Scanning the policy horizon under Labour

The Conservative government has departed. Over its tenure, there has been an apparent focus on attracting the ‘brightest and the best’, reducing net migration and tackling illegal migration. Application fees have rocketed. Appeal rights have been reduced. Some routes (such as the Tier 1 categories for investors and entrepreneurs) have come and gone, while others have made a comeback (graduates). Other routes have been refurbished, with some restrictions removed but more subsequently added (skilled worker and global business mobility routes). While elements of the Immigration Rules have been simplified, we have also seen incomprehensible sections added (such as Appendix EU). Immigration lawyers have been working hard to keep up with the ever-changing requirements.

With immigration continuing to be a hot topic in public discourse, all eyes will be on the new government to set out its priorities for immigration. The Labour party has so far been light on the details, but here is what may be on the horizon.

Review of sponsored work routes

Expressed in general terms, the new administration has committed to a ‘fair and properly managed’ points-based immigration system which seeks to reduce net migration levels. Labour has indicated that this may be achieved by reviewing work routes.

Under the Conservatives, minimum salary requirements were increased in April for sponsored work routes. While it remains to be clarified what additional restrictions may be imposed on work routes, we know that the new government wants to incentivise employers to upskill the UK workforce and reduce reliance on overseas nationals to fill skills gaps. This has been achieved under previous administrations through a resident labour market test requirement and, more recently, an immigration skills charge on employers (typically £1,000 per year of sponsorship per worker).

The government has committed to bolstering the Migration Advisory Committee (MAC), an independent public body which provides policy recommendations on migration issues, by facilitating collaboration with skills bodies across the UK, the Industrial Strategy Council and the Department for Work and Pensions. This could result in the MAC providing regular recommendations on areas such as salary thresholds, eligible occupations for sponsorship, and monitoring how to fill skills gaps with minimal overseas reliance.

The government is also planning to introduce workforce and training plans for specific sectors, such as health, social care and construction. Failure to adhere to these plans may restrict organisations’ ability to sponsor overseas workers.

With regard to the MAC, it will be interesting to see whether it will be commissioned to provide recommendations on the efficacy of non-sponsored work routes. The immigration options for entrepreneurs and investors are now limited, which of course affects the UK’s standing as an attractive place for investment and business. The MAC could be tasked with recommending relevant changes to the immigration system which would strengthen the economy.

Monitoring employer compliance

The new administration will also seek to ban employers from being able to hold sponsor licences and thus recruit overseas nationals, where they have breached immigration or employment laws. It seeks to expose employers or recruitment agencies which are ‘abusing’ the immigration system.

On the face of it, there is nothing novel about this stance. Employers can lose their sponsor licence if they do not have the necessary systems in place to monitor, report and keep records for sponsored workers. Licences can also be revoked due to genuineness or salary concerns and evidence of illegal working.

In practical terms, we will likely see more compliance audits for sponsors, and possible tightening of sponsor duties and the consequences of non-compliance. This may result in more sponsor licence applications being refused or licences revoked.

Given that Labour has also made reference to penalties for flouting employment laws, we may also see more focus on right-to-work audits to enforce illegal working penalties. Employers currently face fines of up to £60,000 per illegal worker.

Family policy

The Conservative government recently increased the minimum income requirement for partners (and their children) to join their significant others settled in the UK. The lack of straightforward policy justification for the increased salary threshold raised eyebrows, and the proposal for two further threshold increases has created unease.

While Labour has not specified whether it plans to reverse the changes nor proceed with further increments, it has previously intimated concerns about the financial level set and suggested a review by the MAC would be appropriate. If a review does occur, one would hope that a fair and reasonable approach is taken to how the level is set, with flexibility given to the permitted sources of income so as to minimise the potential for discrimination.

Asylum seekers and small boat crossings

Sir Keir Starmer quickly confirmed that the Rwanda plan (which he described as an expensive ‘gimmick’) would be scrapped and that he would instead look to a more effective practical plan to tackle small boat crossings and irregular migration. This will involve establishing a Border Security Command staffed with specialist investigators, intelligence officers and police officers, to assist with controlling the borders, and target smuggler and trafficking gangs. We can also expect negotiations with the EU on security cooperation, returns and family reunion, as well as seeking returns arrangements with other countries.

The government also intends to increase the asylum caseworking team to clear the case backlog and set up a Returns and Enforcement Unit of 1,000 staff to expedite removals to safe countries. It has also pledged to help refugees in their home regions. Although still unclear, this may indicate that the government is willing to consider safe and legal routes for refugees. It remains to be seen whether (and to what extent) elements of recently enacted illegal migration legislation, which criminalises irregular migration and significantly hinders the ability to claim asylum in the UK, may be reviewed.

Digitalisation

The new administration has been left to see the digitalisation strategy through to completion. Physical biometric residence permits (BRPs) are expiring at the end of this year to be replaced by eVisas (a form of digital-only immigration permission). BRP holders must actively submit an application to replace their document with an eVisa so there will likely be a rush of eVisa applications in the coming months. We do not yet know when the eVisa system will be fully operational nor, more concerningly, what safeguards will be in place to avoid another Windrush scandal, given that those without physical or digital evidence of their immigration status could face challenges in accessing work, property or public services, as well as disruption to travel. This project will therefore likely be a high priority.

In addition, the full rollout of the electronic travel authorisation (ETA) scheme will require non-visa nationals to obtain permission to travel before visiting the UK. A handful of countries are already using the scheme. However, it is not known when and how other nationalities will be required to obtain ETAs before travel. This is a huge undertaking given that the UK anticipates more than 38 million visits by overseas nationals in 2024 alone.

Conclusion

As the new government seeks to provide more detail on the immigration agenda, it is evident that reducing net migration, discouraging the reliance on overseas workers, and strengthening the asylum process and borders will be key priorities. Dealing with digitalisation challenges and the newly introduced ETA will also need due attention as unfinished projects from the former administration.

With input and recommendations from a strengthened MAC, backed by sector engagement and collaboration with government departments and industry strategists, we may see a change in the immigration landscape which more closely aligns with the economy’s needs at large.

 

Zeena Luchowa is a partner at Laura Devine Immigration, London