The UK is undergoing a major immigration overhaul, with several reforms taking effect from 22 July 2025, and more expected by December 2025. These changes will significantly impact skilled workers, international students, and those on the Post-Study Work (PSW) route.
Transition Period & Key Dates
- 22 July 2025: Most reforms begin, including new salary thresholds and occupation eligibility rules.
- Until end of 2026: Temporary Shortage List (TSL) occupations remain valid but are subject to review.
- December 2025: Additional changes expected, including:
- Increased Immigration Skills Charge
- Stricter English language requirements
- A new family visa framework
Source: GOV.UK – Immigration Reforms
Impact on Skilled Workers & PSW Visa Holders
Skilled Worker Visa Changes
- Skill threshold raised: Only roles at RQF Level 6 (degree level) or higher are eligible.
- Salary threshold increased: From £38,700 to £41,700 for most applicants.
- TSL roles (RQF 3–5) are only eligible if listed, but:
- ❌ No dependants allowed
- ❌ No salary discounts
- ⏳ Valid only until end of 2026
Post-Study Work (PSW) Visa Updates
- Duration reduced: From 2 years to 18 months for all graduates.
- Switching to Skilled Worker visa:
- Must meet new salary and skill thresholds
- Graduates switching before 22 July 2025 may still qualify for lower salary bands
- After July, new thresholds apply, even for UK-educated applicants
What This Means for International Students
- Graduate Route remains valid for September 2025 and January 2026 intakes
- Switching to Skilled Worker visa is possible, but timing is critical
- ILR (Permanent Residency) may shift from 5 to 10 years, with exceptions for high contributors
- Dependants:
- ✅ Allowed for PhD or research-based students
- ❌ Not permitted under most PSW or TSL roles
Updated Salary Thresholds for Skilled Worker Visa Applicants
| Category | Previous Threshold | New Threshold | Notes |
|---|---|---|---|
| General Skilled Worker | £38,700 | £41,700 | Applies to most applicants |
| New Entrants | £30,960 | £33,400 | Must meet 70% of going rate |
| STEM PhD Holders | £34,830 | £37,500 | 90% of going rate applies |
| ISL / Non-STEM PhD | £30,960 | £33,400 | 80% of going rate applies |
| Minimum Hourly Rate | £15.88 | £17.13 | Applies across all categories |
Note: No transition period applies. If your Certificate of Sponsorship (CoS) is dated on or after 22 July 2025, the new salary rules apply immediately.
Source: Statement of Changes HC 997
Changes to Eligible Occupation Codes: High, Medium, and Ineligible Roles
The Skilled Worker visa system now classifies roles into three tiers:
| Classification | RQF Level | Visa Eligibility | Examples |
|---|---|---|---|
| Higher Skilled | RQF Level 6+ | ✅ Eligible | Engineers, IT professionals, doctors |
| Medium Skilled | RQF Level 3–5 | ⚠️ Limited | Only if listed on TSL or ISL |
| Ineligible | RQF Level 3–5 | ❌ Not Eligible | Chefs, dental nurses, teaching assistants |
RQF Level 6 = UK bachelor’s degree equivalent
Worked Example: Chef – Occupation Code 5434
Scenario: A chef was granted a Skilled Worker visa on 15 December 2024 under occupation code 5434.
- ✅ Can extend visa or switch employers under transitional rules
- ✅ Can bring dependants if previously allowed
- ✅ Can apply for ILR after 5 years if continuous lawful residence is maintained and salary threshold (£31,300) is met
- ❌ New applicants cannot be sponsored under this code after 22 July 2025
Economic Impact on UK Businesses
These immigration reforms are designed to reduce net migration and prioritise domestic workforce development. However, they may have significant short-term consequences for UK businesses:
- Labour shortages in hospitality, social care, logistics, and construction due to removal of medium-skilled roles
- Increased costs for sponsorship, salaries, and compliance, especially for SMEs and regional employers
- Reduced flexibility in hiring international graduates and skilled tradespeople
- Pressure to invest in domestic training, apprenticeships, and automation
The Home Office has stated that sectors must develop workforce strategies or risk losing access to the immigration system.
Useful Government Resources
| Topic | Source |
|---|---|
| Statement of Immigration Rule Changes | GOV.UK – HC 997 |
| Immigration White Paper Summary | House of Commons Library |
| Major Immigration Reforms Overview | GOV.UK News |