July 2025 Immigration Rule Changes: Detailed Guide for UK Sponsor Licence Holders
The UK Home Office has announced significant changes under HC 997, effective from July 2025, marking the first phase of the Government’s May 2025 White Paper, “Restoring Control over the Immigration System.” These reforms aim to reduce net migration, align sponsorship with domestic skills priorities, and address non-compliance concerns in lower-wage sectors.
For Sponsor Licence holders, these changes are operationally significant, impacting role eligibility, salary levels, HR systems, and sponsor compliance obligations.
Implementation Timeline
- 1 July 2025: Changes to the Afghan Relocation and Assistance Policy (ARAP) came into force.
- 22 July 2025: All other HC 997 rule changes take effect.
- Certificates of Sponsorship (CoS) issued before 22 July 2025 will be assessed under old rules, allowing businesses with pending processes to complete them without disruption.
Why These Changes Matter for Employers
The Government aims to align UK migration with high-skilled, high-paid roles while reducing migration to lower-wage roles. For employers, this means sponsorship systems must now reflect higher salary thresholds and the new RQF Level 6 requirement for Skilled Worker visas.
Failing to update processes can lead to refused visa applications, Home Office audits, and potential issues with the sponsor licence.
Employers should review their recruitment strategies, ensure that HR teams understand the updated requirements, and align the issuance of CoS with the new rules to avoid compliance risks and protect their ability to sponsor overseas talent under the revised immigration system.
Skilled Worker Sponsorship: Shift to RQF Level 6
From 22 July 2025, Skilled Worker sponsorship will only be available for roles at RQF Level 6 (bachelor’s degree level) and above. This change removes approximately 180 lower-skilled occupations that were previously eligible under RQF Levels 3 to 5. Employers will need to review their sponsored workforce and future recruitment plans to ensure that roles intended for sponsorship meet this revised skill level requirement.
Transitional arrangements will allow current Skilled Worker visa holders to extend their visas, change employers, or take supplementary employment in RQF Level 3-5 roles. However, the Government has indicated that these arrangements will be reviewed in due course and may not remain in place indefinitely.
This shift will require HR and recruitment teams to revisit role descriptions, SOC code classifications, and candidate screening processes to ensure compliance with the new eligibility criteria.
Increases to Salary Thresholds
The July 2025 changes bring increases to minimum salary thresholds for Skilled Worker sponsorship across all applicable bands. These thresholds align with updated Annual Survey of Hours and Earnings (ASHE) data and apply without transitional concessions.
- Band A, which covers most graduate-level occupations at RQF Level 6 and above, will increase from £38,700 to £41,700.
- Band B, applicable where the sponsored individual has a PhD relevant to the role, will rise from £34,830 to £37,500.
- Bands C, D, and E, which cover new entrants, STEM PhD holders, and postdoctoral roles, will increase from £30,960 to £33,400.
- Band F, for specified health and education roles, will rise from £29,000 to £31,300,
- Band G, used for certain shortage and transitional roles under the Temporary Shortage List and Home Office concessions, will increase from £26,100 to £28,200.
Employers must note that only the first 48 hours of work per week can be counted towards the salary calculation, even where the employee works additional hours. It will be essential for sponsors to review salary levels against these thresholds when issuing CoS after 22 July to avoid refusals and compliance risks.
Implications for Sponsor Licence Holders
These changes mean that employers will need to review their sponsorship strategies and budgets to ensure they can continue to meet sponsorship requirements under the revised thresholds. Salary offers made to prospective sponsored workers will need to reflect these new rates to prevent delays in visa processing and reduce the risk of refusals that could trigger Home Office scrutiny.
Furthermore, businesses will need to review their HR and compliance systems to ensure alignment with the revised rules. This may include updating sponsorship process documentation, training HR staff on the new thresholds, and revising internal compliance checklists used during the sponsorship process.
SOC Code Updates and Going Rates
The Skilled Worker sponsorship framework uses SOC 2020 codes to determine eligibility and salary benchmarks. Under the July 2025 changes, the Home Office has updated eligible SOC codes and their associated going rates, reflecting the shift to RQF Level 6 and the latest ASHE data.
Tables 1, 2, and 3 now list eligible codes for RQF Level 6 and above, using median and 25th percentile ASHE rates as appropriate, while Table 3 continues to cover health and education roles. Transitional Tables 1a, 2aa, and 3a enable specific RQF Level 3-5 roles to remain eligible under transitional arrangements for workers who have continuous Skilled Worker permission granted before 22 July 2025.
Employers should check that the SOC code assigned to each role accurately reflects job duties and the revised eligibility under the new framework, ensuring that salary offers align with the updated going rates to prevent CoS rejections.
For more info: Immigration Rules – Immigration Rules Appendix Skilled Occupations – Guidance – GOV.UK
Immigration Salary List and New Temporary Shortage List
The updated Immigration Salary List (ISL) identifies roles that qualify for reduced thresholds under Skilled Worker sponsorship, helping employers manage their sponsorship budgets while remaining compliant.
A new Temporary Shortage List (TSL) has also been introduced, allowing sponsorship of certain sub-degree roles critical to the UK’s industrial strategy until 31 December 2026.
However, workers sponsored under the TSL cannot bring dependants, and the usual salary and visa fee discounts do not apply. The Migration Advisory Committee will review the TSL before its expiry, meaning employers should monitor potential changes to planning for these roles.
Employers should confirm whether planned sponsorship roles are included within the ISL or TSL, understand associated restrictions, and plan recruitment accordingly.
Closure of Overseas Recruitment for Care Workers
From 22 July 2025, the Home Office will close overseas recruitment for care workers and senior care workers, citing concerns over non-compliance and exploitation in the sector. This change means employers in the care sector can no longer issue CoS for overseas applicants under these roles.
However, in-country switching will remain possible until 22 July 2028 for care workers already legally employed in the UK by a sponsoring employer for at least three months before their application.
Care providers with a Sponsor Licence should assess current care staff and recruitment pipelines to plan lawful switching where possible and develop alternative workforce strategies to mitigate operational impacts.
Global Business Mobility Route Changes
The salary threshold for the Global Business Mobility Senior or Specialist Worker visa will increase from £48,500 to £52,500, aligning with the broader push towards prioritising higher-paid and higher-skilled migration. Employers using this route should review budgets and ensure offers meet the revised threshold for future sponsorship under this category.
ARAP and ACRS Closures
The Afghan Relocation and Assistance Policy (ARAP) has closed to new principal applications, and the Afghan Citizens Resettlement Scheme (ACRS) is no longer accepting new referrals. The government will honour commitments to eligible individuals already in the system, but no new applications will be permitted. Employers involved in these sponsorships should ensure any pending cases meet procedural deadlines.
Changes to Parental Leave Provisions
The Home Office has clarified that neonatal care leave is now explicitly included under Part 9 of the Immigration Rules, aligning with existing maternity, paternity, and shared parental leave. Sponsors must continue monitoring employees’ leave periods to ensure compliance while avoiding unnecessary sponsorship action when employees take authorised leave.
Preparing for Compliance Under HC 997
These changes require employers to undertake a detailed review of their sponsorship processes, including role eligibility, salary thresholds, SOC code classifications, and updates to their HR systems. Training HR teams on the new requirements will be crucial to prevent administrative errors that may trigger Home Office scrutiny or non-compliance findings.
Employers should also review their recruitment strategy to address the impact of the skill threshold changes and the closure of overseas care worker recruitment, while planning salary budgets to meet the increased thresholds across all bands.
The Home Office has indicated that these reforms are part of a broader recalibration of the UK immigration system, with further reviews by the Migration Advisory Committee expected. Businesses relying on sponsored workers should remain vigilant and prepared to adapt as policy evolves.
How We Can Assist
At Sponsor Licence UK, we support businesses in maintaining compliance during periods of significant immigration change. We can:
- Audit your sponsorship practices against the new HC 997 requirements.
- Advise on SOC code classifications and revised going rates.
- Guide your HR teams through system updates and procedural changes.
- Help care sector sponsors plan lawful in-country transitions while managing recruitment risks.
- Advise on budget planning for salary threshold increases to prevent future non-compliance.
For expert guidance on aligning your sponsorship strategy with the July 2025 changes, contact us today. We are ready to help you protect your sponsor licence while enabling your business to continue accessing international talent within the new regulatory framework.
