The UK government’s Statement of Changes HC 997, which came into effect on 22 July 2025, has brought significant and far-reaching implications for the country’s hospitality industry. As part of the government’s broader immigration strategy aimed at reducing overall migration, this policy overhaul has altered visa eligibility criteria, removed key roles from the Skilled Worker route, and increased salary thresholds.
For an industry already grappling with labour shortages, rising operational costs, and post-pandemic recovery challenges, these immigration changes represent a considerable shift in how hospitality businesses source, sponsor, and retain talent.
Summary of Immigration Rule Changes
The new immigration rule changes implemented on 22 July 2025 are part of the UK government’s broader immigration reform agenda, branded as the “Plan for Change.” The stated objective is to prioritise higher-skilled migration while reducing reliance on international recruitment in sectors considered low-skilled or vulnerable to exploitation. The Appendix Skilled Worker outlines several crucial adjustments to the Skilled Worker visa route and related schemes. These include:
- An increase in the general salary threshold from £38,700 to £41,700 for new Skilled Worker applicants.
- A rise in the new entrant threshold from £30,960 to £33,400.
- An increase in the salary threshold for existing Skilled Workers from £29,000 to £31,300.
- A change in the required skill level for sponsorship, from RQF Level 3 (A-level equivalent) to RQF Level 6 (degree level).
- The removal of over 180 roles from Skilled Worker eligibility, including many from the hospitality sector.
- Introduction of a Temporary Shortage Occupation List, which allows short-term sponsorship for some non-eligible roles until 31 December 2026.
Roles Affected in the Hospitality Industry
One of the most significant impacts of the new immigration rules is the removal of key hospitality industry roles from the Skilled Worker visa eligibility list. As of 22 July 2025, the following positions can no longer be sponsored under the Skilled Worker route:
- 1221 Hotel and accommodation managers and proprietors
- 1222 Restaurant and catering establishment managers and proprietors
- 1223 Publicans and managers of licensed premises
- 1224 Leisure and sports managers and proprietors
- 5434 Chefs
- 5436 Catering and bar manager
- 3557 Events managers and organisers
Previously considered eligible under RQF Level 3, these roles have now been deemed ineligible due to the new RQF Level 6 requirement, equivalent to a university degree. This change affects both new applicants from overseas and employers looking to fill vacancies in the UK with international talent.
Can Existing Sponsored Workers Continue?
While the changes eliminate sponsorship for new candidates in affected roles, existing Skilled Workers who were assigned a Certificate of Sponsorship (CoS) before 22 July 2025 can continue to be sponsored. This includes those changing employers, provided they maintain continuous permission under the Skilled Worker route.
Additionally, workers who were sponsored before 4 April 2024 benefit from the lower salary threshold of £31,300, even after the new rules have taken effect. Employers must, however, carefully assess the sponsorship start dates and ensure the continuity of permission before making any decisions.
How the Changes Impact the Hospitality Sector
- A Sharp Reduction in the Talent Pool
With most hospitality industry roles removed from the list of eligible occupations and the new skill level set at RQF Level 6, businesses can no longer sponsor chefs, restaurant managers, or bar staff unless the individuals were already under sponsorship before the change. This will significantly shrink the pool of skilled international workers available to the hospitality industry.
- Transitional Protection for Existing Skilled Workers
For individuals already on a Skilled Worker visa or issued a CoS before 22 July 2025, sponsorship may continue, even for roles that are now ineligible, provided they meet the eligibility conditions. Employers can retain and re-sponsor such employees, but must be mindful of the applicable salary thresholds, depending on when the initial sponsorship began.
- Increased Financial Burden on Employers
The revised salary thresholds will drive up labour costs in an industry where margins are already tight. Employers may be forced to raise salaries to meet compliance, reconsider sponsorship altogether, or restructure roles to fit within the new guidelines. Further expected increases in the Immigration Skills Charge and possible changes to English language requirements could add to this financial pressure.
- Impact on Workforce Planning and Service Delivery
The removal of visa sponsorship for frontline hospitality industry roles could lead to operational disruptions, especially in areas with historically high reliance on migrant workers. Smaller businesses and rural establishments may be hit hardest, as domestic recruitment may not fill gaps quickly or efficiently enough to maintain service levels.
- Temporary Shortage List: No Relief for Hospitality
While a new Temporary Shortage List was introduced as a transitional mechanism, hospitality industry occupations were notably excluded. Roles such as HR officers, advertising associates, and sales executives made the list, but chefs, restaurant managers, and other critical hospitality roles did not. This omission signals a clear policy decision to restrict international recruitment in hospitality, despite longstanding staffing shortages.
Impact on Recruitment and Business Operations
The hospitality industry in the UK has long relied on international recruitment to address workforce gaps in both skilled and temporary roles. With over 132,000 vacancies reported in the industry as of mid-2025, removing key positions from the Skilled Worker route presents a serious challenge for employers.
The increased salary thresholds further restrict access to international labour, particularly for SMEs and regional operators who may struggle to meet the new pay requirements.
This shift is likely to cause:
- Increased reliance on the domestic workforce, even where shortages are pronounced.
- Greater pressure on retention and upskilling strategies for current employees.
- Delays or disruptions in service delivery due to longer recruitment timelines.
- Heightened operational costs in a sector already facing inflationary pressures.
Is This the End of Sponsorship in Hospitality?
While not a total ban, the new immigration rules have made Skilled Worker visa sponsorship unviable for most hospitality industry roles. The cumulative effect of higher skill thresholds, increased salary requirements, and the exclusion from the shortage list amounts to a de facto end of overseas sponsorship in the sector.
Employers who still wish to sponsor workers must act within narrow constraints and will likely face higher costs, reduced flexibility, and compliance burdens.
Exploring Alternatives: What Can Employers Do?
Despite the restrictions, there are several alternatives and transitional strategies that employers in the hospital industry can consider:
- Maximising Already Assigned CoS
Businesses that assigned Certificates of Sponsorship before 22 July can still onboard candidates under previous eligibility rules.
- Retaining Sponsored Talent
Employers should focus on retaining existing sponsored workers and exploring reskilling or career progression pathways for them.
- Exploring Alternative Visa Routes
Although less flexible, the following visa categories may be explored where applicable:
- Graduate Visa
- Student Visa (20 hours during term-time)
- Youth Mobility Scheme
- Dependent Visa routes
- Strengthening Local Recruitment
Given the long-term trajectory of immigration policy, investing in local workforce development, apprenticeship programmes, and employee upskilling will become crucial for business continuity.
Conclusion: Hospitality at a Policy Crossroads
The new immigration rules represent a critical turning point for the UK hospitality industry. While the government’s ambition to reduce immigration is clear, the reforms have introduced immediate operational challenges for an industry already under pressure.
Hospitality employers must now prioritise:
- Retaining and supporting their current workforce
- Investing in UK-based training and career development
- Reviewing their legal compliance with evolving sponsorship rules
As a sector that contributes over £70 billion to the UK economy annually, hospitality deserves a considered, long-term approach from policymakers. The success of these new immigration rules will ultimately depend on whether the government can bridge the gap between policy ambition and industry reality.
