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UK high street businesses still sponsoring foreign workers despite visa rule changes

Created at 6 Aug · 5:16 AM1 source↑ Market-relevant
IN SHORT

Despite tightened UK visa rules aimed at restricting sponsorship to graduate-level employees earning at least £41,700, over 1,900 small businesses, including car washes and vape shops, remain licensed to sponsor foreign workers. More than 100 were added after the rule changes.

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Key Numbers

1,900+small high street businesses licensed to sponsor foreign workers
£41,700minimum annual salary for skilled worker visas
1,500+grocery and convenience stores on the register
150taxi operators on the register
100+barber shops on the register
100+businesses added to the register after rule changes
3,299sponsorship licences revoked in 2025
347sponsorship licences revoked in 2023
60businesses fined for employing illegal workers
£2.5mcombined fines for employing illegal workers
68,067skilled worker visas granted in 12 months to March
29,745main applicants for skilled worker visas
38,322
dependants of skilled worker visa applicants

Who's Involved

Shabana Mahmood
Home Secretary who ordered a review into the sponsorship register
Dr Madeleine Sumption
Director of the University of Oxford's Migration Observatory
Toby Way
Lawyer at WestBridge Business Immigration
Joanna Hunt
Immigration lawyer at DAC Beachcroft
BBC Verify
Investigative unit that uncovered the findings
Home Office
UK government department responsible for immigration

↳ Why This Matters

The findings raise questions about the effectiveness of the UK's tightened visa rules for skilled workers, suggesting potential loopholes that allow businesses in sectors not typically associated with high-skilled roles to continue sponsoring foreign labor, potentially undermining the scheme's intended purpose.

Key facts

  • Over 1,900 small high street businesses, including vape shops and car washes, are licensed to sponsor foreign workers in the UK.
  • UK visa rules were tightened in July 2025, restricting sponsorship to graduate-level employees earning at least £41,700.
  • More than 100 businesses were added to the sponsorship register after the rule changes.
  • The Home Office has revoked thousands of sponsorship licenses, with 3,299 revoked in 2025.
  • Sixty businesses on the register had previously been fined for employing illegal workers.

Despite tightened UK visa rules implemented in July 2025, which aimed to restrict the skilled worker sponsorship scheme to graduate-level employees earning at least £41,700, a significant number of small high street businesses continue to hold licenses to sponsor foreign workers. BBC Verify found that over 1,900 businesses, including mini-marts, vape shops, and car washes, remain on the register.

More than 100 of these businesses were added to the skilled worker sponsorship list after the rule changes took effect. The register includes over 1,500 grocery and convenience stores, 150 taxi operators, and 100 barber shops. The Home Office stated that over 100 occupations are now ineligible for new skilled worker visas and that any businesses abusing the system would have their licenses revoked.

Home Secretary Shabana Mahmood initiated an urgent review into the presence of certain businesses on the register due to concerns about potential misuse. While being on the register does not guarantee visa approvals, it allows businesses to apply for foreign workers. Some companies may have applied before the rule changes, or their approvals predate the new regulations. The Home Office revoked 3,299 licenses in 2025, a substantial increase from 347 in 2023. Furthermore, 60 businesses on the register had been fined a combined £2.5 million for employing illegal workers.

Experts note that the rule changes have significantly impacted sectors like hotels and restaurants, which can no longer sponsor roles like chefs or managers. Lawyers suggest some businesses may attempt to sponsor roles in marketing or bookkeeping to circumvent the new restrictions. The Home Office now scrutinizes business finances to ensure they can meet the required salary thresholds. Immigration lawyer Joanna Hunt commented that it would be difficult for a typical high street shop to justify sponsorship at a degree level, as roles must align with the business type and meet skill requirements.

Frequently asked questions

The UK tightened its visa rules in July 2025, requiring skilled worker visa applicants to be graduate-level employees earning at least £41,700. Many non-graduate professions are now ineligible.

Despite the rule changes, over 1,900 small high street businesses, including mini-marts, vape shops, car washes, barber shops, and taxi operators, remain licensed to sponsor foreign workers.

More than 100 businesses were added to the skilled worker sponsorship list after the rules were tightened in July 2025.

The Home Office revoked 3,299 sponsorship licenses in 2025 and has stated that businesses found to be abusing the system will have their licenses revoked.

What Happens Next

01The Home Office is conducting an urgent review into businesses on the skilled worker sponsor register.
02The Home Office will revoke licenses of businesses found to be abusing the sponsorship system.
03Further scrutiny of business finances and job roles is expected for sponsorship applications.

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Cadence

How It Developed

Over 1,900 small high street businesses, including mini-marts, vape shops, and car washes, are licensed to sponsor foreign workers under a specialist scheme.
UK visa rules were tightened in July 2025 to primarily include graduate-level employees earning at least £41,700.
More than 1,500 grocery and convenience stores, 150 taxi operators, 100 barber shops, and dozens of car washes and vape shops remain on the sponsorship register.
Over 100 businesses were added to the register after the rule changes took effect.
Home Secretary Shabana Mahmood ordered a review into the presence of vape shops, barbers, and car washes on the register due to concerns over potential misuse.
The Home Office revoked 3,299 licences in 2025, compared to 347 in 2023.
Sixty businesses on the register had been fined a combined £2.5 million for employing illegal workers between April 2024 and December 2025.
A lawyer noted that hotels and restaurants may falsely claim needs for marketing or bookkeeping to sponsor roles no longer eligible under new rules.

Sources

T1
Car washes and vape shops can still sponsor skilled foreign workers despite UK visa changesBBC News

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