Home Office visa changes criticised

The National Audit Office (NAO) has issued a report criticising the Home Office for repeatedly changing the Skilled Worker visa route without fully assessing the impacts. The report highlights that the department lacks a comprehensive understanding of how the visa route operates, particularly regarding what happens to visa holders when their period expires.

Gareth Davies (pictured), head of the NAO, emphasises that the Home Office must make better use of data to understand the impact of visa route changes, improve applicant experiences, and prevent the exploitation of visa holders. Without this understanding, he warns, the department cannot ensure value for money in managing the immigration system.

Introduced in 2020 to attract skilled workers to the UK, the Skilled Worker visa route has undergone significant changes. The NAO report states that these changes "have not always been based on a full assessment of potential impacts". One major shift was in 2022, when entry requirements were eased to address staffing shortages in the social care sector. However, in 2024, the department reversed course by restricting rules, including a ban on dependants, as part of the government's drive to reduce net migration.

Madni Chaudhary, Senior Associate in the immigration team at Michelmores, comments that the Home Office has made frequent alterations to the Skilled Worker visa route without adequate assessment of their effects. He notes that major decisions, such as bringing care workers into the visa scope in 2022 and then tightening rules in 2024, were made hastily and without sufficient consultation. This, he argues, has caused disruptions and negatively impacted businesses. While immigration policy must remain flexible, he asserts that changes should be evidence-based to maintain public confidence and uphold the visa route’s intended economic benefits.

Despite the criticism, Chaudhary acknowledges that the Skilled Worker visa category and the broader visa system provide value for money. According to the NAO report, the visa route generates substantial financial returns that surpass its administrative costs. In the 2023/24 financial year, the Home Office collected approximately £2.6 billion in visa fees, with around £438 million from Skilled Worker visa fees alone. These revenues significantly exceed the Home Office’s £109 million processing costs for Skilled Worker visas. Furthermore, the Immigration Health Surcharge raised £1.8 billion, and the Immigration Skills Charge added £700 million. Migrants and their employers also contribute through taxes such as National Insurance, PAYE, and VAT. An analysis by the Migration Advisory Committee confirms that migrants entering the UK under this visa route make a positive net contribution to public finances.

The Skilled Worker visa route is a flexible mechanism which helped recruit more care workers from overseas after a skills shortage following the pandemic. However, the Home Office has made changes to the route without a detailed understanding of potential impacts across different industries and regions. The NAO recommends greater collaboration between the Home Office and other departments to assess immigration’s role in addressing labour market shortages.

Ahead of the government’s upcoming Immigration White Paper, the NAO has examined the Home Office’s management of the Skilled Worker visa route. The report finds that while the Home Office reviewed the use of the route, it did not produce an impact assessment before changing entry requirements for care workers in 2022, nor has it evaluated the route since this expansion.

Changes made in Spring 2024 to reduce net migration were implemented with limited consultation or full analysis of potential consequences for different industries. The number of Skilled Worker visas issued has fallen in 2024, with 252,700 fewer compared with 2023, representing a 50% reduction. The report highlights the impact on sectors such as social care, construction, and architecture, where businesses have struggled to adapt to sudden changes in immigration policy.

The Home Office has commissioned an evaluation of the route, with a report expected in 2025. The NAO encourages publication within the next three months to better understand the consequences of changes, improve customer experience, and prevent exploitation of visa holders. The extent of exploitation remains unclear, but the NAO found evidence of labour market abuses in the care sector, including underpayment of wages and excessive working hours.

The Home Office has made efforts to strengthen compliance measures, such as digital audits and risk identification hubs. Approval rates for Skilled Worker visas have fallen from 99% in 2021 to 79% in 2024, while sponsor licence refusal rates have risen from 7% to 13%.

The NAO has made several recommendations to improve the Skilled Worker visa system, including publishing its evaluation of the route within three months, assessing what happens to visa holders at the end of their stay, collaborating with key labour market advisory bodies, and strengthening compliance measures to prevent worker exploitation.