Labour plans cap on skilled foreign worker visas

Labour plans cap on skilled foreign worker visas
Credit: Jacob King/PA

UK (Parliament Politics Magazine) – Labour plans to cap skilled foreign visas, requiring British firms to train local staff or face restrictions on hiring from abroad.

As reported by The Telegraph, Labour proposes tightening skilled foreign visa routes and is urging companies to invest more in training local staff.

Home Secretary Yvette Cooper has commissioned a review into plans for a cap on skilled migrant workers. The proposed cap could restrict monthly or annual recruitment in officially recognised shortage occupations.

Under new proposals, firms that don’t train UK workers may lose the right to hire from abroad. This aims to cut migration by over 60,000 a year.

Who proposed the training-first approach for UK firms?

Prof Brian Bell, chair of the Migration Advisory Committee, has confirmed the proposals. 

Ms Cooper has appointed Prof Brian Bell to the Labour Market Evidence Group, which has been tasked with helping reduce the UK’s reliance on cheaper migrant labour and encouraging firms to invest in local workforce training.

Mr Bell said,

“There is potentially an argument that says not only should you have this new temporary shortage list, but actually you might want to say there’s an absolute cap on the numbers that can come on that route. That’s feasible.”

He stated,

“The Home Secretary is certainly interested in the idea of thinking about how we make sure that there’s a sort of emergency stop. There’s a risk that you put 50 occupations [on the temporary shortage list] and they suddenly go wild in recruitment, although I don’t think this will happen.”

Prof Bell stated that industries aiming to hire overseas workers must first present “sensible” and “realistic” plans to train British staff before being granted permission to recruit skilled foreign labour.

He said businesses that fail to deliver pledged training schemes would be barred from hiring skilled migrant workers.

Mr Bell stated,

“Where we’ll be really unsympathetic is if a sector has said ‘we’re going to train 10,000 bricklayers’, and they train 100, then we’re going to say ‘well, tough, you’re on your own now.’”

He said,

“You’re not getting access to migrant workers because you’ve deliberately decided not to bother training British workers. That’s your choice but you’re going to live with the consequences,”

adding,

“Companies are going to have to have clear plans in place that are deliverable and unless that happens, the immigration route will be closed down. It’s a carrot and stick. If you’re doing the right stuff and it’s just going to take time to train British staff, the immigration system can help you, and it can smooth that transition.”

Prof Bell stated,

“But there’s a stick there which says if you don’t do the work you need to do on skills and training, that it will get closed down.”

According to Prof Bell, the Government will introduce minimum salary levels in sectors with worker shortages to reduce reliance on low-paid migrant labour.

He said new pay thresholds might exceed current market levels, stating,

“We really want to make sure you’re incentivised to train domestically, and if you’re saying that the problem is that you can’t get these workers and they’re crucial to what you’re doing well, you might pay a bit more for that.”

Prof Bell warned that the 120 occupations excluded from accessing foreign labour must “start recruiting domestically”, invest in training UK staff, and explore automation.

He said,

“There’s no access to the immigration system for those 120. They have no chances of getting on the list. The Home Secretary is not going to backtrack.”

According to him, the LMEG would spend the next year reviewing which roles should qualify for skilled migration. He said only those jobs aligned with Labour’s industrial strategy, with proven shortages and solid British training plans, would be considered.

The interim shortage list, which includes roles such as HR professionals, may be reduced, Professor Bell said. However, skilled migrants admitted under the previous points-based system can still extend their stay.

The Home Office has yet to confirm whether these workers will qualify for indefinite leave to remain after five or 10 years under its new immigration plans.

How did Labour plan to reshape skilled migration?

Labour’s proposed immigration limit is being positioned as a direct response to similar proposals from both Reform UK and the Conservative Party.

According to Labour insiders, Ms Cooper intends to tighten immigration rules by allowing only graduate-level jobs to qualify for overseas recruitment, raising the threshold set at A-level under former Prime Minister Boris Johnson.

Officials say Mr Johnson’s liberal policies, which included plans to bring in 600,000 overseas students, contributed to net migration reaching 906,000 by 2023. However, Rishi Sunak’s tougher rules have since brought that figure down to 431,000.

Which jobs are safe from Labour’s migration plan?

Around 60 non-graduate roles may be exempt, provided employers commit to training British staff.

The 60 jobs include welders, electricians, plumbers, construction workers, car mechanics, boat builders, ship builders, painters, decorators, and data analysts.

Since 2021, the UK has issued the most skilled worker visas to India (133,801), followed by Pakistan (44,208) and the United States (22,995). Other top countries include the Philippines, South Africa, Turkey, France, Bangladesh, Nigeria, and China.

UK skilled worker visa rules

  • Only graduate-level jobs (RQF 6) now qualify. Around 180 lower-skill jobs will be removed unless on special lists.
  • Minimum salary is now £41,700/year (£17.13/hr). Lower rates for PhD holders and shortage roles.
  • Mid-skill job workers (RQF 3–5) can’t bring dependants, unless already in the UK or higher roles.
  • Workers in mid-skill jobs before 22 July 2025 can keep using old rules until 2028/2030.
  • Settlement may require 10 years instead of 5, but still under review.