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UK scraps Rs 41 lakh minimum income rule for family visa, relief for Indians | Personal Finance

Yvette Cooper

British Home Secretary Yvette Cooper (left). Photo: PTI

Good news for Indians! British citizens and permanent residents will no longer have to earn at least Rs 41.5 lakh a year to bring family members to the UK. A planned increase in the minimum income threshold has been shelved by the new Labour government. The move, which would affect many Indian families, was originally introduced by former prime minister Rishi Sunak to reduce record immigration numbers.


No immediate changes

UK Home Secretary Yvette Cooper has announced to the House of Commons that there will be no further increase in the current annual income requirement of £29,000 (approx. Rs. 31,16,757) until the Migration Advisory Committee (MAC) completes a review of the impact of these increases on families. Cooper said in a written statement: “Family immigration rules, including the minimum income requirement, must balance respect for family life with ensuring the UK’s economic prosperity.”

The MAC has also been tasked with reviewing the dependence of key sectors on international recruitment, particularly in IT and engineering, which rely heavily on talent from countries such as India. “As a first step, I am tasking the MAC with reviewing the dependence of key sectors on international recruitment, particularly IT and engineering,” Cooper explained.


Impact on Indian families

As part of a package of measures to curb migration, in December last year, then-Prime Minister Rishi Sunak’s Conservative-led government announced that from April this year the minimum salary or income required for British citizens to sponsor long-term family visas for spouses or parents would rise from £18,600 to £29,000 and then to £38,700 – in line with the minimum income requirement for a skilled worker visa.

The planned increase has raised concerns among analysts about its potential impact on lower-income families. Simran Brar, a partner at Karanjawala & Co, pointed to the contrast between the strict UK policy and the more flexible rules in countries like the US, Canada and Australia. “For example, students on F-1 visas can apply for dependents (spouse and children) to get F-2 visas. Canada and Australia also allow foreign graduates to work for two to four years after graduation,” Brar explained.

Aritra Ghosal, founder and director of OneStep Global, stressed the importance of considering the broader implications of such policies. “International students bring in significant revenue from tuition fees, which helps expand course offerings and compensate for national shortfalls in student and research funding,” Ghosal said. He added that international students provide short-term labour for UK businesses and emphasised the need for a balanced approach that supports economic growth and the education sector.


Indians among the main sponsors of visas

According to UK Home Office statistics, in 2023, Indians made up the second largest group in the family visa category with 5,248 visas, behind Pakistanis and ahead of Bangladeshis.


Conservative government to further restrict visas

The new Labour government has inherited many of the visa restrictions from the previous Tory government, including those on international students and care workers bringing family members. Cooper has noted the importance of protecting the immigration system from abuse while recognising the economic and academic contribution that international students make.


Impact on students’ dependents

The number of dependants accompanying students to the UK has fallen by as much as 80%, while there were more than 26,000 fewer student visa applications between January and March compared with the same period in 2023, according to a government press release in May.

First published: August 5, 2024 | 19:19 IST