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Immigration will be a board-level issue for UK
\nbusinesses in 2026. An expanded illegal working regime will most
\nlikely affect every UK business, as will new rules on earned
\nsettlement. There will also be further tightening across key
\nimmigration routes, including sponsored work routes and business
\nvisitors. On top of that, the Home Office plans further enforcement
\nmeasures for sponsors.<\/p>\n
Major changes are also anticipated in employment law, some of
Businesses that take a strategic approach to proactively
Short on time? Here are the key takeaways for businesses<\/p>\n
A summary of key 2025 changes that will have an impact in
Many of the changes we expect to see in 2026 follow on from work
Expanded illegal working regime<\/p>\n Affects all businesses<\/p>\n What happened in 2025?<\/p>\n The Border Security, Asylum and Immigration Act 2025 was passed on 2 December 2025<\/a>. It forms the basis
All businesses are likely to be affected by the planned changes
What’s expected in 2026?<\/p>\n Expanded right to work checking obligations and illegal
The expanded illegal working regime is expected to be
As part of implementing the provisions, the Home Office will
Earned Settlement<\/p>\n Affects all businesses<\/p>\n What happened in 2025?<\/p>\n Proposals for an earned settlement model would extend the
Earned settlement has major implications for workforce planning
What’s expected in 2026?<\/p>\n Implementation of the earned settlement
We expect the changes to start to come into force from April
You should understand what’s being proposed and map out a
The changes will require sustained, long\u2011term engagement
If you sponsor workers, the period of sponsorship may be shorter
For a more detailed list of action points for Skilled Worker
Skilled Worker route amendments<\/p>\n Affects sponsors<\/p>\n What happened in 2025?<\/p>\n The July 2025 changes<\/a> included a sharply higher
What’s expected in 2026?<\/p>\n Revision of general and occupation-specific salary
The Migration Advisory Committee (MAC) has recently recommended<\/a> maintaining the general threshold
A separate general threshold of at least \u00a330,900 is
A revised new entrant salary requirement of \u00a333,400 is
Occupations on national pay scales should remain paid in line
The MAC recommends that salaries for Health and Care roles not
Abolition of the salary discount for roles requiring a PhD is
The Home Office has not yet confirmed whether and when any of
Temporary Shortage List review<\/p>\n The current TSL is due to expire on 31 December 2026. A
Equality (Race and Disability) Bill<\/p>\n This could require equal pay for sponsored and non sponsored
Increased costs and cost-related compliance<\/p>\n Affects sponsors<\/p>\n What happened in 2025?<\/p>\n The Immigration Skills Charge<\/a> increased by 32%
These changes increase the cost burden to sponsors, who in
Since April 2025, certain salary deductions, loan repayments and
What’s expected in 2026?<\/p>\n Extension of the ban on passing on costs to other
The ban currently only applies to Skilled Workers, but the plan
General compliance changes<\/p>\n Affects sponsors<\/p>\n What happened in 2025?<\/p>\n Here’s a summary of small changes with significant impact
What’s expected in 2026?<\/p>\n Sponsor licence compliance to remain a focus for the
We anticipate that suspension and revocation action for sponsors
We strongly recommend you proactively review your sponsor
Maximum duration to increase for sponsor licence action
This will increase from 3 months to 12 months, with revocation
Worker protections<\/p>\n Affects sponsors<\/p>\n What happened in 2025?<\/p>\n Publication of the government’s immigration White Paper<\/a>, which includes proposals for new
What’s expected in 2026?<\/p>\n Changing sponsors may become easier for
The government will consider making it easier for sponsored
This change, if implemented, may require sponsors to reevaluate
Fair Work Agency to enforce employment laws<\/p>\n The Fair Work Agency<\/a> will be established in April
Visitors<\/p>\n Affects all businesses<\/p>\n What happened in 2025?<\/p>\n Full rollout of the Electronic Travel Authorisation (ETA)<\/a> for
What’s expected in 2026?<\/p>\n Full enforcement of ETAs<\/p>\n This will go live from 25 February 2026<\/a> following the end of an
ETA-required passengers will not be able to board without one,
We anticipate more complex cases may come to light once ETA is
Greater scrutiny of business visitors<\/p>\n As sponsored work routes tighten, we anticipate more active
You should ensure that the scope of activities for visitors is
Contact a member of our immigration team<\/a> if you need assistance with
eVisas on approval<\/p>\n Affects all businesses<\/p>\n What happened in 2025?<\/p>\n The issuing of eVisas on approval happened for Skilled Workers
What’s expected in 2026?<\/p>\n Further rollout of eVisas<\/p>\n
\nwhich will interact with immigration developments. For details of
\nthese, see: What’s happening in employment in
\n2026?<\/a><\/p>\n
\nassessing and mitigating immigration and employment exposures will
\nbe best positioned for the year ahead.<\/p>\n
\nYou should assess how the expanded illegal working regime will
\napply to you and get ready for its implementation in 2026. This is
\nlikely to require a review of your contracts and policies relating
\nto how you engage workers, and investment in additional compliance
\nresources.
\n
\nYou should review how your business may be affected by the
\ngovernment’s earned settlement proposals. This will require you
\nto understand which of your staff are currently in the UK on a
\nsettlement route (whether sponsored or non-sponsored) and to
\nconsider how to engage with them on their future eligibility for
\nsettlement. You should also consider how the changes may affect
\nyour recruitment and retention strategy for overseas talent.
\n
\nYou should take care to adequately assess the activities and
\nbroader eligibility of any business visitors you intend to invite
\nto the UK, including taking immigration advice to check
\ncompliance.
\n
\nIf you are a sponsor licence holder, you should:
\n
\n
\nReview your internal HR systems and processes to ensure sponsor
\ncompliance risks (including illegal working risks) are proactively
\nidentified and addressed; and
\n
\nUnderstand how your business may be affected by the many recent
\nand upcoming changes to sponsored immigration routes, including
\nbudgeting for additional application costs.
\n
\n
\n
\nMonitor Home Office announcements or sign up to receive our updates<\/a> so you
\ndon’t miss a thing.
<\/p>\n
\n2026<\/p>\n
\nthat started last year. We’ve summarised these in the
\naccordions below.<\/p>\n
\nof the government’s planned expansion of the existing illegal
\nworking regime, bringing it one step closer to implementation.<\/p>\n
\nto a greater or lesser extent, depending on the range of
\narrangements used to engage workers.<\/p>\n
\nworking liability risks<\/p>\n
\nimplemented in 2026. It will cover non-employees engaged by
\nbusinesses, both directly and indirectly. This will dramatically
\nincrease the level of illegal working risk exposure for
\nbusinesses.<\/p>\n
\nissue substantial revisions to their guidance documents, which
\nbusinesses will need to understand and comply with. Read more here<\/a>.<\/p>\n
\nstandard 5 year qualifying period for settlement to at least 10
\nyears in many cases. The Government consultation<\/a> runs until 23:59 GMT
\non 12 February 2026.<\/p>\n
\nacross sponsored and non sponsored populations. Read more in our
\nseries of articles covering the minimum mandatory requirements<\/a>, the qualifying period<\/a>, the impact on Skilled Workers<\/a>, the impact on British Nationals (Overseas)<\/a>,
\nand the proposal not to have transitional arrangements<\/a>.<\/p>\n
\nmodel<\/p>\n
\n2026, but further clarifications on timelines are awaited from the
\ngovernment. Those who anticipate becoming eligible for settlement
\nbefore April 2026 should plan to apply at the earliest
\nopportunity.<\/p>\n
\ncontingency plan as early as possible. This can then be finalised
\nonce the earned settlement policy is published.<\/p>\n
\nwith affected staff members. This is likely to require a review and
\nalignment of your immigration and employment law policies.<\/p>\n
\n(for some high earners) or longer than it is currently. You will
\nneed to consider budgeting for longer sponsorship in some
\ncases.<\/p>\n
\nsponsors, see our article here<\/a>.<\/p>\n
\nsalary requirement, the introduction of a Temporary Shortage List
\n(TSL), and the removal of many medium skilled occupations from
\neligibility. Transitional arrangements apply.<\/p>\n
\nthresholds<\/p>\n
\nat \u00a341,700, but reducing occupation-specific thresholds from
\nthe 50th to 25th percentile.<\/p>\n
\nrecommended for TSL roles (on the assumption that these roles will
\nnot lead to settlement in future), with occupation-specific
\nthresholds set at the 50th percentile.<\/p>\n
\nalso suggested, with no occupation-specific threshold being applied
\nto this group. The MAC has also suggested a range of options for
\nextending the duration of the new entrant beyond 4 years, and
\nmaking the discount available for the full period independently of
\nthe length of the initial visa.<\/p>\n
\nwith these, and have a general salary threshold set at Band 5 in
\nthe lowest-paying nation.<\/p>\n
\non national pay scales should be set in the same way as for other
\nSkilled Worker roles, potentially with some transitional
\narrangements for roles below degree level.<\/p>\n
\nalso recommended.<\/p>\n
\nthe recommendations may be adopted. Implementing threshold
\nreductions may be considered too risky politically.<\/p>\n
\nreplacement list is expected to be implemented before this, taking
\ninto account recommendations from the MAC’s review of the TSL<\/a> which is due to be published
\nin July 2026.<\/p>\n
\nworkers, which may clash with sponsorship salary thresholds. Timing
\nis uncertain, so factor in possible pay alignment pressure in
\n2026.<\/p>\n
\nfrom 16 December 2025, adding \u00a31,600 over 5 years for a
\nmedium or large sponsor of a non exempt worker. Sponsor priority
\nservice fees also increased from \u00a3200 to \u00a3350 per
\nrequest.<\/p>\n
\naddition must not pass specific sponsorship costs onto Skilled
\nWorkers (including in all circumstances the ISC).<\/p>\n
\ninvestments in the sponsoring business have been excluded from
\ncounting towards Skilled Worker salary thresholds. Read more on
\nthis development in our article<\/a>.<\/p>\n
\nsponsored work routes<\/p>\n
\nis for it to be rolled out to other sponsored work routes. Read
\nmore in our article<\/a>. We can expect to see this happen in
\n2026.<\/p>\n
\nthat sponsors should be aware of.<\/p>\n
\nExtended cooling off period: A cooling off
\nperiod of at least 2 years applies to businesses whose licence is
\nrevoked for repeated non compliance or serious immigration
\nbreaches, during which a fresh licence cannot be obtained.
\n
\nWider responsibility for compliance: A Person
\nwith Significant Control of a sponsoring business is now within the
\nscope of the Home Office’s considerations on licence grant,
\ncompliance, and any suspension or revocation action.
\n
\nAccess changes to the Sponsor Management System
\n(SMS): The primary Level 1 User of the SMS must be an
\nemployee, director, or partner of the sponsoring business and a
\nsettled worker. Transitional arrangements apply to sponsors who
\napplied for their licence before 31 December 2024.
<\/p>\n
\nHome Office<\/p>\n
\nwill remain high and could further intensify if there is
\nnon-compliance with the expanded illegal working regime.<\/p>\n
\nlicence compliance, including identifying if a new sponsor licence
\nis required due to historic group restructuring. This is an aspect
\nthe Home Office is scrutinising more routinely.<\/p>\n
\nplans<\/p>\n
\naction to follow if a sponsor fails to pay for the action plan, the
\naction plan is not complied with, or the sponsor fails to make the
\nimprovements required by the end of the action plan.<\/p>\n
\nworker protections.<\/p>\n
\nworkers<\/p>\n
\nworkers to move between sponsors during the validity of their
\nimmigration permission, with a view to reducing the risk they will
\nbe exploited by being ‘trapped’ with an abusive
\nsponsor.<\/p>\n
\ntheir immigration and employment policies to retain staff.<\/p>\n
\n2026 (but will only become fully operational once the
\nresponsibilities of the agencies it replaces are transferred). Its
\nenforcement powers will be applicable to businesses found guilty of
\nserious employment law breaches, and the Home Office intends to
\nback this up with ‘tougher rules on sponsors flouting employment
\nlaw<\/a>‘.<\/p>\n
\neligible visa-free nationalities from 2 April 2025. This is a
\npre-entry requirement for visit and other short-term purposes. For
\nfurther information on ETAs, see our article here<\/a>.<\/p>\n
\nimplementation period.<\/p>\n
\nso business travel policies should factor in a process for checking
\neligibility and applying in good time.<\/p>\n
\nfully enforced. For further information on how we can help with
\nthese, see here<\/a>.<\/p>\n
\nscrutiny of the genuine visitor requirements in business visitor
\napplications and arrivals.<\/p>\n
\nwell defined and checked from an immigration perspective in
\nadvance, that visa applications are well-prepared and that
\ninvitation letters are clear and accurately reflect the proposed
\nactivities.<\/p>\n
\ncompliance advice or with an application.<\/p>\n
\ninitially and was then extended across other work routes and
\ndependants. It has a direct impact on right to work processes and
\nrecord keeping. This development furthers the government’s goal
\nof operating a fully digital immigration system.<\/p>\n