Home Office announces major fall in numbers of work visas issued

Newly released Home Office figures show there were 235,000 work visas granted (including dependants) in the year to June 2026, 18% fewer than the previous year and 62% fewer than in the year ending December 2023, when the number of work visas issued peaked.

The new statistics include 120,000 work visas issued in the latest year, 76% fewer than the peak in the year-ending December 2023. This fall was due to decreases in Health and Care Worker (primarily care workers) and Skilled Worker visas issued, down 90% and 48% respectively over this period.

The figures reflect the tighter restrictions imposed on immigration since 2023, reversing the impact of Boris Johnson’s government liberalisation of the system in the wake of Brexit and the ending of free movement from the continent.

The number of extensions granted on work routes remained broadly stable in the latest year at 731,000, following increases since 2021; the increases reflect the high number of entry clearance grants issued in 2022 and 2023, many of which are coming to an end and require an extension to remain in the UK.

There were 383,000 sponsored study visas grants in the year to June 2026, 11% less than the previous year, and 41% fewer than the peak in year ending June 2023. This fall, said the Home Office, was because there were fewer main applicants (down 12% to the previous year to 366,000), while dependants remained stable in the latest year. The top two nationalities were China (86,000) and India (83,000), who accounted for 46% of sponsored study visas issued to main applicants.

Salary thresholds

The falls in visa applications reflect the tighter rules introduced since late 2023 when Rishi Sunak’s government increased salary thresholds for many visas and restricted the numbers of applicants’ dependents could bring. Since then, Conservative and Labour governments have sought to reduce migration and tighten eligibility for work visas. The most recent changes began to take effect on 22 July 2025 after being announced in the Keir Starmer government’s Restoring Control over the Immigration System white paper.

About 200,000 settlement grants were issued in the year ending June 2026, 24% higher than in the year ending June 2025, an increase driven by more grants to individuals previously on work routes and those granted settlement after holding leave under the British National (Overseas) route.

Settled status

There were 336,000 grants of settled status under the EU Settlement Scheme June 2026, with volumes remaining broadly stable over the past three years; most grants continued to be issued to individuals previously holding pre-settled status.

There were also 246,000 British citizenship grants issued in the year to June 2026, 4% lower than the year to June 2025 – the Home Office said annual grant volumes remained high by comparison to historic volumes.

The University of Oxford’s Migration Observatory said the rise in citizenship applications was down to the increase in the share of non-EU migrants since Brexit.

As for asylum seekers, more often the subject of political debate in the UK than work-based immigration, the number of small boat arrivals was 23% lower than the previous year. About 86,000 people claimed asylum, 21% less than the previous year.

Labour shortages

Chetal Patel, head of immigration at Bates Wells, pointed out that employer demand was not the cause of the fall in numbers. She said: “While the government has made clear that it wants to reduce lower-skilled migration and prioritise highly skilled individuals who can support growth and the ambitions set out in the Industrial Strategy, these figures highlight the tension between reducing migration and addressing labour shortages. Many sectors continue to face recruitment challenges, particularly in health and social care, where employers have historically relied on international recruitment to fill workforce gaps.

Patel pointed out that sponsorship was increasingly for companies. She added: “The cost of sponsoring workers has increased substantially in recent years, compliance obligations have become more burdensome, and organisations are facing greater scrutiny from the Home Office. There is now greater intelligence-sharing across government agencies, including HMRC and the Home Office, meaning businesses are paying closer attention to sponsor compliance and risk management.”

Workers from overseas themselves were seeing the UK as less attractive as the result of the changes, she said: “From the migrant perspective, the UK is being viewed by some as a less attractive destination than it was previously. Restrictions on bringing dependants, rising immigration costs and uncertainty surrounding future reforms to settlement have all influenced decision-making for prospective applicants.

“The risk is that a sustained reduction in access to international talent could constrain productivity, slow business growth and limit innovation at a time when the UK is seeking to drive economic expansion and improve its international competitiveness.”

Ian Robinson, immigration partner at Vialto, pointed out that the salary thresholds that might work in London often did not work for other regions of the UK. He added: “Employers need confidence that the immigration system furthers long-term workforce planning, encourages investment in graduate talent, and provides clear pathways for highly skilled workers and their families.

He highlighted indefinite leave to remain as an area of prime concern. “Above all however, employers want clarity over what the government plans to do with policy. There continues to be uncertainty about if and when the government will follow through on its proposals for reforming indefinite leave to remain, but the looming possibility of a retrospective change to the rules – a change that would catch out many already planning for permanent residence in the next few years – is worrying employees and hampering their ability to make informed business decisions.”