Deconstructing Skilled Worker Visa changes: What they mean for the hospitality sector

Deconstructing Skilled Worker Visa changes: What they mean for the hospitality sector

Significant restrictions to the Skilled Worker visa route were implemented in July 2025, bringing major consequences to the hospitality sector, one of the largest sectors in the UK for employing sponsored Skilled Workers.

Explore what has changed, who is affected, and how the hospitality sector can plan for the future.

 

Policy context

In May 2025, the Government published its white paper: “Restoring Control over the Immigration System”. The focus of the Government’s immigration policywas emphatically set out in the title to chapter one: “Net Migration Must Come Down”

The white paper set out they would primarily seek to achieve this by limiting Skilled Worker occupations eligible for sponsorship to those considered to require a skill level requiring a degree or above.

 

July 2025 change in law for Skilled Workers

From 22 July this year, over 180 occupations that were previously eligible for sponsorship are no longer eligible to new Skilled Workers. All chef and bar, restaurant and hotel manager roles are no longer available for sponsorship.

 

What about Skilled Workers in hospitality before July 2025?

Skilled Workers issued a Certificate of Sponsorship (CoS) before 22/07/25 and granted a visa in an occupation removed to new Skilled Workers from 22/07/25 , are protected. They continue to be subject to the salary thresholds that applied to them when initially sponsored and when they extend their visas or settle, they will be subject to the following salary thresholds:

Existing Skilled Worker initially assigned CoS from 04 April 2024 until 21 July 2025 applying to extend or settle:

Salary must meet or exceed all of:

  • £41,700 (general threshold)
  • the full going rate for the occupation code
  • £17.13 per hour

(applies to workers who are currently subject to the £38,700 general threshold)

Existing Skilled Worker initially assigned CoS before 04 April 2024 applying to extend or settle:

Salary must meet or exceed all of:

  • £31,300 (general threshold)
  • the full going rate for the occupation code
  • £12.82 per hour

(applies to workers who currently subject to the £29,000 general threshold)

For chef and manager roles, the general threshold rates have always applied.

 

What is meant by a new Skilled Worker?

If not a Skilled Worker before 22 July 2025, but for example a student visa holder or graduate visa holder and wanting to “switch” from one of these visa routes to the Skilled Worker route, this would be a new Skilled Worker and cannot be offered sponsorship in a hospitality role from 22 July.

However, a pre-22 July Skilled Worker who wishes to be sponsored by a new sponsor can be sponsored via a “change of employment” application. Although they are new to the sponsor they wish to change to, they are not new to the Skilled Worker route. The salary threshold that applies to them will be based on when they were issued their first CoS by their first sponsor and not based on when they are applying to change employers.

 

Dependants

Skilled Workers in hospitality roles can still bring dependant family members. Dependant partners are granted for the same visa period as the Skilled Worker and can establish a right to work in any hospitality role. They do not need to be sponsored and are not subject to any skilled worker requirements.

 

What about the Temporary Shortage List?

On the Temporary Shortage List the Government has retained some below degree-level occupations still eligible for sponsorship that they consider crucial to their aims of building critical infrastructure and serving their Industrial Strategy. The hospitality sector does not feature as a key growth sector in the Industrial Strategy and the key hospitality occupations (chefs and managers) are not listed as eligible for sponsorship.

 

Alternative visa categories for recruitment

While the Skilled Worker route has become more restrictive, there are alternative visa categories that employers can still rely upon to recruit staff. Two main categories:

  • Student visa holders can mostly work a maximum 20 hours during term time and full-time hours outside term-time (including Christmas, Easter and summer when the sector tends to be especially busy)
  • Graduate visa holders currently have two-year visas allowing them to work in any role, but this will reduce to 18 months for new applicants from 01 January 2027.

 

EU youth migration deal?

Chancellor Rachel Reeves confirmed to the Times in late September that she is seeking an “ambitious” migration deal with the EU that would allow young Europeans to live and work in the UK. It is thought this would be for up to two years. The detail on this and its implementation is unknown, but it was reported that the number of individuals could be as high as 50,000.

Without question the changes are extremely challenging for the hospitality sector, but it is important to be aware of the potential recruitment pool that is still available, and to focus recruitment strategies accordingly.

 

Sponsor Licence compliance and Right to Work checks

It is critical for businesses to understand the restrictive measures outlined above are only part of the policy picture. The measures to reduce net migration are matched by measures to increase immigration control and specifically in relation to Sponsor Licence and Right to Work compliance. Compliance action towards sponsor licence holders has increased exponentially with revocations of licences in 2023 (297), 2024 (937), 2025 (1,948). Right to Work enforcement is also on the rise.

All businesses must ensure their systems are meeting the compliance requirements that apply to them.

 

How we can help

If you’re facing challenges with visas, sponsor licences, or Right to Work compliance, contact our immigration specialist Mark.Templeton@andersonstrathern.co.uk.

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