UK Government Makes Immigration Rule Changes

Some of the changes are wide ranging and will have a large impact on how you check an employee’s right to work in the UK. In this article, we detail the main areas of change that the Government has made and give you some steps to follow to help you stay on the right side of the law.

Immigration Rules Changes – What is Changing?

• Right to Work Checks will be required to be expanded to any individual who works for the company, not just employees.
• Increases to the Immigration Skills Charge (+32%)
• Tightening of the Worker Skills List and minimum salaries that need to be paid for skilled workers
• Earned Settlement Scheme proposed to guide when an individual has earned the right to remain in the UK
• More powers for HMRC to check compliance with a £60,000 fine per incident.

Right to Work Checks

We have been urging all employers to ensure they are carrying out Right to Work Checks for all employees for many years.

However, the new rules under the Act now require completion of Right to Work Checks for anyone working for the Company or Organisation. This includes contractors, agency workers and Gig Economy workers.

Actions you should take:

• Make sure you check at least one Government-issued document (passport, Birth Certificate, visa, etc.) with a photo ID, plus proof of address (Utility or Council Tax bill).
• When you check the documents, ensure you have the originals and that the check is in person (not online or over the phone).
• Once the check has been completed, copy the documents, sign and date them. File them for future reference.
• If one or both of the documents expires at any time and the individuals may have a limit on their right to work in the UK (e.g., a work visa), make sure you complete a new Right to Work Check.
• Revisit all files for right-to-work checks as a matter of urgency to ensure that you have the necessary evidence on file for existing workers.

This is a very important part of employing workers legally and should not be overlooked or short-cut under any circumstances. Failure to complete these checks diligently may be extremely costly, not to mention the damage to the organisation’s reputation.

Changes to Sponsored Employer Charges

Every time you employ an individual as a sponsored Skilled Worker, the company must pay an annual fee called the Immigration Skills Charge (ISC).

This annual fee is now increasing as follows:

There are some exemptions regarding the roles on the Skilled Worker list, but the above charges will apply in most cases.

Changes to Skilled Worker Eligibility & Minimum Salaries

The Government have now also tightened up on who can be considered to be a Skilled Worker in the UK as follows:

• Skilled Worker List for RFQ level 5 or less drastically reduced. (circa -150 roles)
• New Skilled Workers must be qualified to RFQ Level 6 or higher (equivalent to a Bachelor’s degree) to be eligible for the scheme.
• Sponsors may employ overseas individuals on lesser roles (RFQ 3 – 5) if the role is listed on the Temporary Shortage List or the Immigration Salary List.
• Minimum salary limit for new starters has now risen to £41,700 from £38,700.
• For those skilled workers who were on a Visa prior to April 2024, the rate has risen from £29,000 to £31,300.

These changes are complex, and the above information provides only an overview of the changes made since July 2025.

If you are looking to become a Sponsored Employer, we advise you to contact a specialist advisor who can go through the details with you.

Earned Settlement Scheme – Consultation

Under the current scheme, an individual would normally have the right to remain after a certain period of time served (5 years standard or 10 years’ long residence) in the UK.

The Government are now consulting on introducing a new structure comprising a standard 10-year baseline, with additional criteria for good behaviour, integration and economic contributions.

The criteria below outline the Government’s thinking on how the 10-year baseline would be affected based on the following attributes:

The areas that remain unchanged are settled status for spouses, Hong Kong nationals, and individuals on Talent Visas.

The Government has confirmed that if the above is brought into law, then these rules would apply retrospectively.

The  Consultation closes on 26^th February 2026, but we would advise employers to start consulting with any employees that may be affected as soon as possible.

HMRC Fines Structure For Non-Compliance

The fine for individual breaches has already been increased to £60,000 per incident.

HMRC are already engaging in contacting individuals who are employed under the Skilled Worker and Sponsor Scheme.

Any organisation currently engaging employees under this scheme is advised to check their paperwork and ensure the job role they are doing corresponds with the Certificate of Sponsorship registered with the Government.

Summary of Actions To Take

1. Check all Right to Work processes and ensure they align with the new, expanded rules.

2. If you are a Skilled Worker Sponsor, ensure you understand the impact of the increase in Skilled Worker fees and salary thresholds.

3. Check all current sponsored workers to ensure that their job roles align with the certificate of Sponsorship. If they do not, then you may need to review whether thy can legally remain as a Skilled Worker.

Always Seek Professional Advice

This area of employment law has changed beyond recognition in the last 5 – 10 years and looks set to keep tightening until the Government has immigration and illegal working under control.

The above measures are all designed to reduce immigration.

This is a complex area of law, and whilst HR Smart cannot advise our clients directly, we do have partners we can refer them to for specialist advice.

Please email Jon at jon@hrsmartuk.com or call 01903 754107 if you think you need any specialist advice on this subject.