Thursday, May 2, 2024

Foreign labour’s no longer a cheap option for UK businesses after enactment of new laws

UK businesses are now required to pay overseas workers coming to the UK on a Skilled Worker visa significantly more, as the government clamps down on cut-price foreign labour and continues to deliver on its commitment to drive down net migration.

Part of a package of measures announced by the Home Secretary in December, which will mean 300,000 people who arrived in the UK last year would now not be able to, the general salary threshold for those arriving in the UK on a Skilled Worker visa has now increased by 48%, from £26,200 to £38,700.

It’s said that this increase will help ensure the UK’s immigration system focuses on recruiting high-skilled workers, helping to grow the UK economy while bringing overall numbers down.

A new immigration salary list  has been created, following advice from the expert and independent Migration Advisory Committee. Roles on the list will be included only where they are skilled and in shortage, and if it is sensible to include them considering the efforts being made by sectors to invest in the resident workforce.

Inclusion on the list must not serve to reduce pay and undermine the recruitment of British workers. Employers are encouraged to invest in training, upskilling, and hiring domestic workers first.

It comes as the government takes decisive action to support British people into work, in one of the biggest employment interventions in a generation, through its £2.5 billion Back to Work plan. This will help break down barriers to work for over a million people who are long term unemployed, long term sick, or disabled.

Home Secretary James Cleverly said: “It’s time to turn off the taps and end the flow of cheap workers from abroad. Mass migration is unsustainable and it’s simply not fair. It undercuts the wages of hard-working people who are just trying to make ends meet.

“We are refocusing our immigration system to prioritise the brightest and best who have the skills our economy needs, while reducing overall numbers.

“I promised the British people an immigration system that serves their interests, and to bring numbers down – these tough measures deliver on that commitment. Employers must also play their part and put British workers first.”

Work and Pensions Secretary Mel Stride said: “For too long we have relied on labour from abroad when there is great talent right here in the UK.

“I’m determined to give jobseekers the support they need to get on and get ahead through our £2.5 billion Back to Work Plan, while our network of Jobcentres are providing apprenticeships, bootcamps, and skills programmes to help even more people into work.”

The changes coming into force today coupled with my next generation of welfare reforms will unlock the huge potential of the great British workforce.

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