UK immigration from 1 January 2021
In October 2020, the Statement of Changes to the Immigration Rules were laid before parliament and the new system will come into force for applications submitted after 9am on 1 December 2020.
This note provides a summary of the changes.
- Irish nationals will continue to be able to live, work and study in the UK without obtaining immigration permission and they will only need to show their passports as proof of these rights.
- All non-British/Irish nationals will, from 1 January 2021, require a valid immigration status to live, work and study in the UK. While non-EEA nationals will continue to receive vignettes in their passports and Biometric Residence Permits, in most cases EEA nationals will not receive a physical document evidencing their status. Instead, it will be linked to their passport number and will be able to be verified using an online system.
- EEA nationals who are living in the UK before 31 December 2020 can apply under the EU Settlement Scheme for a valid immigration status, which will allow them to continue to live, work and study in the UK without restriction.
- All new arrivals to the UK from 1 January 2021 will need a visa before they travel to the UK if they intend to live, work or study in the UK.
- The Government intends to keep the application and other additional fees it charges for immigration applications at the same level as they are currently and, in some cases, increase them. This will have a large impact on EEA nationals who currently do not have to pay any fees to exercise EU free movement rights or apply under the EU Settlement Scheme.
- Right to work checks: employers will continue to be able to confirm an EEA national’s right to work using only their passport or national ID card until 30 June 2021. From 1 July 2021, employers must see proof of immigration status which will be either from the EU Settlement Scheme or from the new immigration system.
- Many of the immigration routes will be renamed and will be more descriptive. In this note, we will continue to refer to routes by their current names for ease of reference.
Immigration categories to be renamed
Most of the immigration categories will be renamed and we include a table of the most common categories below.
|Current Immigration Category||Immigration Category from 1 January 2021|
|Tier 1 (Entrepreneur)*||Start-up/Innovator*|
|Tier 1 (Exceptional Talent)*||Global Talent*|
|Tier 1 (Post-Study Work)**||Graduate**|
|Tier 2 (General)||Skilled Worker|
|Tier 2 (Intra-Company Transfer)||Intra-Company Transfer|
|Tier 4 (General)||Student|
|Tier 5 (Youth Mobility)||Youth Mobility Scheme|
* renamed before January 2021
** Tier 1 (Post-Study Worker) was abolished in 2012 and is being reintroduced in 2021 as the Graduate visa
Visiting the UK
There are some minor changes to the visitor rules.
Visitors are able to come to the UK for up to 180 days at any one time to undertake a wide range of permitted activities. For example, visitors can attend conferences and meetings, attend interviews, gather information for their work overseas, give and receive training in most circumstances.
Some nationals, known as “visa nationals”, require visas before they travel to the UK, for example those from China, India or South Africa. Applications for visitor visas are made at a local visa application centre and a vignette is placed into the passport.
From 1 January 2021, EEA nationals will be classified as non-visa nationals, joining other countries such as the US, Canada and Australia. They will therefore not be required to obtain a visa before they travel to the UK to visit. Instead, they will simply be able to travel to the UK and apply on arrival for entry as a visitor, either by presenting their passports to an Immigration Officer or by going through the e-gates at the border.
Visitors will now be able to undertake a course of study with an accredited institution for up to 6 months. Recreational courses for leisure can be undertaken for up to 30 days.
It is important to note that visitors are not permitted to undertake any work or long-term study in the UK, beyond certain permitted activities, while holding this status. Visitors are also prohibited from using the visitor route to reside in the UK long term.
Working in the UK
Skilled migrant workers may be sponsored by organisations who hold a sponsor licence issued by the UK Home Office. Those migrant workers undertaking permanent employment will usually be sponsored under Tier 2 (General), while those who are employed overseas and being sent to the UK on a temporary intra-group assignment are usually sponsored under Tier 2 (Intra-Company Transfer).
From 1 January 2021, employers will need to sponsor EEA nationals who do not already have an immigration status which entitles them to undertake the role on offer. If an employer does not have a sponsor licence and regularly hires EEA nationals, they are strongly advised to apply for one now.
We have prepared detailed advice about the current Tier 2 sponsor licence regime.
The Government intends to make a substantial number of changes to this route, which are summarised below.
Tier 2 (General) Changes
|Current rules||Post-1 January 2021 rules|
|The proposed job role must be at the highly skilled level of RQF 6 (degree level and above) and be on the Standard Occupational Code (SOC) job list.||The proposed job role must be at the medium skilled level of RQF 3 (school leaver and above) and be on the Standard Occupational Code (SOC) job list.|
|“Experienced workers” must earn at
least £30,000 or the SOC code salary minimum, whichever is higher.
|Experienced workers” must earn at least £25,600 or the SOC code minimum salary, whichever is higher.
Lower salary thresholds are available for those roles which are at PhD Level or are on the Shortage Occupation List.
|“New entrants” must earn at least £20,800 or the
“new entrant” SOC code salary minimum, whichever is the higher.
|“New entrants’” salary will be set 30 per cent lower than the “experienced workers” SOC code minimum salary.|
|The sponsor must undertake a Resident Labour Market Test before assigning a Certificate of Sponsorship if the role is not on the Shortage Occupation list or pays under £159,600.||The Resident Labour Market Test is abolished.|
|An annual quota of 20,700 applies to
Tier 2 (General) applicants from
overseas unless the role is on the shortage occupation list or pays over £159,600.
|The annual quota is suspended.|
|Applicants are subject to a 12-month cooling-off period whereby they cannot apply for a new Tier 2 visa within 12 months of their previous Tier 2 visa expiring unless they earn over £159,60.||
The cooling-off period is abolished.
|Tier 2 (General) visa holders are only permitted to remain in the UK for up to six years.||
The six-year limit has been abolished.
|Tier 2 (General) visa holders must earn a specified minimum salary level to qualify for Indefinite Leave to Remain.||
The minimum salary level for Indefinite Leave to Remain applications is abolished.
What is not changing?
- Applicants must demonstrate an ability to speak English at B1 level (lower intermediate).
- There will be no regional salary thresholds or different arrangements for different parts of the UK.
Tier 2 (Intra-Company Transfer) (ICT) changes
|Current rules||Post-1 January 2021 rules|
|Applicants are subject to a “cooling-off” period whereby Tier 2 (ICT) visa holders cannot apply for another Tier 2 (ICT) for at least 12 months from the date they leave the UK. Those earning over £120,000 are exempt from the cooling-off period.||The cooling-off period will be simplified so that Tier 2 (ICT) migrants must not hold entry clearance or leave to enter or remain as an intra-company transferee for more than five years in any six-year period. There will continue to be an exemption for high earners but the threshold has been reduced to £73,900.|
|Tier 2 (ICT) migrants are not permitted
to switch into Tier 2 (General) from
within the UK.
|Tier 2 (ICT) migrants will be able to switch into Skilled Worker from within the UK subject to meeting the requirements. This provides a path to settlement for Tier 2 (ICT) migrants, but time spent in Tier 2 (ICT) will not count towards the five-year residence requirement.|
What is not changing?
- The proposed job role must be at the highly skilled level of RQF 6 (degree level and above) and be on the Standard Occupational Code (SOC) job list.
- Applicants must have been working for an overseas entity linked by common ownership and control to the UK sponsor for at least 12 months before application unless their earnings are over £73,900 .
- Applicants must be earning at least £41,500 or the SOC code minimum, whichever is higher.
- ICT migrants may only remain in the UK for five years (nine years if they earn over £73,900).
- There are no regional salary thresholds or different arrangements for different parts of the UK.
- There is no English language requirement.
The Government intends to introduce a points-based element to this route, whereby applicants will be able to “trade” characteristics such as their specific job offer and qualifications against a lower salary. The current thinking is that the points system would be as follows:
|Offer of job by approved sponsor||No||20|
|Job at appropriate skill level||No||20|
|English at required level||No||10|
|Salary of £20,480 (minimum) – £23,039||Yes||0|
|Salary of £23,040 – £25,599||Yes||10|
|Salary of £25,600 or above||Yes||20|
|Job in a shortage occupation (as designated by the MAC)||Yes||20|
|Education qualification: PhD in subject relevant to the job||Yes||10|
|Education qualification: PhD in a STEM subject relevant to the job||Yes||20|
Since a total of 70 points is required to be eligible to apply, there is in fact limited flexibility in the system as only 20 points are tradeable. The effect of this is that the way the system will work is that individuals will be able to earn below the minimum salary for the route provided they have a relevant, high-level qualification or their job is deemed to be one where the required skills are in short supply.
The Government has stated that it intends to continue to refine the system and will consider adding additional tradeable attributes in the future. For example, this may include a greater range of qualification levels or other factors such as age or experience studying in the UK.
Highly skilled migrants
There are no substantial changes to the rules for highly skilled migrants.
The Global Talent route, which has replaced the Tier 1 (Exceptional Talent) route, will be extended to EEA nationals. Under this route, talented individuals will be granted immigration permission to work without restriction if they are endorsed by a specialist endorsing body following peer review.
The Government also intends to introduce a non-sponsored “Australian-style points-based-system” where visas would be granted based on academics, age, earning potential etc. without the need of a job offer. Those granted this visa would be able to work without restriction. This route will not be implemented by 1 January 2021 as the Government needs to undertake further research into this route’s viability.
Low skilled migrants
There will continue to be no dedicated visa route for low skilled roles which is defined as those roles below the RQF 3 skill level, for example roles in agriculture, retail, manufacturing and haulage.
The Government had previously proposed a temporary transitional visa to assist industries which rely heavily on lower skilled EEA workers, but this will no longer be implemented.
There will be sector specific seasonal visa programmes, such as the Seasonal Agricultural Workers programme, which will provide time limited visas via a quota system.
Tier 5 of the current immigration system contains a range of sub-categories for those undertaking temporary work in the UK, for example interns, religious workers and sportspeople. These visas require sponsorship from an organisation that holds a Tier 5 sponsor licence.
There will be no substantial changes to most of these sub-categories.
Tier 5 (Youth Mobility Scheme) may be extended on a reciprocal basis to the nationals of individual EEA countries.
Currently, those aged 18-30 from Australia, Canada, Hong Kong, Japan, Monaco, New Zealand, South Korea and Taiwan are able to apply for a visa valid for two years which permits unrestricted work in the UK.
Tier 5 visa holders will now be able to switch into the Skilled Worker visa category from within the UK.
There will be no substantial changes to the rules for investors.
Those with at least £2m who are able to transfer these funds to the UK and invest in qualifying assets will be able to continue to apply for visas under the Tier 1 (Investor) category. As long as the investment is maintained for a five year period, the migrant will eventually qualify to settle in the UK. Accelerated routes to settlement are available for those who invest £5m (settlement in three years) or £10m (settlement in two years).
We have prepared an in-depth note on this category.
There will be no substantial changes to the rules for innovators/entrepreneurs.
Tier 1 (Graduate Entrepreneur) and Tier 1 (Entrepreneur) was replaced by the Start-Up and Innovator categories in March 2019 and visas will be granted to those with a genuine and viable business plan who are endorsed by a Government approved endorsing body. For Start-Ups, no capital investment is required but Innovators will need to show that they have £50,000 to invest in their business.
We have prepared an in-depth note on this category.
Studying in the UK
There will be no substantial changes to the student rules.
Students are sponsored by Higher Educational Institutions and Schools, which hold a sponsor licence, to study in the UK under Tier 4. Adults, for example those attending UK universities, will be granted immigration permission under Tier 4 (General) while those at school will be granted Tier 4 (Child) immigration permission.
EEA nationals will require sponsorship to study in the UK from 1 January 2021.
There will be no changes to the route, which allows partners to join British citizens and those with permanent residence in the UK.
This is particularly relevant to EEA nationals who obtain either pre-settled or settled status under the EU Settlement Scheme since their partners will have to satisfy the requirements of this route if their relationship began after 31 December 2020.
This means that EEA nationals in this situation who have a status under the EU Settlement Scheme and wish to bring their partners to the UK will have to show that they are earning a minimum of £18,600 a year or have at least £62,500 in savings. Currently, there is no earnings or savings requirement for EEA nationals wishing to bring their partners to the UK.
Dependant visa holders will be able to switch into the Skilled Worker category from within the UK under the new system.
With no provision for low-skilled workers, limited changes to the sponsored worker category, few new options for high-net-worth individuals and the self-employed and no reduction in the fees associated with immigration applications, it is perhaps understandable that many are concerned that the new immigration system will not address all the challenges created by the end of EU free movement.