Right to Work scheme changes 2025: what employers need to know

Increasing sponsorship costs

Sponsoring a Skilled Worker already costs employers up to £1,400 per employee, with total fees exceeding £10,000 if dependants are included. Further increases are likely, creating financial pressure for SMEs and lower-wage sectors.

Higher skills thresholds

The minimum qualification requirement would rise from A-level to degree level, removing around 180 eligible occupations from the Skilled Worker list. Practical, experience-based roles are likely to be disproportionately affected.

Stricter English language requirements

The Government proposes raising English language standards for sponsored workers. Employers may need to support existing international employees to meet the new level.

A longer route to settlement

The settlement (Indefinite Leave to Remain) period may increase from five years to ten, requiring more visa renewals and compliance checks, impacting long-term workforce planning.

Replacement of the Immigration Salary List

The current list will be replaced, and employers will need to demonstrate active domestic recruitment before hiring internationally – although how this evidence will be assessed remains unclear.

Sharp rise in minimum salary thresholds

The minimum salary for Skilled Worker visas is set to rise from £26,200 to £38,700, creating a major challenge for care, logistics, retail, hospitality and other sectors where wages sit close to National Minimum Wage levels.

Increased compliance and enforcement

More frequent Home Office audits, stricter documentation checks and greater penalties for unintentional administrative failings are expected.

How these changes impact employers

The combined effect of the immigration reforms and the potential RTW extension is significant:

Reduced access to global talent

• Higher salary thresholds and degree-level requirements will shrink the eligible overseas talent pool and raise recruitment costs.

Increased administrative burden

• Employers may need new onboarding processes, audit trails, contractor policies and digital systems.

More compliance risk

• Penalties for illegal working may apply not only to employees but also to contractors, freelancers and self-employed workers engaged indirectly.

Workforce and resource pressures

• Lower-wage sectors may struggle to recruit, while international staff may experience uncertainty around settlement and visa renewals.

Diversity and inclusion impacts

• A reduced pipeline of international talent may affect workforce diversity and organisational EDI ambitions.

What employers should do now

Although these changes are still proposals, early preparation is essential. Employers should:

Audit the workforce

• Identify all employees, contractors and agency workers with visa requirements or RTW documentation.

Strengthen onboarding and compliance systems

• Introduce digital RTW tracking, renewal alerts and consistent recording practices for both employees and contractors.

Budget for increased costs

• Plan for higher sponsorship fees, rising salary thresholds and additional resource costs linked to compliance.

Upskill and develop domestic talent

• Invest in internal development programmes to reduce reliance on sponsored workers.

Review contractor agreements

• Ensure contracts clearly outline responsibility for RTW checks and specify documentation requirements.

Support existing sponsored staff

• Provide communication, reassurance and English language support where needed.

Build stronger domestic recruitment strategies

• Engage local training providers, colleges and job centres to widen the talent pipeline.