UK may be planning to hike minimum-wage requirement for foreign workers

In a move aimed at curbing net migration, the UK government may be planning to enforce a rule which would require foreign workers to be paid a salary exceeding £30,000 to come to Britain. The reform plans, currently under consideration, are expected to be officially outlined this week as part of the ongoing efforts to reduce net migration levels, according to a report in The Telegraph.

Currently, workers outside shortage occupations require a minimum salary of £26,200 to take up jobs in the UK—a figure notably below the median wage of £33,000. The proposed adjustment, yet to be finalized, underscores the government's intent to address concerns surrounding immigration levels, particularly in skilled worker categories.

This week's net migration data for the year ending June 2023 is anticipated to reveal levels hovering around 500,000, a figure that remains significantly higher than pre-Brexit levels. The surge, driven by factors such as increasing emigration, the return of overseas students, and a decline in the number of Ukrainian refugees and Hong Kongers, has outpaced the government's 2019 manifesto pledge to reduce overall net migration.


The push for migration reforms has been championed by figures within the government, including Robert Jenrick, the Immigration Minister, who recently expressed concern about the perceived failure to fulfill promises of controlled migration. He emphasized the need for fundamental reform and urged urgent action to establish a migration system that aligns with public expectations.

While the specific details of the proposal are still being considered, it is likely that ministers will agree to raise the salary threshold for skilled workers to approximately the median wage of £33,000. However, uncertainties remain regarding potential restrictions on foreign care workers and migrants bringing their families to the UK.

Notably, Chancellor Rishi Sunak has reportedly resisted further constraints on foreign students, aside from the existing ban on postgraduate students, out of concern for deterring highly-skilled individuals who could contribute to economic growth.

Experts point out that the proposed salary threshold, if implemented, could impact private businesses, with care workers being a focal point of discussion due to their current classification as a shortage occupation. The Oxford University Migration Observatory highlighted that the threshold has not kept pace with inflation and, if adjusted for rising wages, would now stand at around £30,000.

As the government grapples with the complexities of immigration policy reform, the implications of these proposed changes remain a subject of ongoing debate, particularly concerning their potential impact on various sectors and the overall trajectory of net migration in the UK.