Services A-Z     Pricing

The UK Government’s plan for AI and the UK immigration White Paper

25 June 2025

At the start of the year, the Prime Minister outlined the UK Government's vision for making the UK a global leader in AI innovation in its response to the AI Opportunities Action Plan.
 

Does the UK really have a competitive offering for AI talent?
 

The Action Plan recommended that the Government "explore how the existing immigration system can be used to attract graduates from universities producing some of the world’s top AI talent."

Yet, the Government only “partially” accepted the Action Plan recommendation, saying:

The Industrial Strategy will set out [in Summer 2025] how the UK will attract highly skilled AI workers from abroad. The UK offers internationally competitive visas that can support a range of individual needs, including for talent to join UK-based organisations or to start their own business. Talented AI graduates from institutions not on the HPI [High Potential Individual] eligibility lists can enter the UK through any one of a number of other visa routes, including Skilled Worker, Innovator Founder, Government Authorised Exchange and Global Talent.”

The idea that the UK’s immigration offering is internationally competitive now is already a stretch. The High Potential Individual (HPI) category only applies to graduates from a small number of universities; the Skilled Worker category does not allow for entrepreneurship and flexible working arrangements; Innovator Founder is not fit for purpose and hardly used; Global Talent has a 50% refusal rate; and Government Authorised Exchange won’t help much aside from for internships. The UK immigration system is also increasingly expensive to use.

Enter the white paper
 

The immigration policy white paper released last month draws into even sharper focus the UK’s offering for AI (and other tech-related) talent. The Government says it wants to attract top talent but in the white paper shows its intent to shutdown much of the immigration system.

Some changes pinpointed in the white paper included:

  • Higher skill level for Skilled Worker applications. The skill level rises from RQF level 3 to 6 – a return to the pre-Brexit Tier 2 skill level.
     
  • Temporary Shortage List. For roles at level 3-5, only those recognised as a long-term shortage can be sponsored on a temporary basis with the possibility of a quota and restrictions on dependants. Workforce strategies will require sponsors to train and engage with the domestic workforce.
     
  • Higher salary thresholds. Increases are expected – possibly in relation to updated going rates.
     
  • English language test level. Where a test is needed, the required level will go from B1 to B2 (plus dependants will need to meet the English language requirements).
     
  • Settlement and citizenship. There is a proposal to increase the qualifying period for settlement (indefinite leave to remain) from 5 to 10 years. There is also uncertainty around whether this will apply to people already in the UK, including Skilled Workers.
  • Fees. The Immigration Skills Charge will increase for non-small sponsors from £1,000 per year of the sponsored visa to around £1,320. The increase in time to settlement is likely to mean incurring further fees.
  • Graduate route. Overseas students who complete a degree in the UK can apply to the Graduate route. Visas will be reduced from 24 months to 18 months.

Top AI talent may not be affected by the increase in Skilled Worker job skill level (assuming they will be filling highly specialised roles). But the mood music in the white paper is off putting to say the least. Young people coming to study for degrees in the UK can already generally not bring dependent family members and now the white paper suggests limiting Graduate visas. The threat of doubling the qualifying period for settlement could also be hugely disconcerting for AI and tech talent.

A few words of hope in the white paper
 

In contrast to the overall tone of further immigration restrictions in the white paper it does also include that “As part of our mission to promote growth, we will go further in ensuring that the very highly skilled have opportunities to come to the UK and access our targeted routes for the brightest and best global talent”.

The white paper says it will achieve that by:

  • Increase in numbers. The white papers says the Government will be “increasing the number of people arriving on our very high talent routes, alongside faster routes for bringing people to the UK who have the right skills and experience to supercharge UK growth in strategic industries.”
     
  • Research interns. By “increasing places to our scheme for research interns, including those working in the field of Artificial Intelligence, to allow businesses access to additional promising young talent.”
  • Global Talent. Global Talent visas will be made “simpler and easier for top scientific and design talent”.
     
  • High Potential Individual. The list of qualifying global universities will be doubled.
     
  • Innovator Founder. This infrequently used category for those starting an innovative business will be reviewed.
  • UK Expansion Worker. The number of workers an overseas business seeking to expand into the UK can sponsor will double from 5 to 10.

What can we expect next?
 

The government response to the Action Plan opens with “Artificial Intelligence is the defining opportunity of our generation.” The UK’s ability to recruit international talent will be crucial.

The white paper does not sit well against that. It is unknown when the changes highlighted in the white paper will come into effect – some are likely in the coming weeks and others are subject to consultation later in the year.

One size fits all policies are unhelpful. Carveouts should be created for crucial industries and sectors for growth – none more so than AI and tech.

Further information

If you have any queries on the issues raised above or any other Immigration matter, please contact a member of the Immigration team

This blog draws on themes originally shared in a LinkedIn post by Nicolas Rollason.

 

Latest blogs & news

Using the Skilled Worker route to recruit students on visas - tips for employers

With lots of students finishing their exams at this time of year, we often receive queries from hiring teams, looking to understand the Student visa category and how these candidates could transition into longer-term roles.

We set out below the different stages at which a Student visa holder might be hired, and how this impacts their right to work and the future process to join the business longer-term.

Any benefits of the new ‘concierge service’ for high-growth businesses would be completely outweighed by the earned settlement proposals

Comments from Chancellor Rachel Reeves in January at Davos have materialised into two new schemes to attract more high-growth businesses to the UK.

Announced as part of London Tech Week, the two new ‘concierge service’ schemes include visa fee reimbursements and a fast-track for Office for Investment-backed overseas businesses.

These schemes are announced as migrants, employers and prospective inward investors continue to hold their breath over whether the government will follow through on its drastic earned settlement proposals, as early as this Autumn. Uncertainty is exacerbated by the possible leadership contest in the near future which could mean a change in direction on immigration policy.

Looking Beyond Stereotypes: Credibility in Sexual Orientation Based Asylum Claims

The start of Pride Month in the UK provides an opportunity for immigration lawyers to reflect on the challenges facing LGBTQ+ asylum-seeking clients.

 

Still fresh in our minds is April’s BBC investigation, which suggested the existence of a shadow industry of legal advisers encouraging migrants to falsely claim to be gay in order to make asylum claims that would enable them to remain in the UK. While allegations of abuse of the asylum system should be investigated, the way sexuality‑based asylum claims are discussed in public debate matters. Focusing on isolated examples of alleged abuse risks misrepresenting how these claims are actually assessed and reinforcing assumptions that cause real harm to LGBTQ+ people seeking protection.

This type of reporting raises concerns as it obscures the reality of the system. It exaggerates the prevalence of fraud and risks embedding a culture of disbelief that already presents significant barriers for genuine claimants.

Can an employer pay a sponsored worker more than a non-sponsored worker?

One question clients often ask is whether an employer can lawfully pay a sponsored worker more than a non-sponsored worker doing the same role, particularly given the increases to minimum salary thresholds under the Skilled Worker route.

Migration Advisory Committee Reviews the Global Talent and Innovator Founder Routes - Have Your Say

The Migration Advisory Committee (MAC) wants to know what needs to change for the UK to be competitive about attracting Global Talent.

The MAC has launched a call for evidence on the Global Talent and Innovator Founder visa routes. The deadline is 11:59pm on 1 May 2026. Here's why this matters - and why you should respond

Tax mitigation uncertainty for financial settlements

Historically, a non domiciled divorcing couple have been able to mitigate their UK tax liabilities when making a lump sum payment to the other party to the divorce. Following guidance from HMRC in 2025, however, it seems that this particular tax mitigation strategy is no longer available and advice needs to be taken in respect of each party’s tax status, the timing and mechanism of payments and the likely tax liability.

Key takeaways from the Home Secretary’s Statement on Asylum Reforms: 30-months permission to stay for new claims and transitional arrangements for pending cases

Today, the Home Secretary Shabana Mahmood made a statement to Parliament in which she set out, in brief terms, the changes that are being made to the UK asylum system. The statement brings some welcome clarity for asylum seekers, but the position for existing refugees remains uncertain 
 

UK Immigration: Settled status and earned settlement could not be more different

The UK government’s new “earned settlement” proposals reveal a stark divide in how people can secure their right to live permanently in the UK. For EU, EEA nationals and Swiss nationals and their families who were living in the UK before Brexit, the EU Settlement Scheme increasingly seems a beacon of fairness. For everyone else, the future looks far less certain—and much harder.

Understanding the Government’s consultation on earned settlement

The UK Government’s Earned Settlement consultation proposes a fundamental shift in how migrants achieve Indefinite Leave to Remain (ILR). Instead of a time-based system, settlement would be earned through measurable contributions and integration. For the tech sector—one of the UK’s fastest-growing industries—these changes could have far-reaching consequences. 

Can you dismiss a skilled worker who does not qualify for ILR (Indefinite Leave to Remain) when you thought they would?

As I mentioned previously, I am still trying to get my head around the issues that continue to arise from the recent announcement made by the Home Secretary in relation to the settlement provisions. For now, I want to unpack one part of the change.

Extending right to work checks - what might be the implications?

The Border Security, Asylum and Immigration Act 2025 (which has just completed the parliamentary process by receiving Royal Assent on 2 December 2025) will introduce significant changes to right to work checks. The law hasn’t been implemented yet but employers need to be aware of the implications.

Start date confirmed for Immigration Skills Charge increase

The Immigration Skills Charge (ISC) will increase by 32% from £1,000 per year of the visa to £1,320 per year of the visa. For small sponsors the ISC will increase from £364 to £480 per year.
  

Government announces more white paper rule changes

The immigration policy white paper was released on 12 May 2025 and there were subsequent Skilled Worker rule changes on 22 July. On 14 October the Home Office released a statement of changes to the Immigration Rules setting out further upcoming rule amendments flowing from the white paper. There was also a Home Office press release.

Updates on British citizens travelling to the EU, and the Temporary Shortage List for Skilled Worker applications

We focus here on two updates - one on travel to the EU and one on the Temporary Shortage List for Skilled Worker applications based on lower skilled roles.

People, Not Past Mistakes: A Fairer Approach to Criminality in Immigration

I’ll acknowledge, it is a little edgy - in the current climate - to argue for a more nuanced approach to historic criminality in the immigration system. Sounds like the sort of thing that would feed a tabloid journalist with everything they think they need to know about an immigration lawyer.

 

Indefinite leave to remain (with your family): how the Immigration White Paper proposals will stunt opportunities for the children of migrants

The issue of indefinite leave to remain (ILR) has been a hot topic in the UK press. The Reform Leader Nigel Farage has suggested that his party would abolish the status and force people with ILR to return to some form of lesser immigration status which would block access to a range of rights which those who obtained the status acquire - access to welfare benefits, free NHS care and home student University fees for young people.

Permission to Visit - Goldilocks and the Three Bank Statements

From UKVI’s published statistics on immigration applications, in the most recent reported quarter (March to June 2025) UKVI received 938,527 visit visa applications – the highest ever reported in at least the last 20 years. In that quarter, UKVI also refused 156,659 visit visa applications (and issued 790,708 visas), unsurprisingly, also the highest number reported. The refusal rate for this quarter (which will not cover all applications received) was just shy of 20%.

Suspension of the UK’s Refugee Family Reunion scheme: an afront to the principle of family unity

The Secretary of State for the Home Department (“SSHD”) Yvette Cooper has trained her crosshairs squarely on foreign national families in her recent announcement, declaring the suspension and reform of the refugee family reunion scheme and a review of “the application of Article 8 in the immigration and asylum system.” The suspension came with a statement of changes to the Immigration Rules today at 3pm.

What to do if you receive a civil penalty for illegal working

UKVI can issue a whopping fine of up to £60,000 to a company that is alleged to have employed someone illegally in the UK. The size of the fine is partly determined by whether the breach is a first for the business or not.

Why more Americans are seeking British citizenship in 2025

As political and economic uncertainties continue to shape the global landscape, a growing number of Americans are setting their sights on the United Kingdom, not just for travel or business, but for a new life altogether.

Skip to content Home About Us Insights Services Contact Accessibility