How will the new Immigration White Paper change the landscape of the tech sector in the UK?

By Amy Bennett-Mitchell, Senior Associate in Employment & Immigration at RWK Goodman, Tech South West Funding & Finance Partner.

The UK has long been a popular choice for overseas nationals looking to relocate and many highly skilled workers in the tech sector are currently able to obtain sponsorship as Skilled Workers. However, the Immigration White Paper published on 12 May 2025 sets out the government’s plans to change the current Immigration Rules, which will likely make it more costly for sponsors and potentially less attractive for overseas workers who are looking to relocate.  

The current Immigration Rules allow sponsorship in a wide range of tech focused roles including software developers, cyber security experts, web designers, IT managers, analysts and system designers – even an “ethical hacker” can currently apply for a Skilled Worker visa. The Labour government is notionally in favour of attracting the best talent in areas such as tech and science to boost its growth agenda, but the reality of the White Paper is more nuanced. Many of the most attractive conditions of the Skilled Worker visa are set to be amended and will likely affect UK businesses, including the tech sector as set out below:

• Increase to the skill level to RQF level 6 and a focus on upskilling domestic workers - The skill 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. This is unlikely to have a huge impact on the tech sector as the majority of skilled roles in this sector already meet the higher skills threshold and exceed the relevant salary thresholds.
• English language requirements – In an effort to improve integration and community cohesion, the English language requirement for Skilled Workers will be made tougher (increasing to CEFR level B2). For the first time, the requirement will also apply to adult family members who will need to demonstrate an improvement in their language skills when applying to extend their visas or apply for settlement in the UK. The latter may well discourage applicants from wishing to relocate to the UK.
• 10-year route to Indefinite Leave to Remain (settlement) - 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 and administrative 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, however, it is likely that there will be specific carve outs for sectors the government wishes to promote, including the tech sector. There is, however, the possibility that a significantly longer pathway to settlement could dissuade those looking to relocate. 

• Increase to the Immigration Skills Charge – the 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 sponsor and £1,000 per year for a medium or large sponsor. This fee is payable by the sponsor and is payable for each year of sponsorship. An increase to the yearly fee will increase overall sponsorship fees and could be payable for 10-years, before the worker can apply for settlement and no longer requires sponsorship.  

It’s not all doom and gloom…

Although the above changes are intended to reduce the overall number of visa applications, it is likely that the government will continue to prioritise and protect the tech sector. The message from the government has been clear that “attracting the best and brightest” is necessary to encourage innovation and economic growth. 

As a means to achieve this, the government has laid plans to expand the Global Talent and High Potential Individual (HPI) visa routes by streamlining the endorsement process for those in certain sectors, including tech. The hope is that this will lead to easier access to talented individuals who will have applied for their own visas, without needing sponsorship (thus reducing business costs).  

How the Immigration team at RWK Goodman can help 

It is not yet clear how or when the White Paper proposals will be implemented which can make it challenging for businesses to plan, however, the RWK Goodman Immigration team will continue to provide updates on our website and social media channels. Our Immigration team specialises in all aspects of UK immigration law and are on hand to help as needed. 

It is worth noting that the White Paper is also heavily focused on compliance and stronger measures in respect of illegal working. It is therefore more important than ever to ensure that all Sponsor duties are being met, 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. The RWK Goodman team regularly advise on Sponsor Compliance, as well as offering tailored training sessions and mock Home Office audits. 

Alternatively, if you are a UK business considering applying for a Sponsor Licence or an overseas company considering setting up a UK branch, we can advise and assist with applying for the relevant licence and submitting the required visa application.  

If you would like more information or require any advice in respect of the above, please do not hesitate to get in touch with a member of our Immigration Team.