The UK elections have wrapped up, and Keir Starmer has taken the reins from Rishi Sunak as the new Prime Minister. His first speech as PM was a no-nonsense assessment of the British economy, which he described as “in a bad state.” He pledged that his government would make the tough decisions needed to turn things around.
Immigration policies may tighten
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One of the significant changes on the horizon could be the tightening of immigration policies, with increased border checks and higher eligibility requirements for foreigners wishing to move to the UK. Immigration was a key issue during the 2024 general election, with both major parties promising to cut net migration levels.
Changes implemented
The Skilled Worker visa, the largest work migration route in the UK, has already seen changes. Since April, the minimum salary threshold has risen to £38,700 or the going rate for the role, whichever is higher. Additionally, social care workers can no longer bring dependents on their visas. The list of jobs eligible for sponsorship with a reduced salary requirement has been shortened, and the minimum income to sponsor a spouse or partner visa increased from £18,600 to £29,000.
Labour Party’s stance on legal immigration
Sir Keir Starmer announced on June 2 a plan to reduce net migration by training more UK workers and improving working conditions. He promised laws to prevent employers from relying on overseas skilled workers by default. The Labour Party has “no plans” to change the ban on health and care workers bringing their families to the UK, and their manifesto vows to “reduce net migration” without setting a specific target.
Where do migrants come from?
In 2023, of the 1,218,000 migrants arriving in the UK, 10% (126,000) were EU nationals, similar to 2022’s total of 116,000. Approximately 85% (1,031,000) came from outside the EU, with the top five non-EU nationalities being:
Indian: 250,000
Nigerian: 141,000
Chinese: 90,000
Pakistani: 83,000
Zimbabwean: 36,000
Student migration
International students and their families have significantly contributed to the rise in net migration since 2019. After graduation, international students can stay and work in the UK for two years, or three if they are PhD graduates, by switching to a Graduate Visa. However, in January 2024, most students, apart from those in postgraduate research courses, were banned from bringing family members to the UK. Labour plans to retain this ban.
Impact on immigration
The UK faces significant unemployment, a key factor in the Conservatives’ electoral loss. The Labour government prioritises job creation and preservation for local citizens. “Except for the healthcare sector and some trades, stringent skilled immigration policies will likely continue,” says Ajay Sharma, founder of Abhinav Immigration Service. He adds, “The UK’s strict immigration policies are driven by the need to protect local jobs and attract foreign direct investment amidst economic challenges from Brexit and the Russia-Ukraine war.”
How will Indians be affected?
Changes in immigration policy could significantly impact Indian nationals, who form a large proportion of non-EU workers in the UK. Stricter controls might limit opportunities for Indians to move to the UK for work. However, it is important to recognise the gap in the domestic workforce. Vandana Mahajan, Founder and Director of Futures Abroad explains, “It will take time to train local workers to fill positions currently held by migrants.”
Balancing economic needs
Mahajan believes Labour’s win might lead to more balanced and flexible immigration policies. Labour may bolster the Migration Advisory Committee (MAC) and retain the Graduate visa route. They might also introduce stricter measures against employers who misuse the immigration system.
Options for Indians
Mahajan lists several visa options available for Indians:
Skilled worker visa: For Indians with job offers in sectors facing skill shortages.
Global Talent Visa: For individuals recognised as leaders or potential leaders in academia, research, arts, and digital technology.
Graduate Route: Indian students completing degrees in the UK can stay for two years (three for PhD graduates) to find work.
Intra-Company Transfer Visa: For employees of multinational companies transferring to the UK branch.
Aritra Ghosal, Founder and Director of OneStep Global, offers a nuanced view of the immigration changes. “The UK still offers top-tier education, research opportunities, and post-study work options,” says Ghosal.
He emphasises that these policies are designed to ensure that immigration positively impacts the UK economy. However, it’s important to consider the broader implications. Ghosal explains, “International students bring in significant revenue through tuition fees, which help expand course offerings and compensate for domestic student and research funding shortfalls.”
Furthermore, international students provide a short-term labour supply for UK businesses. Ghosal notes, “It is crucial for the government to maintain a balanced approach that supports both economic growth and the needs of the educational sector.”
Balancing jobs and immigration: Steps the UK government can take
To address the job and price hike crisis while allowing immigrants, the UK government can:
Introduce targeted visa programmes: Focus on sectors with skill shortages by offering specialised visas for professionals in those areas.
Streamline visa processes: Simplify the application process for skilled workers to ensure that the best talent can be quickly and efficiently integrated into the workforce.
Economic impact assessments: Regularly assess the economic impact of immigration policies to ensure they are meeting the country’s needs without unduly restricting valuable contributions from immigrants.
Enhance integration programmes: Support integration initiatives to help immigrants settle and contribute positively to their communities, reducing public concerns about immigration.
