As businesses tackle skills shortages and global competition for top talent intensifies, UK immigration policies must do more to actively welcome and retain the world’s best professionals.
Yet the current rhetoric and policy landscape send mixed signals. While the UK government has introduced initiatives to attract skilled workers, entrepreneurs and innovators, high costs and a sometimes unwelcoming tone risk undermining these efforts. For the UK to remain a top destination for global talent, immigration must align more closely with business needs, making the process efficient and genuinely welcoming.
Economic reality and immigration needs
According to the Tech Nation Unlocking the UK growth potential report 2025, one in three UK founders say availability of top talent is their biggest barrier to growth. In the same report, one in two founders say improving immigration and visa processes would best support their talent needs.
The recent strategic partnership between the US and UK to deliver Europe’s largest AI factory is an ambitious move that underlines the country’s commitment to technological innovation and economic growth.
Access to talent will play a vital role in supporting such large-scale initiatives. Immigration significantly contributes to addressing labour shortages, especially in industries where domestic talent is either scarce or lacks the necessary expertise. When domestic workers cannot fill vacancies and training initiatives will not fill gaps quickly enough, skilled foreign workers are needed to bridge these gaps and meet business needs.
In the UK, immigration also serves as a significant direct source of revenue for the state. Migrants staying in the UK for six months or more must pay the Immigration Health Surcharge, a fee of around £1,035 per adult applicant per year, intended as a contribution to the NHS. Employers also pay an additional Immigration Skills Charge (ISC), usually £1000 per year of sponsorship, which is expected to rise by 32% this autumn. According to the Office for National Statistics, in Q1 and Q2 2025 alone, the ISC contributed approximately £251 million in revenue to the state.
Current immigration pathways
To attract top global talent, the government has introduced a range of visa options designed to bring the best and brightest from around the world. The Global Talent visa attracts global leaders in their respective fields. Recognising the strategic economic importance of attracting the world’s best talent, the Prime Minister’s global talent taskforce is reportedly examining proposals to abolish some visa fees for foreign academics and digital experts relocating to the UK. However, this may not help talent pipelines where applicants cannot meet the high bar for the category.
The High Potential Individual visa is aimed at attracting top international talent to the UK, but is limited to graduates from top-ranked university. Other options include the Graduate visa and Youth Mobility Scheme which allow international students and young people to gain valuable UK experience, building a pipeline of future talent, but both have limitations.
Salary threshold concessions exist for young people and recent graduates under the sponsorship routes. Currently, experienced hire applicants for Skilled Worker visa must receive the higher of £41,700 per annum or the going occupational rate. A new entrant discount means those who qualify must instead meet a lower salary requirement: the higher of £33,400 per annum or 70% of the going rate.
Challenges and gaps
Whilst concessions exist for new entrants, Skilled worker salary thresholds remain problematic. After four years, a new entrant must meet the full salary threshold, potentially a 30% pay rise over four years (or two years if time was previously spent on a graduate visa). Salary thresholds are calculated based on the median salary expectation for the role rather than considering the earnings differential of those with five or 20 years of experience, and they do not account for regional salary variation. Concerns exist not only about meeting salaries in the initial application but also about the ability to continue sponsorship at extension.
While work sponsorship follows a clear points-based system, constantly increasing salary thresholds, rising fees and uncertainty over settlement policy reduce the UK’s attractiveness to businesses and individuals looking to establish not only a career, but also a home life.
Looking ahead
The UK’s success in attracting and retaining global talent will depend on its ability to balance immigration policy with a business-friendly approach. The goal should be to make the UK not just a place where the world’s top talent want to come, but where they choose to stay, build their career and contribute to a shared future.
Kinka Tonchev is a senior manager at the global immigration law firm Fragomen.
