UK Immigration White Paper 2025: How it Affects Businesses, Charities and Universities
The UK government published its highly anticipated Immigration White Paper, titled “Restoring Control over the Immigration System,” in May 2025. The 82-page document outlined reforms aimed at reducing net migration, tightening visa eligibility, and reshaping the UK’s approach to immigration.
For more information about the new government immigration white paper and how the incoming rule changes affect you, call our team at +1 844 290 6312 or message us online.
Immigration White Paper 2025 - What is it?
The Immigration White Paper is a UK government issued document outlining key immigration reform in 2025 and beyond. It outlines their position on key immigration issues, such as reducing net migration and reliance on overseas workers. The document rolls out proposals and timelines for new immigration laws affecting skilled foreign workers, students and healthcare workers, as well as British organisations.
The changes could impact workforce planning, recruitment strategies, and international collaboration for businesses, charities, and universities that heavily rely on global talent and mobility. This article delves into the key proposals in the White Paper and examines how they may affect the UK’s private, public, and non-profit sectors.
Overview of Changes Affecting British Organisations
- Skills Charge uplift: The Immigration Skills Charge is set to increase by 32%, adding approximately £1,000 annually to the cost of sponsoring each overseas worker.
- Public licence ratings: To transform immigration compliance, UK Visas and Immigration (UKVI) will publicly release sponsor licence ratings online.
- Skill Level Increase: Sponsoring skilled workers and healthcare workers will require a minimum qualification band of RQF 6 (equivalent of a bachelor degree). This is currently a mix of level 3-5.
- Domestic‑training duty: Larger employers will be required to demonstrate yearly expenditures on the professional development of their UK-resident staff. This proof of investment will be a prerequisite before these businesses can sponsor workers from overseas.
- Higher salary floor: Based on recommendations from the Migration Advisory Committee (MAC), the minimum salary threshold for the Skilled Worker route, currently £38,700, will likely increase to complement the revised skills threshold.
Sector‑Specific Impact
- Universities: Stricter Basic Compliance Assessments (BCA), potential caps on student dependents, and a proposed international student tuition levy may impact recruitment and revenue planning.
- Charities & NGOs: While volunteer routes will remain accessible, project-worker roles must now meet the RQF level 6 skill threshold. These organisations must also document volunteer expenses for UKVI audits.
- SMEs & Scale-ups: The Innovator Founder, High Potential Individual, and Global Talent visa routes will remain available; however, businesses must prepare for increasing salary thresholds for skilled worker appointments, as well as employing higher skilled workers, and increased record-keeping.
New Financial Obligations
Immigration Skills Charge
The Immigration Skills Charge (ISC) is set for a 32% increase. Small or charitable sponsors currently pay £364 per year, while medium or large sponsors pay £1,000 annually per sponsored worker.
Post-increase, small/charitable sponsors will pay £480 for the initial 12 months and £240 for each subsequent 6-month period. Medium/large sponsors will face costs of £1,320 for the first year and £660 for each additional six months, substantially raising the expense of international recruitment.
Visa Fees and Salary Thresholds
Visa application fees for the Skilled Worker visa route will likely be revised in 2026 to align with the new, higher skills threshold. The Migration Advisory Committee (MAC) will review the new salary requirements, including potential exemptions or reduced thresholds, to ensure that wage levels accurately reflect fair market rates across sectors.
Additionally, the Immigration Salary List (ISL), introduced in 2024 to replace the Shortage Occupation List (SOL) and which offered discounted salaries for shortage occupations, will be abolished for a new Temporary Shortage List.
Proposed International Student Levy
The UK government is considering introducing a levy of up to 2% on universities’ tuition income from overseas students. This proposed International Student Levy aims to generate funds that would be reinvested into the UK’s broader higher education and skills system. This potential new cost could impact university finances and their future strategies for international student recruitment and fee structures.
Civil Penalties for Illegal Working
Fines for employers facilitating illegal working will rise substantially, to £60,000 per breach. This hike in civil penalties underscores the government’s commitment to enforcement against illegal employment practices. The aim is to protect legitimate businesses and ensure that British citizens and those with the right to work in the UK can access employment opportunities.
Timeline of Regulatory Milestones
| Date | Obligation |
| 12 May 2025 | White Paper released – consultation closes 7 Jul 2025 |
| The social care route closes. Visa extensions and in-country switching are permitted for a transition period until 2018 | |
| Domestic training plan duty starts. | |
| Sponsor licence grades become public | |
| Autumn 2025 | Budget on international student levy to be set before parliament |
| Early 2026 (target January) | RQF 6 skill rule enforced for skilled workers, with salary thresholds increasing to match. |
| 6 April 2026 | 10‑year and 6-year fast-track ILR rule changes and B2 English requirement for settlement become effective |
| 2027 | First Workforce Strategy audit and contribution‑points framework goes live |
Sponsor Licence: Public Rating & Penalties
Sponsor licence ratings, such as A-rating, B-rating, or suspended status, will now be publicly available on the GOV.UK website. This will make compliance a visible reputational factor, potentially influencing public perception and client confidence in sponsoring businesses and institutions.
Sponsors receiving a B-rating will be required to fund and implement an Action Plan and provide quarterly progress reports to improve their compliance. Sponsors failing two audits will face a 12-month ban on issuing new Certificates of Sponsorship.
Student sponsors will be subject to a Basic Compliance Assessment (BCA) with three key metrics to monitor sponsor compliance. To maintain their licence, academic institutions must record:
- A visa refusal rate under 10%,
- A course enrolment rate of at least 90%
- A course completion rate of at least 85%
Student sponsors failing any of the BCA metrics risk having their sponsorship licence revoked and being removed from the Register of Student Sponsors for up to two years.
We can help you navigate the new changes to the UK immigration system and ensure your organisation remains compliant. Contact us for assistance.
Domestic Training Plan Duty
A new domestic training plan is being introduced as part of the UK Government’s renewed emphasis on labour market reform and to ensure no sector depends solely on immigration to solve skill shortages.
Employers must now prioritise domestic hiring and internal training schemes and actively invest in upskilling the UK workforce in alignment with industry needs. They will only be able to employ overseas workers with a qualification above RQF 6.
They must submit an annual report detailing their expenditure on apprenticeships, accredited training courses, and mentoring initiatives for UK-resident staff. Failure to submit this annual report may result in penalties, including a downgrade of the employer’s sponsor licence or the imposition of a fine.
English‑Language & Settlement Rules – Employer View
Employees seeking Indefinite Leave to Remain (ILR) after April 6, 2026, must demonstrate English language proficiency at level B2. The government’s rationale is that effective communication is fundamental for individuals to participate in civic life and build meaningful social connections.
Employers should consider offering or sponsoring relevant language courses for affected staff. Expenditure on English language tuition for employees may contribute towards fulfilling the requirements of the new domestic skills training duty.
In addition, organisations should maintain records of employees’ English language test certificates. Failure to provide this evidence during audits may lead to sponsor licence action by the authorities.
Immediate Compliance Checklist
To stay compliant with the reforms, sponsors should take the following steps:
- Assess RQF Level: Immediately review all currently sponsored roles and map them against the new RQF level 6 threshold to ascertain their continued eligibility under the 2026 regulations.
- Initiate Domestic Training Plan: Begin drafting your first annual domestic training plan, outlining planned expenditure and initiatives for upskilling UK-resident staff. Allocate a dedicated budget for these activities.
- Update Right-to-Work Guidance for Language Criteria: Update your right-to-work check guidance to include awareness of the B2 English language requirement for ILR post-April 2026. Train HR teams on acceptable evidence and meticulous record-keeping.
- Audit Internal Compliance: Schedule an internal mock audit to identify potential compliance gaps before your next official UKVI inspection.
How Total Law Can Help
Our immigration experts at Total Law offer comprehensive support to ensure your organisation remains compliant with the new immigration rules, such as those outlined in the 2025 White Paper.
Our services are tailored to address the specific challenges businesses, charities, and universities face. We provide end-to-end sponsor-licence lifecycle management, assisting with initial applications, conducting thorough audits to identify potential vulnerabilities, managing timely renewals, and providing corrective action plans to address compliance issues.
Our team offers bulk visa drafting and fast-track filing services for organisations requiring efficient visa processing. We also provide relocation and compliance advisory services designed explicitly for advisory boards, executives, researchers, and project teams that need to relocate to the UK.
To learn more about our corporate immigration services, contact us at +44 (0) 333 305 9375 or complete our online form, and we will contact you.
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