City firms urged to act fast as immigration rule overhaul looms

The changes include a sharp increase in salary thresholds and a tightening of skills requirements that will significantly impact hiring strategies.
1 min read

City employers are being warned to urgently prepare for major changes to the UK’s immigration system, with sweeping reforms to the Skilled Worker route due to take effect on 22nd July 2025.

The changes include a sharp increase in salary thresholds and a tightening of skills requirements that will significantly impact hiring strategies across financial, legal and professional services firms.

Under the new rules, the minimum skill requirement for sponsorship rises from A-level to degree level, removing around 180 roles from eligibility.

At the same time, the baseline salary threshold for Skilled Worker visas will increase to £41,700, with uplifted minimums also applying to new entrants and shortage occupation roles.

These thresholds will apply immediately to any new Certificate of Sponsorship issued after the 22nd July deadline, with no transition period in most cases.

Laura Devine, managing partner of Laura Devine Immigration, said: “These changes represent one of the most significant resets of the UK’s Skilled Worker route in recent years.

“City firms – especially those that rely on international junior talent – need to act now. There’s a narrow window to assign certificates under the current rules, and beyond that, compliance failures or delays could severely disrupt hiring plans.

“The regulatory margin for error is narrowing, and HR and legal teams need to be fully prepared.”

The firm advised businesses to urgently audit current and planned sponsorship activity, review salary benchmarks, and communicate clearly with internal and external stakeholders.

Additional changes – including new rules on care worker sponsorship, restrictions on bringing dependents, and the replacement of the Immigration Salary List – are expected to create further challenges for organisations with broader mobility needs or operations across multiple sectors.

Jessica Bird

Jessica Bird is Managing Editor of Workplace Journal

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