Immigration spotlight

As the UK immigration landscape continues to evolve at pace, this summer has brought a wave of significant developments that employers should be aware of. From sponsor licence enforcement activity and phishing scams to proposed reforms to settlement routes and new citizenship pathways for Irish nationals, the system is undergoing notable shifts. In this first edition of our Immigration Spotlight, we round up key updates and highlight emerging risks and opportunities for sponsors navigating an increasingly complex environment.

Sponsor crackdown

The Home Office has revoked a record number of sponsor licences in the past year, with nearly 2,000 employers losing their ability to sponsor overseas workers due to non-compliance. This sharp increase highlights the government’s ongoing focus on enforcement and the serious consequences for employers who fail to meet their sponsor duties. For practical guidance on how to protect your sponsor licence, please see our recent article: Duties of Defence: Protecting your sponsor licence.

Judicial review: sponsor licence revocation upheld

A food retailer in Tooting recently lost its judicial review challenge against the Home Office’s decision to revoke its sponsor licence. The revocation followed a compliance visit that uncovered significant discrepancies between the actual duties of sponsored employees and those described in their Certificates of Sponsorship. The High Court made clear that sponsors must keep strong evidence showing employees are genuinely doing the jobs they were sponsored for. The judgment also signals a practical shift in how sponsor licence enforcement works: fairness can be achieved through the overall process, not just by following a strict set of steps. Importantly, if there are serious compliance issues, small mistakes in the Home Office’s process are unlikely to overturn a licence revocation. This gives more certainty to Sponsors about what’s expected in sponsor licence enforcement.

Parliament debates proposed changes to ILR pathway

On 8 September 2025, Parliament debated two e-petitions calling for the government to retain the 5-year qualifying period for Indefinite Leave to Remain (ILR) for Skilled Workers and Hong Kong (BNO) holders. Over 272,000 people signed these petitions, reflecting widespread concern about proposed changes to extend the standard ILR pathway to 10 years. MPs from all parties highlighted the risks of applying changes retrospectively, emphasising fairness, trust and the economic value of skilled migrants. The government has pledged to consult the public before making any final decisions, with strong cross-party backing for upholding existing commitments and recognising the vital contributions of both skilled workers and Hong Kong residents.

New citizenship pathway for Irish nationals

A simplified route to British citizenship is now available for Irish nationals, underscoring the longstanding ties between the UK and Ireland. From 22 July 2025, Irish citizens residing in the UK, Channel Islands, or Isle of Man can benefit from a streamlined application process. Notably, applicants are not required to complete the English language or Life in the UK tests, and the registration fee is set at half the standard rate. This initiative is designed to make it easier for Irish citizens who have made the UK their home to formalise their status and reflects the close relationship between the two nations.

Be alert: sponsor licence phishing scams on the rise

Employers sponsoring overseas workers should be vigilant against a sophisticated phishing scam targeting sponsor licence holders. Recent reports highlight that fraudsters are sending emails that appear to be from the Home Office, warning of urgent compliance issues or licence suspensions. These emails contain links to convincing fraudulent Home Office login pages designed to steal user credentials for the sponsorship management system. To protect your organisation:

• Never click on suspicious links or enter login details via email prompts.

• Enable multi-factor authentication for all users of the sponsorship management system.

• Educate your team about phishing risks and how to spot fraudulent emails.

• Strengthen your email security to filter out malicious messages.

If you receive a suspicious message, report it to your IT team and the Home Office immediately. Staying alert and proactive is the best defence against these evolving threats.

Proving pre-settled status under the EUSS

On 9 September 2025, The Home Office have recently clarified that people with pre-settled status under the EU Settlement Scheme keep this status even if they later get another UK visa, as long as they meet eligibility criteria. Only the most recent status appears on their eVisa, so employers (and landlords) must use the Home Office checking services to confirm pre-settled status. If another visa ends, holders can ask the Home Office to restore pre-settled status to their eVisa.

Home Secretary confirms 10-year settlement rule with additional tests

In her Labour Conference speech, the newly appointed Home Secretary Shabana Mahmood reaffirmed plans first outlined in the May White Paper to extend the qualifying period for Indefinite Leave to Remain (ILR) from 5 years to 10 years. Under her plans, applicants will need to be in work, meet a higher English Language threshold, hold a clean criminal record and demonstrate contribution to UK society (e.g. through volunteering, National Insurance contributions or community involvement). Settlement will be linked to “contribution” with earlier eligibility for those making contributions and longer waiting periods for those who do not. Our advice is to start keeping a record of their employment, NI contributions and wider community involvement as these factors are expected to play a greater role in future ILR applications.

If you have questions about how these changes might affect your organisation, please contact our Corporate Immigration team for tailored advice and support.