers. Employers must meet the criteria below.

• Hold a current sponsor licence to hire migrant workers on the health and care visa.
• Have an existing, legitimate vacancy that they have not been able to fill.
• Be registered with the Care Inspectorate.

Further details can be found here: Adult Social Care Displaced Worker Scheme.

Settlement reform

The qualifying period for most applicants will double from 5 to 10 years, with settlement now tied to contribution, income, tax history, and community participation. High earners could qualify in as little as 3 years, while others may wait significantly longer. There is no date set for implementation. The official consultation is open until 12 February 2026, meaning no new rules will begin before spring/summer 2026. If introduced via a Statement of Changes in early April 2026, the Earned Settlement rules could take effect by late April 2026.

You can participate in the consultation here: Earned settlement.

Change in Graduate visa length

The Graduate visa duration will be reduced to from 2 years down to 18 months. This will take effect from 1 January 2027. Employers who recruit graduates up to two years in advance may already have issued offers for graduate programmes starting in 2027.

Recommendations 

• Employers must budget for higher sponsorship costs and prepare for stricter compliance checks.
• Employers with plans to recruit talent from overseas should make candidates aware of the upcoming change in English language requirement.
• The settlement reforms may create a more complex landscape, rewarding contribution but raising questions of fairness and accessibility. Strategic workforce planning and clear communication with employees is vital.
• Review graduate offers – careful assessment and planning are required to ensure that those on graduate visas will be able to complete any period of training.
• For businesses, proactive compliance and transparent guidance will be essential!
• Individuals planning long-term settlement should reassess timelines and financial thresholds.

Without doubt, the immigration system in the UK is becoming ever more complex to navigate! Understanding the evolving rules is critical to making informed decisions. If you need assistance, get in touch at cbo@bto.co.uk / 0141 225 5280.