In 2022, the UK saw major political changes, but the country’s immigration policies largely remained focused on attracting skilled workers, particularly in technology, engineering, and digital sectors. Despite these ongoing goals, there were some significant shifts, including the cancellation of the Tier 1 (Investor) visa route, which was scrapped due to concerns over crime and money laundering.
One of the biggest immigration stories of 2022 was the record number of people moving to the UK, with net migration hitting an estimated 509,000 by June 2022. This surge, mainly from non-EU countries and supported by programs for people from Ukraine and Hong Kong, put pressure on the UK government to reduce overall immigration.
As we look into 2023, the government is expected to make smaller adjustments to the immigration system rather than introduce sweeping changes. The key challenge will be balancing public demand to reduce immigration with business needs, especially the pressure to fill labor shortages by bringing in skilled workers from abroad.
Key UK Immigration Trends and Updates for 2023
1. Increase in Sponsor Licenses
Since Brexit, there has been a significant rise in the number of UK businesses applying for sponsor licenses to hire workers from overseas. Over the past two years, the number of businesses registered to sponsor foreign workers has increased by 40%. This change has been driven by two factors: the end of free movement for EU nationals and a shortage of workers in various industries. As labor shortages continue, demand for sponsor licenses is expected to rise even further throughout 2023.
To address this, the Home Office has been processing sponsor license applications more quickly and is set to continue streamlining the process.
2. Skilled Worker Visas
The Skilled Worker visa route remains the most popular and important work visa for overseas nationals. It’s expected that most applicants will come from countries like India and Nigeria. While the UK economy may contract in 2023, it is still seen as a favorable destination for skilled workers. However, businesses are pushing for a reduction in salary thresholds and other criteria to make it easier for more workers to apply.
Possible changes could include lowering salary requirements, reducing the NHS surcharge, and relaxing the English language requirement. These changes aim to help fill key roles in the UK’s shrinking workforce.
3. Increased Immigration Compliance Checks
In 2023, the Home Office is expected to intensify enforcement to combat illegal immigration. This includes increasing raids on businesses suspected of hiring illegal workers. Companies that sponsor foreign workers will also face more frequent checks and spot inspections to ensure compliance with immigration rules.
4. Shortage Occupation List Update
The Shortage Occupation List is set to be updated in 2023. This list includes roles where there is a shortage of workers in the UK. The update may expand the list to include lower-skilled jobs, such as in hospitality, where employers are struggling to recruit domestically. If this happens, there may be adjustments to visa requirements and fees to make it more affordable for workers to apply for visas in these sectors.
5. Global Competition for Skilled Workers
The UK faces stiff competition from other countries like Canada, the US, and Germany, all of which are relaxing immigration rules to attract skilled workers. In 2023, the UK will need to stay competitive by making its immigration system more attractive to global talent.
New visa routes, like the Scale-Up visa, which allows workers to join fast-growing businesses, are expected to gain traction. However, the UK Expansion Worker visa has not been as popular as expected.
6. Investor Visa Changes
The cancellation of the Tier 1 (Investor) visa in 2022 was a significant change, but the government may introduce a new visa for investors. This would allow law-abiding investors to contribute to the UK economy while ensuring greater scrutiny of applicants. While the exact details remain unclear, any new visa route is expected to be more carefully regulated.
7. Self-Sponsorship for Business Owners
Self-sponsorship is a legal process where business owners, investors, and entrepreneurs can sponsor themselves for a UK work visa by setting up a UK company. This option has been growing in popularity, especially among individuals who don’t meet the strict requirements of other visa routes. In 2023, interest in self-sponsorship is expected to continue, as more individuals successfully navigate this process.
8. Trade Talks and Migration
Trade negotiations, particularly with countries like India, remain an important part of the UK’s immigration and economic strategy. The UK is working towards a free trade agreement (FTA) with India, which includes discussions on migration. While migration remains a sensitive issue, both countries are hopeful about reaching an agreement that benefits their economies.
9. Digital Changes in Immigration
A key shift in 2023 is the move towards digital immigration processes. The Electronic Travel Authorisation (ETA) system will be introduced for visitors from the EU and other countries who don’t need a visa to enter the UK. The UK government is also working on digitizing the visa application process, making it easier for both applicants and sponsors to manage their immigration paperwork online.
In addition, the UK will continue to improve its eVisa system, which allows applicants to track their visas and access key information digitally. The goal is to reduce waiting times and improve customer service through AI tools like chatbots and voice assistants.
10. Simplified Family and Settlement Routes
Family visas and pathways to settlement in the UK will also become simpler in 2023, with some changes to the criteria for spouse visas, especially for people joining their partners on student visas.
While net migration figures may decrease slightly, mainly due to a reduction in specific schemes for Ukrainians and Hong Kong nationals, the UK government will continue to face the challenge of balancing public concerns about immigration with the needs of businesses. How these pressures are managed will shape the immigration landscape in the coming year.
For businesses looking to navigate these changes and secure the right visas for their workers, Law and Visas can provide expert guidance and support throughout the process. Contact us today to learn more about how the immigration system is evolving in 2023.
