

Impacts of the new Labour Government on UK Immigration
What are the impacts of the new Labour Government on UK Immigration?
It has already been a busy start to the year for changes in immigration policy, which has been a key topic in the lead up to the election. Now with a new Labour government in power, we are expecting to see significant further impact and shift in various policy areas.
Over the weekend, as promised, Prime Minister Sir Keir Starmer confirmed the scrapping of UK’s Rwanda migrant deportation plan.
The party’s manifesto promised a “fair immigration system”. Labour’s plan to kickstart economic growth pledged to “reform the points-based immigration system so that it is fair and properly managed, with appropriate restrictions on visas, and by linking immigration and skills policy”. The detail on immigration was distinctly vague compared to other policy areas. However, Labour did make the assertion that the UK economy was overly dependant on workers from abroad to fill skill shortages. Following this, they pledged to reduce net migration.
We look at the pledges and comments made in relation to the key areas:
Work migration/Skilled worker route
Labour has pledged to support the Skilled worker route which enables UK employers to access the global talent pool. Labour says it would ask the Migration Advisory Committee to review the impact of raising the Skilled Worker salary threshold to £38,700, but the ban on care workers' dependants would be retained. Given the recent changes, it is unclear how Labour intends to reform this system further.
A priority for Labour is, restricting the demand for visas, by linking skills policy and immigration policy. Employers and sectors which request high numbers of work visas would have to enact training workforce plans to fill those skills gaps with workers who are already in the UK.
The party does not intend to formally cap any immigration routes but promises there will be appropriate restrictions on visas. Their plan is to “end the long-term reliance on overseas workers in some parts of the economy” by training and upskilling settled workers.
In practice, there is no substantive detail on how this will work. The UK has an immediate skills shortage in many areas, not least in healthcare. Implementing such training plans will take some time, which does not help in the short term.
Labour states it will reform the points-based immigration system so that it is fair and properly managed, with appropriate restrictions on visas, and by linking immigration and skills policy. Again, it is unclear how this will be done.
Labour has stated that abuse of the visa system will not be tolerated, nor will breaches of employment law. The party states that employers who flout the rules will be barred from hiring workers from abroad. Once more, there are no details as to how this differs from the existing restrictions on employers who sponsor migrant workers.
The rhetoric on migration has been increasingly intolerant in recent years and the objective of reducing net migration has taken centre stage. . There has been very little differentiation between the much-needed skilled work visa routes, and those entering the UK illegally. Clarity is needed on exactly how immigration policy will be implemented and what the benefits of any reforms will be to the UK economy.
Student migration
The Shadow Home Secretary, Yvette Cooper, has said that Labour will retain the ban on students’ family members.
The Labour Party has not publicly commented on the review of the Graduate Route.
Family income threshold
This is the minimum income that British citizens and migrants with indefinite leave to remain must earn to bring partners and children from overseas to live with them in the UK.
The dependent income threshold was controversially raised from £18,600 to £29,000 earlier this year and is set to rise further. Labour previously expressed concerns about this increase but has not yet made any pledge to reduce it.
Health care workers
While it is not possible to quantify the scale of exploitation of migrant workers in the care sector, qualitative evidence suggests it is a widespread issue.
Labour has said it would launch a "full investigation" into the treatment of migrant care workers. More broadly, Labour would ban employers which breach employment law from sponsoring migrant workers.
Since March 2024, care workers can no longer bring family members to the UK. The healthcare sector is reliant on migrant workers but, at the same time, Human Rights Act 1998 Article 8 rights are arguably infringed by keeping them away from their families. This is a policy that labour could potentially look to reform.
Immigration fee levels
Migrants applying for UK visas must usually pay fees. The main costs include visa application fees; application fees for in-country visa extensions; the Immigration Health Surcharge; and settlement and citizenship fees.
In October 2023, the Home Office increased the fees for various immigration and nationality applications. The Immigration Health Surcharge (IHS) was substantially increased in February 2024.
The Labour Party has not said whether it would keep application fees and the Immigration Health Surcharge at their current levels.
Asylum
Labour have already demonstrated their commitment to scrapping the Rwanda plan and pledge to implement a practical plan to tackle the ‘small boats’ issue. .
It is pledged that the party will prioritise strong border security and deliver a properly managed and controlled asylum system which returns people who do not have the right to enter or remain in the UK.
Labour has stated it will hire additional caseworkers to clear the asylum backlog, end asylum hotels and restore order to the asylum system.
Labour appears poised to undertake a radical overhaul of the failed asylum system, and seek solutions to manage these issues pragmatically and humanely.
Will Labour tackle current challenges?
In April, the Conservative government increased the general salary threshold for those arriving on Skilled Worker visas by 48% from £26,200 to £38,700. The threshold is discounted to £30,960 if the applicant is applying for a role listed on the new Immigration Salary List or if they are a new entrant to the labour market. This was a sharp increase in salary which placed restrictions on growth of SME’s if they are reliant on migrant workers, as they are not able to bear such salary criteria.
There are various sectors with shortages post-Brexit and following strict immigration laws imposed by the Conservative government, such as healthcare, IT, construction, haulage, engineering, retail, and leisure. Analysis should be carried out to identify areas where organisations are struggling to recruit, and specific immigration routes opened with appropriate salary requirements to assist in filling these gaps.
Comment
As mentioned above, Labour’s pledges have not been as impactful as they could have been in relation to reform of immigration policies. In practice the proposals put forward to date are subject to change, with policy work required.
The Labour Party historically has been associated with progressive stances on immigration policies. Over the years, the party has advocated for a compassionate and inclusive approach to immigration, emphasising the importance of welcoming immigrants while also addressing the challenges that may arise.
This was demonstrated as Sir Keir Starmer confirmed the Rwanda deportation scheme to be "dead and buried", on his first full day as prime minister. The Labour leader said he would end the "gimmick" of deporting migrants arriving in the UK illegally to Rwanda, which was established by the previous Conservative government.
We are hopeful that Labour will implement immigration policy that welcomes the skilled migrant workers the UK needs, while maintaining fair and reasonable restrictions, ending the ‘hostile environment’ of the outgoing administration.
Can we help you?
We have an experienced team of immigration experts who advise a wide variety of clients — from FTSE 100 companies and multinational organisations to individuals — on a full range of immigration issues. Contact us today for expert advice on skilled worker visas.
More articles by Carolyn Bowie
