Taylor Hampton Comments on the New Entrants Visa

In April 2023, the UK government introduced significant increases to the minimum salary thresholds for skilled worker and global business mobility visas. These changes have left employers and potential employees navigating a more complex hiring process, especially when it comes to new hires versus extending visas for existing roles. Despite this, many international graduates remain unaware of the salary discounts available to them under the “new entrants” category.

The Impact on International Graduates

International students and recent graduates, once attracted to the UK job market to offset their education costs, now face tougher prospects due to the salary hikes. Many regret choosing the UK, frustrated by the increased difficulty in finding jobs. As the home secretary, Yvette Cooper, has made it clear these salary hikes will not be reversed, it is crucial for international graduates to understand the salary discounts available for them.

What is the New Entrants Category?

The new entrants category, detailed in Appendix Skilled Worker of the immigration rules, offers discounted salary requirements for those at the beginning of their careers. This includes a 20% reduction in the general salary threshold to £30,960 and a 30% discount on the “going rate” for the relevant profession, keeping it comparable to pre-April levels.

Who Can Benefit from the New Entrants Visa?

This scheme primarily targets young applicants under the age of 26 and those switching from student or graduate visas to skilled worker visas. However, the new entrants visa is not just limited to young professionals. The category also benefits those pursuing professional qualifications in UK-regulated fields, postdoctoral researchers, higher education teaching staff, and individuals working towards full registration with a professional body. These groups may include people of any age, including those switching careers later in life.

International students holding a bachelor’s degree or higher, including PGCE or Professional Graduate Diploma in Education, and those on the graduate route, can also benefit. A key detail often overlooked is that applicants can still qualify for the discounted salary rates if their student or graduate visa expired less than two years before the date of application, if they haven’t returned to the UK as a visitor.

Does It Work?

While the new entrants category offers some relief, it has its limitations. One major challenge is that the discount only lasts for four years. After this period, employers are required to pay their employees above the median salary for their profession, which could lead to complications. Employers may find themselves paying junior staff more than their peers, raising the risk of wage inflation or even claims of discrimination.

Additionally, employers are becoming cautious about hiring new entrants in the first place, knowing they will face higher salary requirements down the line. For applicants, this means they have limited time to progress within their field and earn a salary that meets the higher post-new entrant threshold, which could jeopardize their chances of continuing in their role long enough to gain settlement status.

A Call for Flexibility

The new salary thresholds have shifted the focus toward more senior hires, which could negatively impact the UK’s ability to fill entry-level positions, particularly in industries facing skills shortages. Extending the time frame for new entrants or offering more flexible salary requirements could make the scheme more attractive for both employers and graduates.

With the Home Secretary maintaining the current structure of the graduate visa, based on recommendations from the Migration Advisory Committee, the outlook for international graduates remains challenging. Without changes to make the new entrant rules more adaptable, the UK may see a decline in international student enrolment—a potential blow to the university sector and the broader economy.

For more information

 For more information on UK immigration services contact our head of immigration: Leena Chouhan on 02074275972