Home Office Updates: Sponsor Licence and Skilled Worker Visa Changes in 2025

1. Fewer Eligible Jobs for Skilled Worker Sponsorship
2. Higher Salary Requirements for Sponsorship
3. Changes on the Horizon for ILR via the Skilled Worker Route
4. What Employers and Visa Holders Should Do Next

Understanding the Impact of Sponsor Licence Changes

Recent Home Office updates are bringing significant changes to the UK’s Skilled Worker visa and sponsor licence rules. These reforms will tighten the criteria for sponsoring foreign workers, affecting both skilled migrants and the employers who rely on them. Below, we break down the key changes – from a reduced list of eligible jobs to higher salary requirements – and what they mean for sponsors and visa holders.

Fewer Eligible Jobs for Skilled Worker Sponsorshi

One major change is the increase in the skill level requirement for Skilled Worker visas from Regulated Qualifications Framework (RQF) level 3 (A-level equivalent) back up to RQF level 6 (degree level)mayerbrown.com. In practice, this means many roles previously considered “skilled” enough will no longer qualify for work visas. In fact, as of 22 July 2025, over 100 occupation codes (roughly 111 roles) are being removed from the list of jobs eligible for new Skilled Worker visa applicantsirwinmitchell.comimmigrationbarrister.co.uk. Notably, occupations like chefs, catering and bar managers, dental nurses, teaching assistants, and other roles at RQF 3-5 will no longer be sponsor-able under the new rulescharlesrussellspeechlys.com. Even the recently introduced route to sponsor care workers is being closed due to exploitation concernsimmigrationbarrister.co.ukmayerbrown.com. The government’s aim with these cuts is to focus on higher-skilled roles and “restore proper control” over immigration, in hopes of reducing net migration and encouraging UK employers to train domestic workersimmigrationbarrister.co.uk.

For existing Skilled Worker visa holders, there is some relief in the form of transitional arrangements. If you already hold a Skilled Worker visa (or have a Certificate of Sponsorship issued before the rule change), you can generally continue to extend your visa or change employers even if your job is among those removed from the new eligibility listirwinmitchell.commayerbrown.com. In other words, a migrant already sponsored in a role like Chef (SOC 5434) can still extend their visa under the old rules, but new applicants for that role won’t be accepted after July 2025irwinmitchell.com. These grandfathering provisions are not indefinite, however – the Home Office has indicated they will be reviewed over timeimmigrationbarrister.co.uk. Sponsors and visa holders should be aware that future policy shifts could further restrict extensions for roles below RQF 6.

Higher Salary Requirements for Sponsorship

Alongside the tighter job list, the Home Office is raising salary thresholds for sponsored workers. The general minimum salary (Option A) for Skilled Workers is increasing from £38,700 to £41,700 per yearimmigrationbarrister.co.uk. This means most applicants will need a salary of at least £41,700 (or the specific “going rate” for their job, if higher). Salary discount options (for those with relevant PhDs, new entrants, etc.) have also been adjusted upwards. For example, the new entrant salary floor is now £33,400, and other reduced thresholds range from £28,200 to £37,500 for certain PhD holders under the points-based tradeable criteria immigrationbarrister.co.uk immigrationbarrister.co.uk. In short, employers will face higher wage requirements to sponsor overseas talent. It’s advisable for sponsors to review the pay of any current sponsored employees who are near the minimum, as the going rates for many occupations have also been updated with the latest UK salary datacharlesrussellspeechlys.com. Failing to meet the new salary rules could jeopardize future visa extensions or ILR applications for those workers.

Changes on the Horizon for ILR via the Skilled Worker Route

Looking ahead, the rules for Indefinite Leave to Remain (ILR) – i.e. permanent settlement – after a Skilled Worker visa are expected to become more stringent. Currently, skilled migrants can qualify for ILR after 5 years of continuous residence. However, the UK Government’s recent White Paper has proposed extending this qualifying period to 10 years for workers on Points-Based visas (including Skilled Workers) and their dependent family membersmayerbrown.com. This doubling of the settlement timeline is part of a broader push to ensure migrants make longer-term contributions before earning permanent status. The White Paper suggests there may be a fast-track ILR option for those who make exceptional contributions to the UK economy or society – for instance, by earning above certain salary thresholds or working in strategically important fields – allowing them to settle in less than 10 yearsmayerbrown.com.

These ILR changes are not yet in force. The government has indicated it will consult on the proposal, with any new settlement rules likely coming into effect in 2026 after further details are announcedmayerbrown.com. Importantly, there was no explicit promise that existing Skilled Worker visa holders would be exempt from the longer ILR requirementmayerbrown.com. This has caused concern among migrants and employers alike, since it could apply retrospectively to people already on the 5-year path to ILRmayerbrown.commayerbrown.com. A jump to 10 years would mean many skilled workers have to wait much longer to secure permanent residence, potentially discouraging some high-value talent from staying in or moving to the UKmayerbrown.com. We will know more once the consultation results are published, but for now it’s something on the radar for anyone planning long-term in the Skilled Worker route.

What Employers and Visa Holders Should Do Next

With these regulatory changes, UK employers and sponsors need to act proactively. If you’re a sponsor licence holder, review the new eligible occupation lists to see if any roles you recruit for have been cut. Jobs below graduate level that you could sponsor yesterday might not be eligible tomorrow. In particular, businesses in sectors like hospitality, retail, or care – which relied on roles at RQF 3-5 – will need to adjust hiring strategies or look to the interim Temporary Shortage List for any exceptions. (The government has introduced a Temporary Shortage List of select RQF 3-5 roles deemed vital to the economy, where sponsorship will still be allowed, but this list is time-limited and subject to reviewimmigrationbarrister.co.ukimmigrationbarrister.co.uk.) Sponsors should also ensure any new Certificates of Sponsorship issued align with the higher salary requirements. It may be wise to conduct an internal audit of sponsored employees’ salaries against the new £41,700 threshold and updated going ratescharlesrussellspeechlys.com, making any necessary pay adjustments before extensions or ILR applications.

For skilled migrants currently in the UK, stay informed about your occupation’s status and be prepared for stricter rules when planning your career moves. If your job title will no longer qualify for new visas, you can still extend under transitional rules if you remain with the same employer or switch within the Skilled Worker route before the grace period endsimmigrationbarrister.co.uk. However, any future job change might require moving into a graduate-level role. It’s also prudent to keep an eye on the settlement rules – if the ILR timeline extends to 10 years, you may need to maintain your work visa status longer than originally expected. This makes it all the more important to maintain compliance (no gaps in employment, meet salary and documentation requirements, etc.) throughout your stay.

The sponsor licence and visa requirements in 2025 demand higher skill levels, higher salaries, and potentially more patience on the road to settlement. These changes, drafted with an eye to curbing immigration numbers, will require careful navigation by employers and migrants alike. By staying updated and adapting to the new rules, skilled workers and sponsors can mitigate disruptions. If you are unsure about how these updates affect your situation – whether it’s sponsoring a new hire or planning for ILR – consider seeking professional immigration advice to chart the best path forward under the evolving framework.

In conclusion, the Home Office’s latest reforms mark a shift towards a more restrictive Skilled Worker regime, with significant sponsor licence changes. The sponsor licence and visa requirements in 2025 demand higher skill levels, higher salaries, and potentially more patience on the road to settlement. These changes, drafted with an eye to curbing immigration numbers, will require careful navigation by employers and migrants alike. By staying updated and adapting to the new rules, skilled workers and sponsors can mitigate disruptions. If you are unsure about how these updates affect your situation – whether it’s sponsoring a new hire or planning for ILR – consider seeking professional immigration advice to chart the best path forward under the evolving framework.