New report criticises changes to skilled worker visa rules

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Changes to the UK’s skilled worker visa rules introduced in spring 2024 were made without full analysis of the potential consequences for different sectors, including construction, according to the National Audit Office (NAO).

The NAO’s latest report, titled Immigration: Skilled Worker visas, examines how the Home Office manages the skilled worker visa route, and whether the system is being effectively monitored and managed.

The skilled worker visa route is a flexible mechanism which allows government to adjust entry requirements to balance immigration policy with the need to address skills shortages in the UK.

In 2024, the number of skilled worker visas issued fell, with 252,700 fewer compared with 2023 – a 50% reduction.

While the route continues to support many employers in recruiting overseas workers, the Home Office has made changes without a detailed understanding of potential impacts across different sectors and regions, according to the report.

Immigration and skills policies

The report also concludes that the Home Office and departments have not always collaborated effectively on the role that immigration plays across different sectors of the labour market.

Figures show the changes have reduced use of the route by key sectors, including construction and architecture.

Commenting on the findings, Gareth Davies, head of the NAO, said: “The Home Office, and departments, must make better use of data to understand the impacts of changes to the skilled worker visa route, improve customer experiences and prevent the exploitation of visa holders.

“Without this understanding, it cannot ensure value for money in managing the visa system.”

The Home Office has commissioned an evaluation of the route, with a report expected this year.

Key recommendations

The NAO has made several recommendations aimed at helping the Home Office strengthen its stewardship of the system. These include:

To better understand whether it is meeting its objectives, the Home Office needs to complete and publish its evaluation of the skilled worker visa route within the next three months.

By the end of 2025, the Home Office should complete an assessment of what happens to people at the end of their visa period.

In the next six months, the Home Office should work with the Migration Advisory Committee, Skills England, the Industrial Strategy Council and Labour Market Advisory Board to agree how to address skills shortages across the labour market.

Strengthen its approach to tackling non-compliance with visa conditions and potential labour market abuses, including evaluating non-compliance risks when considering any expansion of the skilled worker visa route to include new occupations.

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