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The government鈥檚 immigration white paper, published in May, sets out a series of key reforms of the UK鈥檚 work-based migration system, aimed at reducing employers鈥� dependence on overseas workers. This is a potential minefield for the construction industry, which has become increasingly reliant on the visa system to fill vacancies. With its emphasis on tougher visa rules and costs, and an extended route to settlement, the white paper has the potential to destabilise a sector already straining under chronic labour shortages.  

For an industry that has historically leaned on international workers 鈥� first from the EU, and more recently from non-EU countries via the skilled worker visa route 鈥� the timing of these restrictions is not ideal. Construction projects are on the rise again at a time when the workforce is thinning. 

For an industry that has historically leaned on international workers, the timing is not ideal 

Older workers are retiring, apprenticeship uptake is lagging, and the domestic labour market is simply not replenishing the trades fast enough. The construction industry has looked to the sponsorship system to plug the gaps, with numbers of visas issued to the sector increasing steadily. 

The white paper sets out several measures aimed at reducing the number of sponsorship visa holders in the UK. One key change, which is now in force from 22 July 2025, is an increase in the minimum skill level required to obtain a skilled worker visa. By raising the skills bar from A-level to undergraduate-degree level, the new framework disqualifies some skilled manual trade roles. These functions are critical to delivering even the most basic of building projects. 

The new system maintains lists of roles that will be eligible for sponsorship even if they do not reach the necessary undergraduate-degree skill level. The immigration salary list (ISL) is being retained for a short period and a new list 鈥� the temporary shortage list (TSL) 鈥� has been introduced which contains the roles that are skilled below degree level but can still be sponsored. The good news is that a number of construction roles are still eligible for a skilled worker visa, albeit with fewer privileges in relation to bringing dependents. Furthermore, the roles on the TSL are only guaranteed to stay on it until the end of 2026. The TSL will be subject to review, so unless exemptions are consistently carved out for construction, employers may find the available talent pool significantly reduced later.

There is also a proposal to double the settlement period for skilled workers 鈥� from five to 10 years. While the government suggests that workers who 鈥渃ontribute significantly鈥� to UK society may be granted concessions, little is known about how this will be interpreted or whether it will apply retrospectively to workers already in the UK. For international construction workers considering whether to bring their skills to the UK, a decade-long wait for settlement, combined with rising visa renewal fees and limited rights for family members, could prove a strong deterrent.

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The financial burden is growing for employers too. In addition to the previously announced application fee increases, the immigration skills charge (ISC) is set to rise by 32%. Employers must cover this fee as it is considered a levy on the use of the immigration system. Higher costs will impact budgets, especially for small and medium-sized contractors that are already navigating tight margins and fluctuating material costs. With employers also facing paying the ISC for longer if the 10-year route to settlement becomes a reality, the cost of sponsoring workers may soon outweigh the benefit.

Taken together, these reforms paint a challenging picture for construction leaders trying to plan their workforce strategy

English language requirements are also being tightened, with skilled visa applicants expected to meet a higher standard (B2, which is equivalent to A-level), and dependant partners now also subject to language tests. While this may lead to better levels of integration, it could also exclude workers who might otherwise contribute meaningfully on site, where technical competence and team co-ordination often matter more than language fluency.

Taken together, these reforms paint a challenging picture for construction leaders trying to plan their workforce strategy. While the government promotes upskilling the domestic workforce as the long-term solution, such initiatives take time to resolve the immediate skills gap. In the short to medium term, restrictions on international recruitment could impact delivery targets and exacerbate delays.

Now is the time for employers to act. The white paper outlines a series of proposed changes; some of these are yet to be formalised into law and there is little detail on the timetable for implementation. This creates a limited window in which businesses can still recruit under the current immigration rules. Employers that move swiftly may be able to secure essential workers before the new restrictions are implemented 鈥� but that opportunity is shrinking fast.

Joanna Hunt is a partner at DAC Beachcroft