Groups representing UK start-ups have written to the Home Office, calling on the government to reconsider changes to skilled worker visas.
On a skilled worker visa, a worker works for an employer approved by the Home Office, has a sponsorship certificate from that employer with information about the role, and performs a role on the list of eligible occupations. will be allowed to come to the UK. .
However, they must also pay a minimum wage, which has been increased, raising concerns that the changes will create challenges for organizations seeking overseas talent.
“It’s time to turn off the taps and put an end to the influx of low-wage workers from overseas. Mass immigration is unsustainable and totally unfair. It will cut people’s wages,” the Home Secretary said. James Cleverley last week.
“We are rethinking our immigration system to prioritize the brightest and brightest with the skills our economy needs, while reducing overall numbers.”
Two lobby groups, the Startup Coalition and Entrepreneurs Network, are now calling on the government to reconsider this move.
Salaries were previously set at the 25th percentile in the Annual Work Hours and Earnings Survey data, but have now been raised to the 50th percentile. This means start-ups hiring software engineers will have to pay a minimum salary of £51,000 if they choose to employ non-UK nationals, the group said.
“The ability to meet these new salary requirements may not be feasible for early-stage startups that are unable to consistently pay employees well from the beginning.”
Many start-up companies offer early-stage employees equity in their business as part of their compensation package, reducing the salary component, but in this case, the amount of pay may be below par.
“Start-up companies need staff with the right skills to develop and execute innovative ideas. They also compete for talent with larger, more established companies. As is often the case, these changes may cause dynamic startups to miss out on needed skills, while established technology giants will not be constrained by them,” the letter reads. .
“Start-up companies based outside of London will be disproportionately affected by these changes, as data shows that tech salaries are lower.”
The group is calling on the government to tweak salary requirements for skilled worker visas to ensure fairness is taken into account. They said this would more accurately reflect total employee remuneration and ensure startups would not be placed at an unfair disadvantage in attracting talent.
