UK: Major change in immigration policy

UK Prime Minister Keir Starmer plans stricter immigration rules, limiting settlement and low-skilled visas, especially in social care, aiming to boost UK hiring but risking economic slowdown.

The key points: Prime Minister Keir Starmer has announced plans to tighten UK immigration rules. Migrants will need to spend ten years in the country before being eligible to settle, unless they can show a significant contribution to the economy and society. The ability of employers to hire low-skilled workers from overseas will be severely restricted, with the social care sector particularly affected as its visa route is set to be abolished. Starmer claims these changes will end the previous “open borders” approach and focus on training and hiring UK workers.

Why this matters: The move signals a significant shift in UK immigration policy that could reshape the labour market. While intended to address public concerns and boost domestic employment, there are warnings that it could exacerbate labour shortages, especially in sectors like social care, and potentially slow economic growth due to an ageing population and declining birthrate.

What might happen next: Debate will intensify between those who see the policy as necessary control and those who argue it risks harming the economy. Employers, especially in sectors reliant on overseas workers, are likely to lobby for exceptions or adjustments. There may also be legal and political challenges as the government works to implement these changes.

ADDITIONAL INFORMATION:

See this report from Lewis Silkin LLP on what the changes proposed by government are likely to mean for businesses and what steps you should take now.  

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