Skilled Worker Visa changes – impact on the seafood sector In December 2023, the then Prime Minister and Home Secretary announced plans to reduce net migration and resolve abuses of the UK immigration system.
The plan introduced proposed amendments to the operation of the Skilled Worker Visa (SWV) process. Last year Seafish published a series of SWV guides to provide a full overview of the legalities around the employment of migrant workers.
The plans announced at the end of 2023 will see changes made to the information previously provided.
These changes include:
- The minimum salary for recruiting a skilled worker from overseas on a SWV would increase from £26,200 to £38,700.
- The Shortage Occupation List (SOL) which allowed some job roles to be paid at a 20% reduction on the SWV rate, would be abolished in spring 2024. A new Immigration Salary Discount List (ISDL) will replace the SOL.
- The Migration Advisory Committee (MAC), an independent public body, was tasked with reviewing the roles that should be included on the ISDL and two fishing occupations were kept on the new ISDL list. This lowers the minimum salary threshold for these occupations to £30,960 for new SWV visa applicants, a discount of 20% on the new SKW rate.
- The minimum income threshold for a family visa, that is the amount a person must be earning before they can bring a family member or partner from abroad, increased from £18,700 to the £38,700 in line with the minimum SWV salary.
Previously, in October 2023, the UK Government had announced that the Immigration Health Surcharge (IHS) would also increase by 66% to £1,024 per annum which took effect on 6th February 2024. This directly increased the cost of the visa application process.
Collectively these changes will impact the businesses across the UK seafood supply chain.
In response to this change, Seafish has completed an Economic Impact Assessment using its existing fleet and processing data sets to assess the impact that the proposed increase to the Skilled Worker Visa (SWV) salary threshold could have on the UK seafood sector.
This analysis is underpinned by direct industry feedback collected by Seafish during late December 2023.
The seafood sector is heavily reliant on non-UK labour across both catching and processing sectors.
Any changes to the cost and complexity of accessing non-UK labour will have an impact on operating costs, and on business profitability and viability.
There will also be knock-on impacts to consumer prices, to the competitiveness of our export trade, and to businesses that support the seafood sector.
The impact assessment explores the impact upon the fleet, the processing sector, and collates evidence collected from the sectors. The assessment also considers potential amendments to the visa mechanisms. Finally, it provides models of the impact.
Image shows front covers of three Skilled Worker Visa guides
Seafish has completed an Economic Impact Assessment in response to changes relating to the Skilled Worker Visa process.
Key findings - catching sector
The fishing fleets most likely to be impacted by these changes, because a) they are reliant on non-UK labour and b) current average crew pay is below the proposed salary thresholds, are:
- The Nephrops fleet over 12m where currently 82% of vessels rely on non-UK crew and the average salary is £19,222.
- The demersal/beam trawl fleet over 12m where 52% of vessels rely on non-UK crew and the average salary is £34,266.
- The static gear fleet (e.g. crab potters) over 12m where 75% of vessels rely on non-UK crew and the average salary is £28,297.
The fleet most adversely affected by the policy change is the Nephrops fleet which could experience annual operating losses of between £41.5k and £83.5k per vessel, on average. Unless these losses are offset by increased prices, the changes could lead to vessel tie-ups and business closures, with a knock-on impact on scampi supply in the UK.
An assessment of the impact of the change on Nephrops prices indicates that to meet the revised salary of £38,700, the:
- Price paid per kg by processors/wholesalers to vessel operators would need to increase by 33%.
- Price that processors would charge retailers would need to increase by 14.5%.
- Price that processors would charge food service sector buyers would need to increase by 15.6%.
Enquiries on the SWV guidance process
Seafish has already published guides specifically tailored to seafood businesses, whether you are a fishing vessel, aquaculture business or a processing company, regardless of where you are based across the UK.
Sections of these guides are currently being edited to reflect the most recent changes but remain available on the Seafish website.
There are five guides and collectively these will help you to navigate the process to become a sponsor under the Skilled Worker Visa, to employ non-UK workers, and to meet your obligations as a sponsor and as an employer.
The guides to support you with the Skilled Worker Visa application process and to become a sponsor are available via the following link:
Employing workers from outside the UK
If you have any queries regarding the Skilled Worker Visa, or to request a copy of the Economic Impact Assessment, you can email SkilledWorkerVisa@seafish.co.uk.