Labour has been accused of weakening protections for British workers after Treasury documents revealed plans to relax salary requirements for some overseas recruits, allowing employers to pay migrant staff less than the prevailing rate for their occupation.
The changes will lower the salary benchmark for selected roles from the median wage to the 25th percentile, potentially giving companies greater flexibility to recruit overseas workers at salaries closer to the minimum threshold of £41,700.
The Government argues that targeted adjustments can help employers fill vacancies and address recruitment pressures. But the proposals have prompted criticism from Conservatives, who say they risk encouraging businesses to import labour rather than train and recruit workers in Britain.
Chris Philp, the Conservative shadow home secretary, described the plans as a “sell-out of British workers”.
“Labour are slashing the salary bar so bosses can ship in cheap foreign labour instead of hiring and training people here,” he said.
He accused the Government of “throwing the border wide open” and argued that employers would be able to offer overseas recruits lower salaries than previously required for the same occupations.
The changes mark a shift from the rules introduced under the previous Conservative government, which raised the skilled-worker salary threshold to £38,700 before increasing it again to £41,700 in July 2025.
Under the previous arrangements, employers were generally required to meet both the overall salary threshold and the occupation-specific going rate. The new approach would reduce the benchmark for eligible roles, although the £41,700 general threshold remains an important minimum requirement.
The distinction is significant. Where an occupation’s median salary is above the minimum threshold, lowering the relevant benchmark could allow employers to recruit at a lower wage than would previously have been permitted.
Critics argue that this could weaken incentives for companies to improve pay, invest in training or address domestic skills shortages. The Government’s case is that a more flexible system will help businesses recruit for roles where suitable workers are difficult to find.
The Treasury’s proposals also include a change to post-study immigration arrangements, offering a longer period in Britain for graduates from selected universities.
Eligible graduates from institutions with strong labour-market outcomes will be able to remain in the UK on a two-year visa, reversing a planned reduction in the graduate visa period from two years to 18 months.
Hollie Chandler, director of strategic policy at the Russell Group, welcomed the decision, saying it recognised the contribution international students and graduates make to the British economy.
She said retaining the longer visa would help protect the UK’s reputation as a destination for international education and allow highly skilled graduates to contribute to the workforce.
The two changes reflect the competing pressures confronting ministers, as businesses want access to workers, universities want to retain international talent, while political opponents are demanding tighter controls on immigration and stronger protection for domestic employment.
The central question is whether greater flexibility will help address genuine skills shortages or make it easier for employers to avoid investing in British workers. The Government will face scrutiny over how it ensures the new system serves the labour market without weakening pay standards.
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