How UK tech firms can reduce risk amid reforms to immigration

How UK tech firms can reduce risk amid reforms to immigration

The IT sector relies on immigration and global mobility to address skills shortages, drive innovation, and support business growth. Global mobility has facilitated leadership development and knowledge transfer, helping companies meet evolving business needs. Recent changes to UK immigration policy threaten to disrupt this flow of talent.

The Immigration Quarterly Statistics highlight this impact. In the year ending March 2024, 67,703 Skilled Worker visas were granted, but the number issued to IT professionals fell by 25% compared to the previous year. By June 2025, 10,231 such visas had been issued —a decline of around 23% year-on-year. Employers are increasingly asking why this is happening and what can be done.

The Skilled Worker route has undergone significant changes in the past 18 months. In April 2024, the minimum salary increased from £26,200 to £38,700, and “going rates” for specific occupations were revised to median salaries rather than the 25th percentile. On 22 July 2025, thresholds rose again to £41,700, and only jobs at degree level (RQF Level 6) or above generally qualify. Calculating the correct salary, especially for those switching from Student or Graduate Visas, has become far more complex.

High sponsorship costs and increased government compliance further discourage employers. Some employers have advised that, because of last years’ higher minimum salary required under the Skilled Worker visa, the cost of transitioning student or graduate visa holders to Skilled Worker status could increase by at least 50%.  An assessment of tech startup workers indicated that 37% would not meet those new salary requirements.

Meanwhile, other countries are actively attracting IT talent. The EU Blue Card allows highly skilled non-EU workers to live and settle in member states. Germany issued 78% of the 89,000 Blue Cards in 2023 and set their 2025 IT salary threshold at €43,760. Canada prioritizes tech and AI skills, while Singapore offers competitive visas targeting similar global talent. Spain issued 28,000 Digital Nomad Visas in 2024, requiring a minimum monthly income of €2,700 and remote employment, with Cyprus providing both this, multiple other visa options and potential income tax incentives for tech workers.

Tips for UK employers

Despite tighter migration policies, there are ways for UK employers to help those seeking new or renewed sponsorship. Clear communication with existing and prospective employees is essential to prevent misinformation. HR teams should provide timely, accurate updates on immigration changes, countering hostile, or misleading media coverage. Recruiters must carefully consider future sponsorship possibilities, likely to be limited to degree-level roles, with calculation of the precise salary thresholds before making offers being critical. Alternative immigration routes, including the Youth Mobility Scheme and Global Talent programme, can also support international recruitment.

 Finally, employers unable to recruit due to these changes should make the impact clear to industry representatives and government bodies. Highlighting the effects of higher salary thresholds and stricter skill requirements can influence Government policy, particularly when combined with public awareness.

The 2024–2025 changes tighten access to sponsorship. Adapting to these changes may determine whether the UK remains a competitive destination for global IT talent.

 Simon Kenny is Immigration and Global Mobility Partner at Spencer West LLP


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