National Audit Office: Changes to Skilled Worker visas need whole government collaboration
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The Skilled Worker visa is the main route for working in the UK,
adaptable to economic needs and government policies.
However,changes to the route have not been fully assessed and there
has been limited collaboration with the Home Office and
departmentson immigration and addressing skills shortages from
within the domestic labour market, says a report by the
NAO. Ahead of the government's upcoming Immigration
White Paper, the independent public spending...Request free trial
The Skilled Worker visa is the main route for working in the UK, adaptable to economic needs and government policies. However,changes to the route have not been fully assessed and there has been limited collaboration with the Home Office and departmentson immigration and addressing skills shortages from within the domestic labour market, says a report by the NAO. Ahead of the government's upcoming Immigration White Paper, the independent public spending watchdog has examined the Home Office's management of the Skilled Worker visa route, which opened in December 2020. Changes to immigration rules are subject to collective government agreement. The Home Office is responsible for immigration policy and leads the assessment of potential changes. While it reviewed the use of the route, it did not produce an impact assessment before changing entry requirements for care workers in 2022, nor has it evaluated the route since this expansion. Changes to reduce the use of the route in Spring 2024 – to help reduce net migration - were made with limited consultation or without full analysis of potential consequences for different industries and businesses. The number of Skilled Worker visas issued has fallen in 2024, with 252,700 fewer compared with 2023 - a 50% reduction. The report shows the changes have reduced use of the route by sectors including social care, construction and architecture. The government's aim for the Skilled Worker visa was to recruit overseas workers, alongside wider government initiatives to grow the domestic labour market. However, the Home Office and departments have not always collaborated effectively on immigration and skills policies. Overall, much higher-than-expected numbers have used the Skilled Worker route since 2021 – driven by the expansion in 2022 to include care workers. But the report found the Home Office does not fully understand how the route is being used or its contribution to the economy. There is evidence of benefits, including increased revenue to government, but also consequences. There has been an increase in people claiming permanent residency in the UK; an increase in dependants of Skilled Worker visa holders entering the UK; and an increase in people on a Skilled Worker visa who later claimed asylum in the UK. The Home Office has commissioned an evaluation of the route, with a report expected in 2025, and the NAO is encouraging the Home Office to publish this report within the next three months so it can better understand the consequences of changing entry requirements, improve customer experience and prevent visa applicants from being exploited. The scale of exploitation of Skilled Worker visa holders is not fully known, but the NAO found the government is not joined up when it comes to tackling the exploitation of migrants, with widespread evidence of exploitation in the care sector. This includes criminal activity such as trafficking, forced labour or debt bondage, and labour market abuse such as underpayment of wages, and inappropriate working hours or conditions. Despite efforts to improve communication, local authorities are not always aware when sponsor licences have been revoked, leaving people to remain in the UK without a valid visa. It is estimated that 34,000 people in the care sector have been affected by the Home Office revoking sponsor licences 1. The Home Office has effectively processed a large volume of applications, processing 94% of ‘straightforward' applications (970,200 cases) within service standards – slightly below its target of 98.5% 2. Generally, applicants (86%) have been satisfied with the application service, which is above the Home Office's target of 80%. The NAO found it offers a range of services but could make better use of its management information. The NAO also found the Home Office has strengthened its approach to tackling misuse of the visa system. It has started digital audits; established a Risk Hub to centralise risk identification; and introduced new checks to identify and target high-risk cases, and technology to check suspicious payments. As a result, the approval rate on applications has reduced from 99% in 2021 to 79% in 2024 and the refusal rate has risen from 7% to 13% on sponsor licence applications. The NAO has made several recommendations to help the Home Office strengthen its stewardship of the Skilled Worker visa system. These include:
Gareth Davies, head of the NAO, said:
“The Home Office, and departments,
must make better use of data to understand the impacts of changes
to the Skilled Worker visa route, improve customer experiences
and prevent the exploitation of visa holders. Without this
understanding, it cannot ensure value for money in managing the
visa system.” Press notices and reports are available from the date of publication on the NAO website. Hard copies can be obtained by using the relevant links on our website.
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