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What is the new Immigration Salary List, which replaced the Shortage Occupation List?

By Amer Zaman

on June 12, 2024

Read Time: 7 Minutes

With the parties’ general election campaigns well underway by the time of this article being written, it is fair to say that immigration has continued to be a big topic of recent political discussion in the UK – and indeed, the subject of much change in government policy.

One “flashpoint” in this regard was Home Secretary James Cleverly’s announcement in December 2023 of a new package of measures designed to drive down net migration, which has reached historical highs over the last few years.

One of the changes that the Home Office outlined back then was the replacement of the Shortage Occupation List (SOL) with a new Immigration Salary List (ISL). This was part of the Government’s announcement that it would end the 20% going-rate salary discount for shortage occupations in order to “crack down on cut-price labour from overseas”.

The Home Office did say, however, that the ISL would still have a general salary discount. The department’s media release at the time went on to say that the independent Migration Advisory Committee (MAC) would review the new list against the heightened salary thresholds, with the intention of lowering the number of listed occupations.

A quick introduction to the Shortage Occupation List

The Shortage Occupation List was a list of jobs for which there was judged to be a lack of skilled workers available within the UK resident labour market, as determined by the Government.

The inclusion of a particular role on the SOL meant that UK employers were able to tap into certain advantages when recruiting overseas workers for the given occupation. These benefits included lower application fees for sponsored work visa applications, as well as reduced minimum salary requirements for the foreign nationals taking on listed roles.

The idea behind the SOL was that by making it easier and more affordable for UK employers to access migrant talent, they would be better able to fill certain vacancies for which it could be difficult to find suitably qualified UK nationals.

As a consequence of being able to hire people with the skills that addressed the given employer’s workforce needs – so the thinking went – the organisation in question would be in a stronger position to drive higher productivity and grow.

However, with the Government having been under pressure in recent times to do more to lower net migration that Mr Cleverly described as “far too high”, ministers had been putting a more intense spotlight lately on the SOL, asking themselves whether it still met the UK’s needs.

What did the Migration Advisory Committee say about the Shortage Occupation List?

On 3^rd October 2023, the MAC released its full review of the Shortage Occupation List for the Skilled Worker visa route. The MAC took the view that the SOL – the role of which, in any case, had significantly diminished under the Skilled Worker visa category compared to the pre-Brexit Tier 2 (General) route – had ceased to be fit for purpose, and should be abolished.

The MAC justified its stance on the basis that low-wage occupations being able to access the Skilled Worker route brought a number of risks, including:

Migrant workers potentially being exploited due to their immigration status being tied to their employer – a situation that rendered them vulnerable to unacceptable working conditions
Low-wage workers – especially those who had family members accompanying them in the UK – constituting a net fiscal loss to the UK
Lack of use in practice, because the application fees and administrative burdens were too high for low-wage workers to shoulder.

What are the changes to the Shortage Occupation List in 2024?

With effect from 4^th April 2024, the UK Government replaced the Shortage Occupation List with the Immigration Salary List. The ISL is a new list of occupations which have a discounted salary threshold; more information on the currently listed roles can be found in the relevant section of the UK Immigration Rules.

The Government decided, in light of the MAC’s recommendation to reform the SOL, to abolish the 20% going-rate discount. This was done to prevent UK employers from paying foreign nationals less than what UK workers would receive in shortage occupations.

In the Home Office’s words, “roles on the list are only included where they are skilled and in shortage, and if it is sensible to include them considering the efforts being made by sectors to invest in the resident workforce. Inclusion on the list must not serve to reduce pay and undermine the recruitment of British workers.”

The implications of the SOL and ISL changes for employers and candidates

If you are a UK employer or a candidate seeking to navigate the latest changes in relation to the ISL and minimum salary requirements, we would urge you to bear the below in mind:

It is crucial for all industries in the UK to take every possible measure to avoid permanent reliance on migrant talent. It should not be assumed that any particular occupation will remain on the ISL forever. Indeed, when the Government is considering whether to add a specific role to the ISL, a key factor in this might be whether the given sector has a realistic and sustainable strategy for how to respond in the event of the role one day being removed from the ISL
Skilled Worker visa holders who were already in the UK prior to these latest changes to the Immigration Rules being implemented, should be exempt from the new median salary levels when they submit an application to change sponsor, extend, or settle
However, such existing Skilled Workers should still expect their pay to go up at the same rate as UK resident workers, where they will be subject to the updated 25^th percentiles using the most recent pay data when they next submit an application to extend their stay, change employment, or settle in the UK, in line with normal practice
Foreign nationals who wish to come to the UK on a Health and Care Worker visa will not be subject to the specific £38,700 salary threshold requirement that applicants for the Skilled Worker visa must satisfy. The UK Government has taken this approach so that it can continue to attract the healthcare workers required by the NHS and care sector
Exemption from the £38,700 threshold will also apply to workers in national pay scale occupations. Instead, these workers will continue to be subject to their pay scales for their occupation.

What is the new salary threshold in the UK?

The UK Government’s new Immigration Rules took effect on 4^th April 2024. One of the “headline” changes was a big rise in the minimum general salary requirement for new Skilled Worker visa holders, from the previous £26,200 to a new rate of £38,700. This constitutes an increase from the 25^th to 50^th percentile (median) of eligible Skilled Worker occupations under the most recent nominal wage data.

There was also an increase in the going rates for the occupation codes, by the median percentile, based on Annual Survey of Hours and Earnings (ASHE) data from 2023. This equates to a significant rise for many occupation codes.

As a consequence of the removal of the going-rate discount, all occupations on the ISL are now subject to a minimum salary of £30,960. This compares to the £38,700 general minimum salary threshold that applies to roles not on the ISL.

The ISL’s 20% discount on the general salary threshold is subject to salaries not falling below the level of the occupation-specific threshold. However, with the general threshold having been increased, an overall effect is that the Skilled Worker route is now effectively unavailable for many occupations.

In practice, then, an occupation on the ISL needs to pay either £30,960 or the occupation-specific threshold – whichever is higher. The ISL offering a 20% discount to the general salary threshold, but not to the going-rate threshold, does make possible a certain amount of flexibility. However, it also cannot be denied that the ISL is less generous than the SOL in this regard.

The story of the ISL is an evolving one – so you should be vigilant to further changes

With the Immigration Salary List having been put in place so recently, it is subject to continued change. This, in turn, could have further implications for how your organisation engages with and uses the ISL in its potential recruitment of talented workers from abroad.

One recent development, for instance, was the Migration Advisory Committee’s rapid review of the ISL in response to a commission from the Home Secretary in January 2024. The resultant report – dated 23^rd February 2024 – sets out the MAC’s recommendations as to which of the roles on the SOL, as well as those the committee had previously recommended for inclusion in its 2023 SOL review, should be added to the ISL on a temporary basis.

It is expected that a fuller review of the ISL will be conducted later in 2024. Naturally, it also remains to be seen what implications the general election outcome could have for the future evolution of the ISL and the occupations included on it.

Our experts in UK immigration law can help you navigate the latest rules

Whether you are reading this as an employer, a candidate, or an existing foreign-national worker in the UK, we can understand you being confused or unsure about what the exact implications of the latest changes to the UK immigration system might be for you.

To arrange a free consultation that will enable you to discuss these matters – and your case – in greater detail with our award-winning specialists in UK immigration law, please complete and submit our online contact form. You are also welcome to call us, on 0208 215 0053.