Since the beginning of 2021, businesses have been struggling to fill skills gaps due to the end of free movement, and the IT sector is no exception. The post-Brexit employer sponsorship system allowed companies to sponsor workers, but recent rule changes in 2024 have made it more difficult. Salary thresholds have increased by almost 50%, fees have gone up, and the shortage occupation list has been replaced with the Immigration Skills List. This has made it challenging to recruit talent, particularly in technology roles, which are crucial for the UK’s growth agenda.
Both major political parties in the recent general election pledged to reduce net migration, with the Labour Party stopping short of setting a target. The rise in salary thresholds for skilled workers is already causing issues in hiring talent, especially in key growth areas like cyber and AI. Further obstacles to recruitment could hinder the technology sector’s growth. Closer ties with Europe, potentially through a youth mobility scheme, may be beneficial.
The new government plans to maintain the previous administration’s policies on reducing net migration and salary thresholds for skilled workers. However, there is a clear focus on upskilling, with the launch of Skills England. Businesses in the IT and engineering sectors should provide input to the Migration Advisory Committee to address their recruitment challenges.
IT businesses must engage with the government and other bodies to address recruitment challenges. Suggestions include sector-specific concessions, short-term visa routes, and solutions for linking skills and visa usage. An efficient immigration system is essential for economic growth, and any changes should aim to streamline processes without unnecessary barriers for businesses.
