April 4, 2024, will be remembered as the date the UK’s skilled migration landscape fundamentally shifted. In a move designed to reduce net migration by 300,000 annually, the government implemented a massive 48% increase in the general salary threshold for Skilled Worker visas. Moving into 2026, the market has now had nearly two years to absorb this shock, and the effects are reshaping recruitment strategies nationwide.
This article details the mechanics of the threshold changes and the introduction of the Immigration Salary List (ISL).
The £41,700 Threshold Explained
Previously, the general threshold was set at £26,200—a figure roughly aligned with the 25th percentile of UK earnings. The new requirement of £41,700 aligns with the median usage of full-time gross annual earnings for these occupations.
This jump instantly rendered thousands of roles ineligible for sponsorship, particularly in the hospitality, retail, and junior administrative sectors outside of London. For a role to be sponsorable, it must pay the higher of:
- The general threshold of £41,700.
- The “going rate” for the specific occupation code (SOC 2020).
The “Going Rate” Trap
It is not just the general threshold that rose. The “going rates” for individual jobs were also recalibrated from the 25th percentile to the 50th percentile (median).
- Example: A senior software engineer might easily meet the £38,700 general threshold. However, if the median wage for their specific SOC code is £55,000, the sponsor must pay £55,000. This dual-lock mechanism ensures that foreign workers cannot be used to undercut domestic wages.
The Immigration Salary List (ISL)
The old “Shortage Occupation List” (SOL), which allowed employers to pay 20% less than the going rate, has been abolished. In its place is the Immigration Salary List (ISL).
- No 20% Discount: Being on the ISL no longer offers a 20% discount on the going rate. It only offers a lower general threshold (usually £33,400 instead of £41,700), but the employer must still pay the occupation’s standard median wage.
- Fewer Roles: The list is far shorter, focused largely on construction, care, and specialized engineering roles where the government concedes overseas labor is unavoidable.
Who is Exempt?
To prevent the total collapse of graduate recruitment, strictly defined “New Entrants” are eligible for a salary discount.
- Criteria: Applicants under 26, those switching from Student visas, or those working towards professional qualifications (e.g., architects, accountants).
- The Discount: They can be paid 70% of the going rate, provided it is at least £33,400 per year.
- Time Limit: This status is valid for a maximum of 4 years (including time spent on a Graduate visa), after which they must move onto the full rate or leave the UK.
Health and Care Visa Exception
Crucially, the Health and Care Worker visa remains exempt from the £41,700 threshold. Keep in mind, however, that while their salary requirement is lower (£25,000 minimum), they are subject to separate restrictions regarding dependents (for care workers) and sponsor legitimacy.
Regional Impact
The policy has had a disproportionate impact on the UK’s regions. A £41,700 salary is a high-end wage in parts of the North East, Wales, and Northern Ireland, whereas it is a standard junior-mid level salary in London. Critics argue this effectively creates a “London-only” visa system for the private sector, making it prohibitively expensive for regional businesses to access global talent.
Conclusion
The days of “cheap” sponsorship are over. Employers must now treat visa sponsorship as a premium route for high-value talent. The strategy of using sponsorship to fill lower-mid level vacancies is no longer mathematically viable for most businesses.