Sponsor Licence Application 2025: New UK Hiring Strategy

A Y & J Solicitors | View firm profile

The Data that is Relevant Now

For the entire year leading up to March 2025, approximately 192,000 work visas were issued by the UK Home Office. Compared to the figure for 2024, there is a massive decline of 39% in the work visa number in 2023, but it is still 40% greater compared to the number released at the pre-2023 period. There has been a considerable decline in health and care worker visas, amounting to 23,000. Against this backdrop are clear signs of a slow down from the 2023 surge but there is still an impressive demand for sponsored hiring.

The changes came into effect on July 22, 2025, and they now have some significant impacts on employers who desire to sponsor workers. Here is a quick review of what has changed:

The skill threshold for Skilled Worker route has been raised to RQF Level 6. This shuts the eligibility for lower-level roles.
There are new salary thresholds underlined by the recent figures found among various occupational bands.
Roles beneath RQF Level 6 are now subject to new transitional lists, which are only valid until 31 December 2026.

Such changes will now necessitate businesses to revise their recruitment and HR strategies to be able to continue to hire talent through the Sponsor Licence route.

What Transpired on 22 July 2025 and Why It Matters

The immigration system in the UK has been tumultuous over recent years. Indeed, a clear shift towards a stricter immigration policy which aims at ensuring competitiveness in the UK workforce while giving businesses the necessary tools to flourish was signaled in the White Paper released in mid-2025. Such changes place an even increasing need for companies to acclimatize to a landscape that is increasingly fast-changing.

Here’s a breakdown of the key changes that took effect:

Skill Threshold Raised: The skill level for the Skilled Worker visa route is now set at RQF Level 6, meaning that only roles that require degree-level expertise are eligible unless specified by the immigration lists.
Updated Salary Thresholds: The general salary requirement for most skilled roles is increased to £41,700, with variations depending on industry and qualifications associated with the role.
Temporary Shortage List: New roles that previously fell below RQF Level 6 are temporarily eligible if listed on the Immigration Salary List or the new Temporary Shortage List, but this list expires in 2026.
Adult Social Care Protections: Adult social care roles reserved special rules through to 2028, which helped to give employers continued access to such workers despite the wider restrictions.

These changes happen to align with the broader UK government goals, which include establishing effective immigration management while giving businesses access to the required talent pool. As such, employers will now have to realign their recruitment strategies to remain compliant with the changing requirements.

The Story So Far

Many businesses at this stage of 2024 relied totally on jobs that really fell into RQF Level 3 to 5, which were less of a hassle in terms of sponsorship. But with the new higher threshold of 2025, employers have to reform the design of their job classifications and pay structures reporting. The key question is no longer whether businesses can continue the hiring process through the Sponsor Licence route, but rather how they will navigate their strategic adaptation to these new standards.

This section will deal with the practical steps that businesses should take in order to retain access to foreign talent.

Sponsor Licence Application: Building Your Strategy

The filing of a Sponsor Licence Application must be deemed a part of the overall HR and recruitment strategy. It’s not just a matter of filling out forms-it’s about compliance on all hiring processes with the new norms and ensuring that your roles and pay structures meet the new standards.

1. Understand Role Classification with Accuracy

With RQF Level 6 tightening up, it’s essential to review your roles. This process isn’t just about correctly titling roles but understanding the breadth and scope of complexity within each position.

To begin, here are some steps you should take:

Every Vacancy should Map to the Correct SOC Code: Each role must be linked to the correct Standard Occupational Classification (SOC) code as captured in Appendix Skilled Worker. Therefore, every role has to meet the skill criteria.
Check RQF Level: If the role doesn’t reach the new RQF Level 6 threshold, evaluate the redesign potential. For example, reviewing scope increases and levels of decision making or even adding further duties to meet the role requirements.
Map Your Roles: Maintain a good record of how you have classified each role with job descriptions, reasoning for your judgments, and criteria for skill requirements. This would help should a Home Office audit come along.

2. Benchmark Salaries Against New Thresholds

New salary thresholds and ensuring sponsor eligibility for your roles. This is how to go about it:

Salary Bands Review: That’s the most critical part: for each role, you have to match the salary to the new required levels. For most positions, the general threshold is now £41,700, but it may be lower for certain sectors (e.g., STEM or PhD-related roles).
Full-Time Equivalence Considered: Salaries need to reflect the full-time equivalent rate because in measuring salaries, you are indicating that the salary can be for a full-time employee. If the employee works part-time or irregular hours, you may need to adjust the salary accordingly to meet the threshold.
Invisible Track of Temporary Shortage Roles: If your role falls under the Temporary Shortage List, ensure you are aware of the deadlines for these lists, as they will no longer be available after 2026. This will help you plan for pay adjustments or role redesigns.

3. Tighten HR Controls and Documentation to Meet Compliance

This is quite key, given the strict enforcement, for instance on the following:

Right to Work Checks: Ensure that your right to work checks are updated and in line with the new regulations. This is the critical evidence that you are following all immigration guidelines.
Document Changes to Roles: Changes to a role (for example, promotion or the introduction of a new job description) will all need to be documented. This will ensure compliance with audits and inspections.
Standardise Recruitment Records: Standardization of the records that you keep with recruitment postings, interview proceedings, and salary benchmarks. Having all of these in place will speak to compliance with Home Office practice when your Sponsor Licence Application is submitted.

4.  Develop a Job Design Playbook

A playbook can further expedite compliance standards. It will allow for quick assessments of whether roles in question meet the new requirements, thus alleviating some of the confusion for hiring managers. Here are some things to consider for inclusion in the playbook:

Eligible SOC Codes: List the SOC codes for roles for which you act as a sponsor and verify that they meet the required RQF Level 6 criteria.
Job Description Templates: Have standardised job descriptions that are in line with the new skill and pay thresholds.
Decision Trees: Create a simple decision tree to provide hiring managers with a guide to rapidly accessing whether a role is eligible for sponsorship.

5. Monitor List Removals and Compliance Cycles

As the Temporary Shortage List and other role lists are phased out over time, it’s important to track these changes carefully. Maintain a calendar with:

SOC Codes and List Sources: Track which roles are eligible under the Immigration Salary List or Temporary Shortage List.
Removals and Sunset Dates: Keep track of when these roles will no longer be eligible and plan accordingly, either by raising salaries, redesigning roles, or shifting to domestic hiring.

Maintaining Compliance and Strategising in the Long Run

Another ongoing task is maintaining your Sponsor Licence. Though your application may be approved, you need to continue monitoring compliance and synergy of your recruitment processes and Home Office rules.

Reviewing Every Quarter: Scheduling reviews every three months in the initial year, lest you stray off course.
Role Changes: Keep a record of any role reclassification, salary changes, or employee movement in line with your obligations.

Making the New Rules Work for Your Business

Though the reforms to the UK immigration system could appear frightening, the right planning and execution will allow for continued accessibility to international talent. Treat your Sponsor Licence Application as the last piece in a strategic hiring plan and not an end for much confusion in itself.

In order to survive the changes, either:

Confirm the workforce plan with respect to the next 12-18 months.
Map roles to Appendix Skilled Worker and ensure they meet the new RQF Level 6 criteria.
Benchmark salaries to the new thresholds; adjust pay wherever needed.
Check Immigration Salary List and Temporary Shortage Lists for all relevant roles.
Make sure that all your HR controls and processes are aligned to the updated guidance.

When to File the Sponsor Licence Application

Since the reset may feel complex, A Y & J Solicitors will accompany you in the Sponsor Application from the initiation to the finish. Our specialty is sponsored hiring, and we have helped in more than five thousand successful immigration cases. We align mapping for the role together with Appendix Skilled Worker with testing of job design against RQF Level 6 criteria and salary benchmarking against the new salary thresholds, thereby create the evidential groundwork that you will require during the compliance visit. For custom assistance, contact us at +44 20 7404 7933 or email at [email protected]. We do the lawfully hiring with credible confidence.

Final Thoughts

The Sponsor Licence 2025 changes raise the bar for employers, but the right strategy will keep your business strong in hiring the best global talent. Plan, stay compliant, and ensure your roles meet the new requirements to keep access to skilled workers from around the globe.

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