Reform UK has proposed a new tax regime that could increase the cost of employing foreign workers in the UK, raising questions for current visa holders and people considering a move to Britain.
The proposals would require employers to pay higher employment costs for non-British workers through a combination of National Insurance changes and a new migrant labour levy. While the measures are not government policy and would require legislation before they could take effect, they have attracted attention because of the potential impact on international recruitment and overseas workers already living in the UK.
For anyone planning to apply for a UK visa, the immediate question is straightforward: could these proposals make it harder to find work in the UK?
What Has Reform UK Proposed?
Reform UK has proposed a new tax regime that could increase the cost of employing foreign workers in the UK.
Under plans announced by Treasury spokesperson Robert Jenrick, employers would pay lower National Insurance contributions for British workers while continuing to pay higher rates for non-British workers. The party has also proposed a separate “migrant labour levy”, an additional annual charge on employers hiring foreign nationals.
According to Reform, the objective is to encourage businesses to recruit more British workers and reduce reliance on overseas labour. The party has described the approach as part of a wider “British workers first” policy.
While full details have not yet been published, Reform has suggested that employers could face additional costs of around £3,750 per year for some lower-paid foreign workers. Higher-paid and specialist roles would be subject to lower charges.
The proposals have attracted attention because they would move beyond traditional immigration controls such as visa eligibility rules and sponsorship requirements. Instead, they would seek to influence employer hiring decisions through the tax system by increasing the cost of employing certain categories of workers.
The measures are not currently government policy. Reform UK is not in government and any such changes would require legislation before they could take effect.
Could the Proposals Affect UK Visa Applicants?
Potentially, although one of the biggest unanswered questions is exactly which workers would fall within scope.
Initial reports suggest the proposals could apply to a broad range of non-British workers rather than being limited to sponsored employees alone. That means the measures could potentially affect Skilled Worker visa holders, Graduate visa holders and people living in the UK under family-based immigration routes.
Questions have also been raised regarding workers who already have permanent rights to live and work in the UK. Reports indicate that the proposals could be linked to British citizenship rather than immigration status, which means some individuals with settled status or indefinite leave to remain could potentially be affected.
For visa applicants, the immediate concern is likely to be whether higher employment costs would make employers less willing to recruit internationally. While that is one of the stated objectives of the proposals, the practical impact would vary significantly between sectors and occupations.
Many UK employers recruit overseas workers because they cannot find enough suitable candidates in the domestic labour market. In sectors facing ongoing labour shortages, access to international talent remains an important part of workforce planning.
At present, no draft legislation has been published and there is no confirmed definition of which workers would be covered. The proposals therefore raise important questions for future applicants, but they do not currently change eligibility for any UK visa route.
Would UK Employers Still Recruit International Workers?
One of the main concerns for overseas workers is whether higher employment costs could reduce opportunities to work in the UK.
While the proposals are designed to encourage employers to recruit more British workers, labour market realities are often more complicated. Many UK businesses recruit internationally because they cannot find enough suitable candidates locally, particularly in sectors experiencing skills shortages or recruitment difficulties.
Healthcare, social care, engineering, hospitality, logistics and parts of the technology sector have all relied on international recruitment in recent years. In many cases, overseas workers are recruited because employers need access to specific skills, experience or workforce capacity rather than because international recruitment is cheaper.
Higher employment costs may influence recruitment decisions at the margins, particularly for lower-paid roles. However, employers would still need access to workers with the skills and experience required to operate their businesses.
The impact is therefore likely to vary considerably between sectors, occupations and employers. Businesses facing persistent recruitment shortages may continue to recruit internationally even if employment costs increase, while employers with a larger pool of domestic candidates may have greater flexibility in their hiring decisions.
For prospective visa applicants, the key point is that UK demand for international workers is driven by labour market needs as well as immigration policy. Any future changes would need to operate within that wider economic reality.
What Happens Next?
At present, the proposals remain political commitments rather than government policy.
Reform UK is not currently in government and no draft legislation has been published. Any such measures would require legislation before they could be implemented.
There are also significant practical and legal questions that remain unanswered. Policymakers would need to determine which workers fall within scope, how employers would identify affected employees and how any new system would operate alongside existing immigration and employment rules.
Questions have also been raised regarding workers who already have permanent rights to live and work in the UK. Critics argue that extending the proposals to some settled workers could create legal and diplomatic challenges, particularly where EU citizens with settled status are concerned.
For visa applicants, the most important point is that nothing has changed. Skilled Worker visas, family visas, Graduate visas and other immigration routes continue to operate under the current rules.
Anyone considering a move to the UK should therefore focus on the existing immigration requirements rather than proposals that may take years to develop and may never become law.
What Should Applicants Do Now?
There is no immediate action required. UK visa eligibility requirements, sponsorship rules and immigration procedures remain unchanged. Employers can continue recruiting overseas workers and sponsoring eligible applicants under the current system.
For prospective applicants, the proposals are best viewed as part of a wider political debate about immigration and labour market policy rather than a change to UK immigration law.
Anyone planning a UK visa application should continue preparing their application based on the current rules while monitoring future policy developments as they emerge.
