UK Immigration Changes 2026: What Employers Need to Know About English Language and Settlement Rules

What are the key changes?

From 8 January 2026, individuals applying under the Skilled Worker, High Potential Individual or Scale-up routes will need to prove their English language ability at level B2 of the Common European Framework of Reference for Languages (CEFR). This is an increase from the previous B1 level and reflects the government’s commitment to “restoring control over the immigration system” as outlined in its May 2025 White Paper.

This higher language requirement adds to recent increases in skills and salary thresholds, making it harder for new applicants to meet eligibility criteria for a Skilled Worker visa.

Settlement period proposals

The UK government has also launched a consultation on extending the settlement period for individuals who on a visa that is eligible for settlement. The current settlement period for most visas in the UK, such as Skilled Worker and Spouse visas, is currently five years. However, the proposal suggests increasing this from five years to up to 10 years, with flexibility:

• If the individual has made certain contributions to the UK during their time in the UK, the settlement period can be decreased,
• The period could be extended if the individual has breached immigration laws or has relied on the state for assistance during their time here.

Importantly, the UK government has announced that this will apply for all visa holders and could be applied retrospectively, meaning that this could be a huge blow for those currently in the UK and are nearing settlement.

Immigration Skills Charge increase

As of 16 December 2025, the Home Office increased their Immigration Skills Charge by 32%. The new rates are:

• £480 per year for small/charitable businesses.
• £1,320 per year for large businesses.

This is a significant increase and will influence whether businesses choose to sponsor migrant workers to fulfil roles within their business.

What do these changes mean for employers?

For businesses, sponsoring migrant workers is becoming more challenging due to:

• Higher English language requirements
• Increased skill and salary thresholds
• Higher Immigration Skills Charges
• Potential longer settlement periods

These factors increase the overall cost and complexity of sponsorship. Therefore, employers should review workforce planning and consider:

• Budgeting for higher sponsorship costs
• Assessing whether roles can be filled locally
• Preparing for potential delays in settlement

What should you do now?

Review your current sponsorship arrangements and budget for potential cost increases.

Submit feedback on the settlement consultation before 12 February 2026.

Seek early advice if you plan to sponsor migrant workers in 2026.

How we can help

If you are currently thinking of sponsoring migrant workers and are not sure of the impact the recent or potential immigration changes will have for you, please get in touch with our immigration team and we can discuss this with you.