Changes to Immigration and Earning Thresholds in 2024: What SMEs Need to Know
Posted on 18th January 2024 at 07:22
The Government has suggested tougher measures to cut migration that will come into place in Spring 2024 (subject to Parliamentary approval). The proposed changes carry profound implications for employers dealing with challenging-to-fill positions across various industries.
The most notable alteration is the spike in the salary threshold for Skilled Workers, soaring from £26,200 to £38,700 – nearly a 50% increase.
To navigate the new landscape, the Migration Advisory Committee (MAC) will compile a list (ISDL), replacing the Shortage Occupation List (SOL), outlining occupations exempt from the heightened salary threshold.
While health and care workers remain unaffected by the salary adjustments, dependants of care workers must now meet £38,700 income requirements. In response to concerns, the Government published additional information on reforms. Notably, the minimum income requirement for dependants will initially rise to £29,000, with a staged implementation matching the £38,700 threshold. Existing skilled workers will not be subject to the new salary threshold when changing employment, extending visas, or settling permanently in the UK.
Impact on specific roles:
Despite no salary threshold changes for care workers, limitations on dependants may dissuade overseas care workers.
Higher-skilled roles, such as programmers and software developers, may be affected, with a quarter currently earning below the new salary threshold.
The hospitality sector, comprising the three lowest-paying occupations, may struggle to fill 120,000 vacancies if these roles aren't added to the ISDL.
Employer considerations:
Employers must be alert to these impending changes, The ISDL, crucial to exemptions, will be closely scrutinised, impacting workforce planning.
Strategic workforce planning, data collection on resourcing efforts, and organisational data analysis can assist employers in mitigating challenges, particularly in sectors like social care.
In light of these changes, employers are encouraged to invest in resident capability, both in people and technology.
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