Immigration Round-up: February 2026

In this edition, you can find:

• UK Immigration updates  
• Alerts, webinars & resources
• Round-up live

Section 1: UK Immigration updates

1) Expansion of illegal working regime

The Border Security, Asylum and Immigration Act 2025 (the Act) received Royal Assent on 2 December 2025, introducing a significant expansion of the illegal working regime.

The Act expands the existing right to work checks regime to include casual and temporary workers and contractors, including individuals engaged through online matching services and gig economy platforms.

Further detail will follow when the Home Office publishes updated Codes of Practice and statutory guidance. Employers should expect more prescriptive rules around document retention, supply‑chain due diligence and the use of digital identity verification. Implementation is expected during 2026.

2) Immigration White Paper: Ongoing Reform into 2026

Following publication of the Immigration White Paper in May 2025, many measures continue to progress through implementation and consultation phases. For an overview of reforms that were implemented during 2025 and reforms anticipated during 2026, see our briefing, Navigating the Immigration White Paper: 2025 Review and What’s Ahead for 2026.

Key elements that are currently progressing are set out below.3) English Language Requirements

The English language requirement increased from B1 to B2 on 8 January 2026 for the Skilled Worker, High Potential Individual and Scale-up routes for initial applications. Individuals applying for extensions within the route are not impacted by the change.

On 8 January 2026 UKVI published Guidance on the English language requirement levels for immigration applications.

4) Earned Settlement Reform – Consultation Period

In December 2025, the Government opened a major consultation on proposals to replace the current time‑based Indefinite Leave to Remain (ILR) model with a new “earned settlement” framework. This is a substantial reform to the UK immigration system, aiming to link settlement more directly to a migrant’s contribution, compliance, and integration into UK society.

Under the existing system, most work‑related migrants become eligible for ILR after five continuous years of residence, provided they meet suitability and salary requirements. The new proposals would move away from this largely automatic, time‑based pathway. Instead, migrants would need to demonstrate a combination of behavioural, economic and integration‑based factors to “earn” settlement. This may include evidence of:

• strong and continuous compliance with immigration conditions

• a stable employment and tax record

• sufficient English language capability

• integration indicators such as community participation or training

• good character, with tighter rules on criminality and public‑order issues

If implemented, the earned settlement model could significantly reshape workforce planning for employers who rely on long‑term sponsored talent. Migrants who previously could assume ILR eligibility after five years may instead need to meet performance, integration and behavioural benchmarks. Employers should therefore consider how these reforms may affect retention strategies, sponsorship costs, and long‑term talent mobility.

The consultation is open until 12 February 2026, after which the Government is expected to refine the proposals with a view to implementation from April 2026. The consultation can be found here – Open consultation: Earned settlement.

5) Temporary Shortage List (TSL) - Stage 2 Review

The TSL replaces the previous Immigration Salary List (ISL) and is part of a broader strategy to restrict immigration to high-skilled roles at Regulated Qualifications Framework (RQF) Level 6 and above, while also allowing time-limited access for certain RQF Level 3–5 occupations. These are typically mid-skilled roles such as technicians, tradespeople, and creative professionals.

On 9 October 2025 the MAC published its Stage 1 report on the TSL, in which it identified the occupations eligible for inclusion on the TSL because they are potentially crucial to the delivery of the government’s Industrial Strategy or building critical infrastructure. On 17 October 2025, the MAC launched Stage 2, by publishing a Call for Evidence on the occupations that passed stage 1, in order to identify which of these occupations it will recommend adding to the TSL. Stage 2 will continue until July 2026, with the Call for Evidence closing on 2 February 2026.

Interim arrangements are in place until the TSL is finalised, consisting of an expanded ISL and an interim TSL, both of which provide time-limited access to the immigration system for RQF.

Level 3–5 occupations identified as being in shortage or crucial to the UK’s Industrial Strategy. Both interim lists are set to expire on 31 December 202

In its Stage 1 report, the MAC laid out the design principles for the TSL and identified 82 occupations that will proceed to Stage 2 for further assessment. The occupations were selected based on their potential importance to infrastructure delivery, with a particular focus on roles involved in building rather than operating infrastructure. For example, engineers and construction workers involved in building a nuclear power station may be in scope, while those operating it would not

The MAC’s recommendations include:

• a default duration for an occupation to be added to the TSL of three years

• visa durations of 3–5 years, with no renewals beyond five years (if the government decides that the TSL should not be a route to settlement)

• a minimum English language requirement of B1 level

• support for in-country switching to higher-skilled roles (RQF 6+), encouraging career progression

The Call for Evidence closes on 2 February 2026 and responses will inform the final recommendations due in July 2026.

6) Recommended changes to salary requirements

On 17 December 2025 the MAC published its review of the salary requirements for work visas. The review outlines several key recommendations intended to rebalance salary thresholds, improve fiscal outcomes, reduce exploitation risks, and ensure the immigration system better supports the UK labour market. The recommendations include:

• maintaining the general Skilled Worker (SW) threshold at £41,700
• reversing the previous government's change that raised occupation‑specific thresholds to the median (50th percentile) in April 2024. The MAC recommends returning these to the 25th percentile
• introducing a single new entrant threshold of £33,400, enabling typical graduate recruitment via sponsorship
• abolishing the PhD discount, as evidence does not show PhD‑qualified workers earn less than average

7) Visitor and Travel Requirements

The UK will fully enforce its Electronic Travel Authorisation (ETA) system from 25 February 2026, introducing a “no permission, no travel” regime. This will be required for visitors from 85 visa‑free countries, at a cost of £16, and valid for 2 years or until passport expiry.

8) Immigration Costs – Significant Increases Now in Force

Two major cost increases took effect in November and December 2025:

Immigration Skills Charge (ISC) – Increased 32% from 16 December 2025

• increased to £480 from £364 (initial charge) and £240 from £182 (subsequent periods) for small companies and charities
• increased to £1,320 from £1000 (initial charge) and £660 from £500 (subsequent periods) for large companies

This is one of the largest single increases since the ISC’s introduction, and will have a marked effect on workforce planning, especially for high‑volume users of sponsorship.

Priority Service Fee Increases – From 11 November 2025

• Sponsor Management System priority service: £350 (up from £200)
• Sponsor licence application priority service: £750 (up from £500)

9) High Potential Individual Route – Expansion of Eligible Universities

From November 2025, the list of eligible universities doubled from 50 to 100, broadening access. However, this expansion is accompanied by:

• new restrictions to ensure the route does not become a de facto work route without sponsorship
• stricter post‑grant monitoring

10) Salary Deductions and Skilled Worker Eligibility

The Home Office has issued helpful guidance on how employee share schemes interact with salary assessments for Skilled Worker visa holders. The underlying concern centres on arrangements where sponsored workers are treated differently from other employees regarding pay deductions—particularly so-called "self-sponsorship" structures that require applicants to invest in a business as a condition of obtaining sponsorship.

Importantly, however, legitimate company-wide share schemes such as Share Incentive Plans or Save As You Earn (SAYE) do not raise the same concerns. The Home Office has confirmed that where a share scheme is open to all employees on the same terms and participation is entirely voluntary—meaning the worker has a genuine choice to take up an additional benefit—these arrangements are treated as salary sacrifice for Skilled Worker salary assessment purposes. Deductions under such schemes will not reduce a sponsored worker's eligible salary when calculating whether they meet the minimum salary threshold.

In a further welcome clarification, the Home Office has confirmed that salary deductions made under qualifying share schemes do not need to be reported on the Sponsorship Management System.

11) Dual-national British citizens

British citizens should enter the UK using a valid British passport or a certificate of entitlement; their British citizenship cannot be linked to a non‑UK passport and expired UK passports or naturalisation/registration certificates are not valid for travel. Dual nationals who present a foreign passport to the carrier must use that same passport to enter and, if non‑visa nationals, will need an ETA (or a visa if required) and permission to travel—transitional leniency ends on 24 February 2026, with full enforcement from 25 February 2026. From 26 February 2026, certificates of entitlement move to a digital format: holders must create a UKVI account and keep passport details up to date; valid physical certificates on that date will be digitised automatically, but certificates expiring before then require a new application. Irish citizens remain exempt and should use a valid Irish passport. In urgent cases, British nationals abroad may be able to obtain an emergency travel document.

We hope you find these updates useful. 

Section 2: Alerts, Webinars & Resources

Immigration UK – Right to work and compliance masterclass
April 28, 2026 9.30am - 12.30pm (GMT) - Virtual

This half-day masterclass is designed to provide an overview of the key compliance touch points you should be considering as an employer and sponsor licence holder in the UK.

See further details
 
Immigration UK Business – sponsor licencing course
May 12, 2026 9.30am - 11.30am (GMT) - Virtual

Our team will advise you of the strategic and practical issues that HR professionals need to consider when sponsoring employees within the new UK immigration system.

See further details 

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Section 3: Round-up Live

Our next Round-up Live will be held on Thursday  26 February  11am-12pm (UK time). This session gives you an opportunity to discuss the recent changes within the immigration landscape and to raise any questions about the issues that are currently affecting your business.

The login details to the Teams meeting room can be found below:

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