Government has unveiled its latest plans in addressing immigration, which include ending overseas recruitment by 2028 and instead focusing on domestic recruitment, as part of its plan to make the system more ‘controlled, selective and fair’. However, this decision could accelerate the recruitment crisis that many social care providers are already experiencing. The sector could face major operational, regulatory and safety consequences unless swift and meaningful action and planning is undertaken.
A reliance on overseas workers
Overseas workers are a key supplement to the domestic health and social care workforce and the last Government had actively encouraged its growth. A key reason for this is that recruiting domestically has become more challenging, particularly in remote or affluent areas where there are not enough people interested in working in the sector. Even when care providers do not directly sponsor overseas workers, they often still employ them in a supplementary capacity. This is possible because sponsored workers are permitted to take on additional employment of up to 20 hours per week with an employer who is not their primary sponsor. The change in policy seems to ignore the positive impact of overseas workers in the sector and instead plays to wider concerns about immigration numbers.
Whilst providers may not feel the immediate impact of the immigration curb as there are still many overseas workers lawfully present in the UK, it is only a matter of time before the proposed changes start to have a negative effect. As new restrictions are imposed for employers looking to recruit overseas staff, care providers could struggle to fill vacancies and lack the resources needed to provide care services to vulnerable people. Reducing access to overseas workers will place additional pressure on existing staff and drive up risk. The added strain could drive existing care workers to leave the sector, creating a damaging cycle that could force providers into a position where they are no longer able to operate.
Promising ideas, but they cannot come soon enough
Care work can be extremely demanding, both mentally and physically, and currently staff in the sector receive less pay than many low-paid workers in other sectors. To counteract the loss of overseas workers and to encourage more domestic workers into social care, Government has proposed the Fair Pay Agreement (FPA), along with improved working conditions. The FPA would be negotiated between the representatives of employees in the sector and their employers. It would aim to establish baseline pay, conditions and benefits for all care workers, regardless of their employer. This is a much-needed initiative and could go a long way in making care work more attractive to domestic workers if the Government is prepared to put the necessary funding behind these improved terms.
In any event, the new immigration plans are likely to take effect well before any meaningful changes to working conditions are put in place. The FPA is not expected to be fully implemented until 2028, whereas restrictions on overseas recruitment are being rolled out now, and the option for care workers to apply for the health and care worker visa is expected to end by 2028. Another factor that plays into the rollout of the FPA is funding as the social care sector is predominantly funded publicly. In 2022-2023, total expenditure on adult social care in England was £35.3bn, with 69% of that being publicly funded.
The FPA will require enormous investment and, as things stand, it is uncertain where this money will come from, particularly as Government has not already committed to further tax increases. The Fabian Society has recently published a report suggesting an extra £2bn needs to be invested in the social care workforce. Even if the necessary funds are secured, the FPA is not going to come in before the immigration changes take effect and, by then, it could be too late. If Government wants to implement plans without negatively impacting the social care sector, reforms need to come before immigration changes, not the other way around.
Increasing risks for providers
There are several risk factors that come into play for care providers following the announcement of the planned curb on immigration, and some are more nuanced than others. For example, even though staffing will be widely affected, ending overseas recruitment will not be felt evenly across the sector and there could be varying degrees of risk for providers – for example, geography could play a huge part. Whilst providers in major conurbations will have a larger pool of domestic candidates to draw upon, the biggest challenges will be faced by those in rural areas or places where fewer low-paid workers reside. Providers in these locations will find it particularly difficult to replace overseas staff with domestic workers, especially where local employment markets are limited or where other industries are offering higher wages and better conditions.
The uneven impact of the immigration curb could also bring legal and operational risks. As staffing shortages grow, the burden on remaining employees could increase, making errors and burnout more likely. This could lead providers to fail in their duty of care to employees and place them at increased risk of breaching CQC regulations and health and safety laws. If staff stress levels increase due to a lack of resources, more employees could leave, making staff shortages worse. As complaints rise and staff morale falls, the sector could see a spike in employment tribunal claims and further damage to already stretched services. With little clarity from Government and no immediate relief in sight, it is important that providers know what they can do now to ease some of the challenges that could arise with the new immigration plans.
Making a valuable contribution
Not only is the immigration curb putting vulnerable people at risk, but the hard work of overseas care workers is being completely overlooked and unrecognised in terms of the wider contribution it makes to the social care system. Overseas workers pay taxes but are generally ineligible to claim benefits, which means they are likely to place little financial strain on public finances. Additionally, they are frequently praised by providers for their work ethic, dedication and reliability. Despite this, the policy changes being made appear to disregard the economic and social value contribution that overseas workers make.
There is a great deal of uncertainty surrounding the future of existing overseas workers. Government has indicated plans to extend the qualification period for Indefinite Leave to Remain (ILR) from five to 10 years. If combined with the proposed 2028 cut-off for sponsorship, this change could force many existing overseas care workers to leave the country, including those who are currently well settled and in employment.
What can providers do now?
There are things that care providers can do to mitigate potential disruption. They should start by assessing exactly how reliant they are on overseas workers and what percentage of their total workforce they currently represent, to determine the potential impact. This is likely to vary significantly and having a clear picture will help individual providers to prepare for operational and staffing risks.
Providers should also conduct a thorough audit of visa expiry dates for current overseas staff. If any are nearing expiry, they may still be eligible for renewal or extension under existing rules and could help maintain workforce continuity in the short term. Beyond immediate visa management, providers need to review their current domestic recruitment strategies. This includes reviewing their offer to UK workers – not just in terms of pay, which remains the most significant barrier to recruitment, but also working conditions, flexibility and non-salary benefits.
Given the additional stress that staffing shortages can place on teams, legal risk exposure should also be reviewed. If staff are under more pressure due to a lack of resources, they are more likely to make mistakes, leading to an increased risk of liability. Providers should ensure their HR practices, training systems and compliance protocols are robust enough to cope with all kinds of workforce instability.
For all providers, the immigration curb is out of their hands, so a proactive approach to risk management is essential. While the full impact of immigration changes could take time to materialise, there is a window of opportunity to ensure that providers are prepared. Without urgent Government investment and an immediate reversal – or at least a delay – to the introduction of immigration restrictions, some providers are likely to exit the market. It will be a challenging time, but care providers and sector bodies must not be afraid to raise their voices to flag concerns or they could be left to manage a resourcing crisis without any prospect of support.
First and foremost, the immigration curb will affect the vulnerable people in their care, so providers must take a proactive approach and share their concerns. Speaking out and forcing policymakers to take note will be the best way to protect care workers and ensure the continuity of vital services.
What impact do you see the new immigration laws having on your workplace? Leave a comment on this feature or join the conversation to share your thoughts.
Hazel Findlay is an Associate and Matthew Wort is a Senior Partner, both members of the Employment Law team at Anthony Collins.
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