Groups representing UK start-ups have written to the Home Office calling on the government to reconsider changes to the Skilled Worker Visa.
The Skilled Worker Visa allows workers to come to the UK if they work for an employer approved by the Home Office, have a certificate of sponsorship from that employer with information about the position, and hold a position that is on the list of eligible occupations. . .
However, they must also be paid a minimum wage, which has been increased, raising concerns that the changes could create challenges for organizations looking for talent abroad.
“It is time to turn off the taps and put an end to the flow of cheap workers from abroad. Mass migration is unsustainable and simply not fair. It undermines the wages of hardworking people who are just trying to make ends meet,” said the minister of Inside. James cleverly last week.
“We are refocusing our immigration system to prioritize the brightest and best who have the skills our economy needs, while reducing the overall numbers.”
Two pressure groups, Startup Coalition and Entrepreneurs Network, are now calling on the government to reconsider the measure.
Salaries were previously set at the 25th percentile for Annual Hours and Earnings Survey data, but have now been raised to the 50th percentile. This means that a startup hiring a software engineer will now be required to pay a minimum salary of £51,000 if you decide to employ a non-British citizen, the groups said.
“The ability to meet these new wage requirements may not be feasible for startups that cannot always pay their workers high wages up front.”
Many startups offer early-stage employees stakes in their businesses as part of their compensation packages, reducing the salary element, which can then fall below the threshold.
“Startups need staff with the right skills to develop and execute innovative ideas. They are also often competing with larger, established companies for talent; however, these changes could cause dynamic startups to lose the skills they need, while that the established technology giants will not be hindered by them,” the letter reads.
“Startups based outside London, where data shows tech salaries are lower, will be disproportionately affected by these changes.”
The groups are calling on the government to amend the requirements so that equity can be counted in the wage requirements for the Skilled Worker Visa. This, they said, would give a more accurate reflection of an employee's total compensation package and ensure that startups are not unfairly disadvantaged in accessing talent.
