Election results 2024: What changes can employers expect?
Net migration figures
The headline, to much of the conversation on immigration, was Labour’s assertion that the UK economy has become overly dependent on workers from abroad to fill skill shortages, resulting in net migration reaching record highs – more than triple that at the last election in 2019.
Like many previous Conservative governments, Labour has pledged to reduce net migration; however, no specific target for net migration was indicated. Instead, it has only committed to ensuring the overall level is “properly controlled and managed".
No specific policy proposals have been indicated by Labour as to how it will seek to reduce net migration, but its manifesto points to the following key areas of focus:
Reform of the Points Based System
Labour has committed to reforming the points-based immigration system so that it is “fair and properly managed.” It will aim to place appropriate restrictions on visas by linking immigration and skills policy.
The original “points based system” was introduced in 2009, introducing a system where applicants needed to obtain points for various factors such as having an appropriate salary, meeting the English language requirement, and having a Certificate of Sponsorship for a specific appropriately skilled job offer from a sponsor licence holder. The most recent implementation of the UK’s “points based system” was introduced on 1 January 2021 following the end of the European Union freedom of movement on 21 December 2021. Further sweeping changes to the new post-Brexit Points Based Immigration System were implemented on 4 April 2024 in order to reduce net migration by significantly increasing salary thresholds.
Given the previous changes already made to the Points Based system in an attempt to reduce net migration, it is unclear how Labour intend to reform the Points Based System further. The only detail provided is that the new government will link immigration policy to skills policy, to ensure that migration to address skill shortages triggers a plan to upskill workers and improve working conditions in the United Kingdom.
Reducing abuse of the visa system by employers/recruitment agencies
Labour has stated that it will not tolerate abuse of the immigration system by employers or recruitment agencies, and will not stand for breaches of employment law. In particular, employers who flout the rules will be barred from hiring workers from abroad.
Given the scope of changes to employment law Labour has indicated it will implement immediately, it will be interesting to see whether and what specific changes will be introduced in relation to immigration, to achieve this stated goals. Currently UK sponsor licence holders can have their sponsor licence downgraded or revoked for breaches of UK immigration law as well as face a bar from hiring migrant workers. Employers in the UK can also already be fined up to £60,000 per worker for repeat instances of illegal working.
Changing UK regulatory framework for immigration
Labour has pledged to strengthen the Migration Advisory Committee and establish a framework for joint working with skills bodies across the UK, the Industrial Strategy Council, and the Department of Work and Pensions. It has stated that it will end long-term reliance on immigration in some parts of the economy by bringing in work and training plans, specifically highlights sectors where upskilling and training for resident workers will be implemented, such as health and social care, and construction. Both sectors have been heavily impacted the UK’s withdrawal from the European Union and face large skill shortages in the UK.
Additionally Labour has outlined a number of commitments to supporting people back into work, such as bringing the Jobcentre Plus and National Careers Service together, and “making work pay.” While these proposals are not directly linked to immigration, if Labour is successful in increasing employment across the UK, this may also help to achieve its stated pledge to reduce reliance on overseas workers and ultimately reduce net migration.