UK Immigration Law: Key Changes in 2025 and What to Expect in 2026

As we move further into 2026, UK Immigration law continues to evolve at pace. Staying up to date with these changes is essential for workforce planning and compliance. This article summarises the key developments from 2025 and highlights what lies ahead in 2026 and beyond.

Key Dates at a Glance

• 8 January 2026: Higher English language requirement (B2) takes effect for Skilled Worker, Scale-up and High Potential Individual routes
• 2 February 2026: Closing date for Temporary Shortage List call for evidence
• 12 February 2026: Closing date for earned settlement consultation
• 18 February 2026: Closing date for international student levy consultation
• 25 February 2026: Full implementation of Electronic Travel Authorisation (ETA)
• April 2026: Expected implementation of earned settlement changes
• July 2026: Expected publication of MAC's Temporary Shortage List review
• 1 January 2027: Graduate visa duration reduced from 2 years to 18 months

Border Security, Asylum and Immigration Act 2025

The Border Security, Asylum and Immigration Act 2025 received Royal Assent on 2 December 2025. Section 48 of the Act will significantly expand the scope of right to work checks once implemented.

Employers are under an obligation to prevent illegal working. Currently they will be liable for failing to ensure employees have the right to work in the UK. The new provisions will extend this liability to businesses engaging with workers, including contractors, sub-contractors, gig-economy workers, and those on zero-hours contracts - whether directly or indirectly engaged.

The Government consulted with businesses between 29 October and 10 December 2025, with the response not yet published. Importantly, these provisions are not yet in force, and no implementation date has been announced.

We anticipate several steps before implementation, including publication of a revised Code of Practice on illegal working civil penalties, and amendments to the Immigration (Restrictions on Employment) Order 2007. Businesses should prepare for these changes, ensuring they have the correct procedures in place in advance of the implementation.

Increased Immigration Costs

Immigration costs rose substantially in late 2025:

• Immigration Skills Charge increased by 32% from 16 December 2025 (now £1,320 for medium/large sponsors, and £480 for small and charitable sponsors, for the first 12 months)
• Sponsorship management priority service fees increased from £200 to £350 from 11 November 2025
• Sponsor licence priority service fees increased from £500 to £750 from 11 November 2025

These increases should be factored into immigration budgets for 2026.

Changes to Specific Visa Routes

High Potential Individual Route

On 4 November 2025, the number of eligible universities doubled from the top 50 to the top 100 global universities. However, this expansion came with restrictions:

• An annual cap of 8,000 applications (covering both initial entry and in-country applications) was introduced
• From 8 January 2026, applicants must meet the higher B2 English language requirement (up from B1)

Skilled Worker Route

The Migration Advisory Committee (MAC) published its December 2025 ‘Review of salary requirements’ with several recommendations:

• The general salary threshold should remain at £41,700
• Occupation-specific thresholds should be reduced from the 50th to 25th percentile
• The salary discount for PhDs should be removed
• A general threshold of at least £30,900 for roles on the Temporary Shortage List, with occupation-specific thresholds at the 50th percentile
• The new entrant salary requirement should remain at £33,400 (without needing to meet an occupation-specific threshold), with potential extension of the 'new entrant' duration beyond 4 years

The Home Office has not yet confirmed whether it will adopt any of these recommendations.

Graduate Visas

From 1 January 2027, the duration of a graduate visa will reduce from 2 years to 18 months. PhD holders will continue to receive 3-year visas.

Looking further ahead, from 1 August 2028, an international student levy will require providers to pay a flat fee of £925 per international student per year. This is currently under consultation, closing on 18 February 2026.

Temporary Shortage List Review

The current, interim Temporary Shortage List will expire on 31 December 2026. The MAC is conducting a comprehensive review to determine which occupations should remain eligible for sponsorship, focusing on roles crucial to the Industrial Strategy.

In October 2025, the MAC published its Stage 1 Report with a shortlist of occupations. Stage 2 involves a call for evidence on these shortlisted occupations, closing on 2 February 2026. The MAC's final review is expected in July 2026.

For occupations to be placed on the new list, a jobs plan must be in place demonstrating efforts to maximise use of the UK workforce, including a skills strategy and domestic labour strategy.

Note that since 22 July 2025, those sponsored in roles on the Temporary Shortage List cannot bring dependants to the UK.

Earned Settlement: A Fundamental Shift

The Government is proposing a significant overhaul of the settlement system, moving from a 'time-served' model to an 'earned settlement' system which we previously wrote about here. These changes are likely to be retrospective, affecting those already on the path to settlement.

Mandatory Criteria

All applicants will need to meet:

• Suitability: No debt, no criminal convictions
• Mandatory integration: Life in the UK test, English level B2
• Contribution: Annual earnings above £12,570 for a minimum of 3-5 years (under consultation)

Failure to meet these requirements will exclude individuals from settlement.

Extended Residence Periods

The baseline period of residence will increase from 5 years to:

• 10 years for most individuals
• 15 years for those in roles below RQF level 6
• 20 years for refugees

However, the proposed baseline can be reduced or increased based on various factors, with a minimum of 3 years and maximum of 30 years possible. Notably, earned taxable income of £125,140 for 3 years immediately prior to applying brings a 7-year reduction, potentially reducing the baseline to 3 years.

The consultation closes on 12 February 2026, with implementation expected in April 2026. This represents one of the most significant changes to UK immigration law in recent years and warrants careful consideration for long-term workforce planning.

Electronic Travel Authorisation (ETA)

Electronic Travel Authorisation was introduced for non-visa nationals on 2 April 2025. During the current implementation period, non-visa nationals can travel to the UK with a 'pending' application.

From 25 February 2026, the implementation period ends. After this date, non-visa nationals will not be able to enter the UK without an approved ETA. An ETA costs £16 and is valid for 2 years or until a passport expires.

This change affects business visitors and should be communicated to international colleagues and clients planning UK travel.

What This Means for Your Business

The changes outlined above will have significant implications for immigration compliance, workforce planning, and budgeting. The proposed earned settlement changes, in particular, may affect retention strategies for international talent. The expansion of right to work checks will require review of engagement models for contractors and gig-economy workers.

With multiple consultations closing in February 2026, now is the time to consider how these changes may impact your organisation and whether you wish to contribute to the consultation processes.

The Bird & Bird Business Immigration team is closely monitoring these developments and their practical implications for employers. If you would like to discuss how these changes affect your business or need assistance with immigration compliance, please contact our team for tailored advice.

This article is for general information purposes only and does not constitute legal advice.