How to Fix the UK’s Broken Visa System
Our new report examines the flaws in the Skilled Worker visa route that are harming Britain’s growth prospects – and how to design a visa system that’s fit for the future.
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Britain’s Visa System is Holding Back Growth
The UK economy is stuck in a low-growth rut, and skills shortages are part of the story.
Firms in key sectors can’t fill crucial roles in fields like AI, engineering and advanced manufacturing because there aren’t enough qualified staff to go around. Recent restrictions to the Skilled Worker visa route have made it even harder to hire shortage specialists.
The post-Brexit visa system was intended to allow the world’s brightest and best to contribute to the UK’s most promising companies.
But our findings show that only 32% of work visas issued since 2021 have gone to highly-skilled professionals in strategic industries. The visa system is not being utilised efficiently, placing an artificial cap on the most productive parts of the British economy.
Our report analyses the official data to reveal how current immigration policy is misaligned with the needs of the economy. We also propose a redesign of the Skilled Worker visa system that would allow the Government to meet its two objectives – to grow the economy while reducing net migration from its currently elevated levels.
Key points
Growth at risk
Our surveys with leading corporates found that 55% have been financially impacted by the previous government’s reforms to the Skilled Worker visa route.
Their difficulties filling strategic, high-value roles will put downward pressure on the UK’s potential growth rate at a time when it is already stagnating.
Strategic sectors strangled
The Government’s eight strategic sectors are all crippled by skill gaps and shortages that are not met by current levels of Skilled Worker usage.
If this trend continues, flagship missions like net zero, AI and securing London’s status as a financial hub will all be put at risk.
Reform enables growth
While immigration has reached record highs since 2021, only 32% of Work visas have gone to the most skilled professionals.
This suggests the Government has headroom to reduce net migration without further hitting growth sectors. But this will take a fundamental redesign of the Skilled Worker visa route’s design and eligibility criteria.
Resources for Skilled Worker Sponsors
How to Apply for a Sponsor Licence
Sponsor Licence Changes Explained
Visa Sponsor Compliance Guide
Why Costs are on the Rise
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