Keir Starmer’s UK election victory: What it means for Indian immigrants | Personal finance

Changes made

The Skilled Worker Visa, the UK’s largest route for labour migration, has already changed. From April, the minimum salary threshold has increased to £38,700 or the prevailing rate for the job, whichever is higher. Social workers can also no longer take dependants with them on their visas. The list of jobs eligible for sponsorship with a reduced salary requirement has been shortened, and the minimum income requirement for sponsoring a spouse or civil partner visa has increased from £18,600 to £29,000.

Labour’s position on legal immigration

Sir Keir Starmer announced a plan on 2 June to cut net migration by training more workers in the UK and improving working conditions. He promised to introduce rules to stop employers relying on skilled workers from abroad by default. Labour has “no plans” to change the ban on health and care workers bringing their families to the UK, and its manifesto promises to “cut net migration” without setting a specific target.

Where do migrants come from?

In 2023, of the 1,218,000 migrants arriving in the UK, 10% (126,000) were EU nationals, a similar figure to 116,000 in 2022. Some 85% (1,031,000) were from outside the EU, with the five most common non-EU nationalities being:

Indian: 250,000

Nigerian: 141,000

Chinese: 90,000

Pakistani: 83,000

Zimbabwe: 36,000

Student migration

International students and their families have contributed significantly to the increase in net migration since 2019. After completing their studies, international students can stay and work in the UK for two years, or three years if they are a PhD graduate, by changing to a Graduate Visa. However, in January 2024, most students, apart from those on postgraduate studies, were banned from bringing family members to the UK. Labour plans to maintain this ban.

Impact on immigration

Britain is struggling with high unemployment, a key factor in the Conservatives’ election defeat. The Labour government is focusing on creating and retaining jobs for local people. “Apart from the healthcare sector and some professions, the strict immigration policy for skilled workers is likely to continue,” says Ajay Sharma, founder of Abhinav Immigration Service. He adds: “The UK’s strict immigration policy is driven by the need to protect local jobs and attract foreign direct investment amid the economic challenges of Brexit and the Russia-Ukraine war.”

How will this affect Hindus?

Changes to immigration policy could significantly impact Indians, who make up a significant proportion of non-EU workers in the UK. Tighter controls could limit the ability of Indians to move to the UK to work. However, it is important to recognise the gap in the domestic workforce. Vandana Mahajan, founder and director of Futures Abroad, explains: “It will take time to train local workers to fill the positions currently held by migrants.”

Balancing economic needs

Mahajan believes a Labor victory could lead to a more balanced and flexible immigration policy. Labor could strengthen the Migration Advisory Committee (MAC) and retain the graduate visa route. They could also introduce tougher measures against employers who abuse the immigration system.

Options for Hindus

Mahajan lists several visa options available to Indian citizens:

Visa for a skilled worker:For Indians who have job offers in sectors where there is a shortage of skilled workers.

Global Talent Visa:For individuals recognized as leaders or potential leaders in the fields of science, research, art and digital technologies.

Graduates’ route:Indian students completing their studies in the UK can stay there for two years (three years for PhD graduates) to find work.

Intra-company transfer visa: For employees of international companies relocating to a UK office.

Aritra Ghosal, founder and director of OneStep Global, breaks down the nuances of immigration change. “The UK continues to offer top-notch education, research opportunities and post-graduation job options,” says Ghosal.

He stresses that these policies are designed to ensure that immigration has a positive impact on the UK economy. However, it is important to consider the wider implications. Ghosal explains: “International students bring in significant revenue from tuition fees, which helps to expand course offerings and compensate for funding shortfalls for domestic students and research.”

In addition, international students provide short-term labour for British companies. Ghosal notes: “It is crucial that the government maintains a balanced approach that supports both economic growth and the needs of the education sector.”

Balancing jobs and immigration: steps the UK government can take

To tackle the unemployment and price crisis while allowing migrants to come in, the UK government could:

Introduction of targeted visa programs:Focus on sectors with skills shortages by offering specialist visas for professionals in those areas.

Streamline your visa processes:Simplify the skilled recruitment process to ensure the most talented individuals are quickly and efficiently integrated into the workforce.

Economic Impact Assessments:Regularly evaluate the impact of immigration policies on the economy to ensure they are meeting the country’s needs without unduly limiting the valuable contributions that immigrants make.

Improve integration programs:Support integration initiatives to help immigrants settle in and make positive contributions to their communities, reducing public concerns about immigration.