Graduates Alert: 5 New Visa Rule Changes and Why the Graduate Visa Route Matters

The Graduate Visa Route has allowed international graduates to remain in the UK and gain work experience for two years (three for doctorate holders) post-graduation. However, recent changes to visa rules announced by the Home Secretary, James Cleverly, as part of a "five-point plan" to reduce immigration have raised concerns about its future.

As a company that helps immigrants settle in the UK, Salmo recognises the challenges international graduates face and understands the value they bring to the UK economy. This blog will break down the new rules, how they affect international graduates and their families, and why it's so important to keep the Graduate Visa Route open.

The Five Changes to Visa Rules

Here, let us summarise the five changes to visa rules (Or, "How to Give International Graduates a Headache in Five Easy Steps"):

1. Dependants for Social Care Workers:

• Change: Social care workers can no longer bring dependants (partners and children) on their visas.
• Effective Date: March 11, 2024.

1. Skilled Worker Visa Salary Increase:

• Change: The baseline minimum salary for a Skilled Worker visa increased from £26,200 to £38,700.
• The job-specific 'going rate' minimum salary has also risen.
• Effective Date: April 4, 2024.

1. Immigration Salary List (ISL):

• Change: The new Immigration Salary List replaces the Shortage Occupation List, with a shorter list of jobs that allow reduced salaries.
• Effective Date: April 4, 2024.

1. Spouse/Partner Visa Income Threshold Increase:

• Change: The minimum income required to sponsor a spouse/partner visa rose from £18,600 to £29,000.
• Plans are in place to increase it further to £34,500 in late 2024 and £38,700 by early 2025.
• Effective Date: April 11, 2024.

1. Graduate Visa Review:

• Change: The Graduate Visa, a two-year unsponsored work permit for international graduates of British universities, is under review.
• Review Deadline: May 14, 2024.

Impact on Graduates and Their Families

1. Graduate Visa Review Concerns:

The Graduate Visa Route pumped £70 million into the UK economy in 2022-23. If it's axed or restricted, it'll be like pulling the plug on a money machine.

1. Higher Salary Thresholds:

• Skilled Worker Visa Impact:
• New applicants need to earn at least £38,700, which could price out many roles. Time to brush up those negotiation skills!
• The changes won't apply to those who already hold a Skilled Worker visa before April 4, 2024.
• Spouse/Partner Visa Impact:
• The income threshold for sponsoring a spouse/partner visa has risen significantly, affecting new applicants but not existing visa holders.

1. Social Care Worker Dependants:

New social care workers arriving after March 11, 2024, will no longer be able to bring their dependants, affecting their ability to settle with their families.

Why the Government Introduced These Changes

• High Immigration Levels: Ministers believe net migration (estimated at 745,000 in 2022) is too high. The Graduate Visa Route seems to have them sweating like it's a pop quiz they didn't study for.
• Key Contributors: International students, social care workers, and their families are seen as the main culprits behind these rising migration numbers.
• Previous Student Dependant Restrictions: In May 2023, similar rules prevented student dependants from accompanying international students. Now they're doubling down on this "no dependants allowed" policy like it's the latest trend.

Benefits of the Graduate Visa Route

Let's cut through the bureaucratic babble and get to the heart of the matter: the Graduate Visa Route is a gift that keeps on giving. Here’s the scoop on why this visa route has been a win-win for everyone:

London Economics report states: 

Significant Economic Contributions

• Grads + Tax = Win: In 2022/23, there were roughly 66,410 Graduate Visa Route holders in the UK, including 56,460 international graduates and 9,950 dependants.
• These graduates collectively contributed a whopping £588 million in tax revenues (that's £10,410 per head).

Net Benefit to the Economy

• Public Services Cost: The overall cost of public services for these visa holders was £517 million last year. That's around £9,160 per main visa holder.
• Net Benefit: But here's the kicker: despite what the naysayers claim, these international graduates delivered a total net benefit of £70 million (or £1,240 per grad).

Potential for Even More Benefits

• Visa Explosion: The Graduate Visa Route could grant over 350,000 visas by April 2025, turbocharging economic benefits.  More visas mean more talented individuals enriching the job market.
• Fivefold Economic Boost: Expect a fivefold increase in economic benefits compared to the first full year of the visa route. That's a huge return on investment for the UK's economy!
• Skilled Worker Path: Many graduates use their time on the Graduate Visa to transition smoothly to the Skilled Worker visa route, continuing to contribute to the economy. Without the Graduate Visa, these talented individuals would miss out on opportunities to stay in the UK and bolster the economy.
• - Reality Check: These international grads don't just take up jobs; they fill crucial skills gaps and drive innovation across key sectors. Their contributions make the UK's workforce stronger and more diverse.

Social Contributions

• Skills Gap Fixers: International grads help fill crucial skills gaps in sectors like healthcare, IT, and engineering:
• - Healthcare: International graduates bring specialised medical knowledge and fill in-demand roles, particularly in nursing and allied health professions.
• - IT: They contribute significantly to the tech industry in software development, cybersecurity, and data analysis, where skilled workers are in high demand.
• - Engineering: They provide expertise in civil, electrical, and mechanical engineering, helping drive infrastructure projects forward.
• Diversity & Innovation: Their diverse perspectives spark innovation and make the UK a melting pot of creativity.
• - New Business Ideas: Many international graduates start businesses or work with startups, introducing new products and services.
• - Research and Development: They contribute to academic research, leading to breakthroughs that benefit various industries and society at large.
• - Cross-Cultural Understanding: By bringing different cultural viewpoints, they help UK businesses understand global markets, enhancing international trade.

Conclusion

The Graduate Visa Route has been a win-win for international grads and the UK economy. Tweaking or scrapping it would leave universities, businesses, and the economy worse off. Policymakers should think twice before throwing a wrench into this well-oiled machine. In the meantime, keep calm and carry on (saving for that higher income threshold)!