Clara Gautrais is a senior associate and Sean Pearce is an immigration paralegal at Fragomen
In May, the government outlined a series of proposals in a white paper aimed at reducing net migration and incentivising businesses to recruit domestic talent. The plans affect every major visa route, including work, study, family and settlement. Although timelines for implementation remain unclear and depend on changes to immigration rules, the ensuing uncertainty has highlighted the need for businesses to respond to the white paper and prepare for an increasingly compliance-driven immigration system.
“It is essential that construction firms plan their domestic recruitment now to bridge the gap”
The proposals are likely to be most acutely felt in the construction sector, as immigration costs are set to continue to increase, and several construction roles may either be time-limited or no longer eligible for sponsorship. This will place further pressure on construction firms already working to meet the government’s ambitious housebuilding targets.
The most significant proposal for the construction sector is the planned increase to the minimum skill level for sponsorship under the skilled worker visa. The plan would raise the skill level back to Regulated Qualifications Framework (RQF) Level 6, which is degree-equivalent, from the current RQF3, which is A-level equivalent. Statistics in the white paper show that most skilled worker visas granted in construction since spring 2024 were for applicants below degree level. As a result, businesses may need to revise their workforce-planning strategies and continue to upskill their employees.
Listing shortage roles
The government also intends to limit sponsorship in lower-skilled roles to occupations with long-term shortages, which may be subject to time limits or caps. The independent Migration Advisory Committee will continue to advise on this, and in its previous consultation it identified several construction-specific roles in shortage. The Shortage Occupation List was significantly reduced in April 2024, limiting it to the roles set out in the Immigration Salary List. The government now plans to abolish this list as well.
The list currently includes roles such as bricklayer, roofer and stonemason. If these remain sponsorable, they would likely no longer benefit from lower salary thresholds. Their potential removal, despite their importance to the housing industry, would complicate workforce planning as the government pursued its five-year delivery target of 1.5 million new homes. It is essential that construction firms plan their domestic recruitment now to bridge this gap.
The government is urging affected businesses to increase domestic recruitment and develop workforce strategies in collaboration with trade bodies, reducing reliance on overseas workers. As part of this approach, it has set out plans to increase the required level of English language competence for skilled workers, while continuing to increase the cost of sponsoring foreign workers.
The Immigration Skills Charge will increase from £1,000 to £1,320 per year for medium-to-large companies and from £364 to £480 per year for small firms. Sponsors must cover this cost and cannot pass it on to the applicants. The minimum residence period for settlement will also rise from five to 10 years, effectively doubling the overall cost of sponsorship.
As immigration policy continues to shift, construction businesses should remain responsive to sweeping changes and carefully consider potential impacts to their budgets and workforce strategies.
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