How will the 2025 Immigration White Paper impact the Hospitality sector?

Many of the proposed changes are likely to have a significant impact on the hospitality sector and its ability to recruit overseas workers. An increase to the skills threshold, increased costs and tougher English language requirements are all likely to reduce the possibility of sponsorship in this sector. Below, we have set out the key changes to be aware of.

The skills level for Skilled Workers will revert to RQF level 6 (the equivalent to a UK Bachelor’s degree) and salary thresholds are set to rise again. The government estimate that this will reduce the number of eligible occupations by approximately 180, which is likely to impact on hospitality roles.

Skilled worker visas will still be approved at RQF levels 3 to 5, but only where the occupation is listed on a new Temporary Shortage List. The new list will be time limited and will focus on occupations where there have been long-term shortages and where employers can demonstrate a commitment to recruiting from the UK workforce. Employers will be incentivised to train local hires before being able to recruit overseas.

The Immigration Skills Charge is set to increase by 32%, in line with inflation.

Since 2017, the Skills Charge has been set at £364 per year for a small or charitable sponsor and £1,000 per year for a medium or large sponsor. This fee is payable by the sponsor at the time the Certificate of Sponsorship is assigned and is payable for each year of sponsorship. An increase to the yearly fee will therefore be an increase to the already high fees payable to sponsor a worker in the UK.

In an effort to improve integration and community cohesion, the English language requirements for Skilled Workers will increase from B1 to B2 in accordance with the Common European Framework for Reference for Languages (CEFR). This creates a higher language threshold for any potential hospitality applicant.

Up until now, family members of Skilled Workers (dependants) have not been subject to the English language requirement. The White Paper confirms that all adult family members will need to pass an English language test at CEFR level A1 to gain entry to the UK and will be required to take tests at a higher level when extending and applying for settlement in the UK.

Skilled Workers and their family members will now be expected to have lived continuously and lawfully in the UK for 10 years before being eligible to apply for Indefinite Leave to Remain (also referred to as settlement).

This is double the current requirement of 5 years and increases the financial burden on sponsors and workers, who are required to pay significant fees for each year of sponsorship. The White Paper states that individuals will be able to “earn” the right to apply for ILR at an earlier stage based on “contributions to the UK economy and society”. How these contributions will be measured is to be debated and it is yet to be seen whether those in the hospitality sector will benefit.

Our Immigration team specialises in all aspects of UK immigration law and are on hand to help you to navigate these changes. It is not yet clear as to how quickly the above changes will be implemented, however our team will continue to summarise and publish the changes as they are released.

In addition to the changes outlined above, the White Paper is heavily focused on compliance and stronger measures in respect of illegal working, removals from the UK and failures to pay tax. It is therefore more important than ever to ensure full compliance with Sponsor duties, including record keeping, reporting any changes to the Home Office and ensuring right to work checks are being carried out in line with current guidance. We can advise on all aspect of Sponsor compliance and arrange training or a mock audit in preparation for a Home Office compliance visit”.