Bad news for Indian techies! New UK govt may tighten rules on overseas hiring

Britain's Home Secretary Yvette Cooper leaves Number 10 Downing Street in London.(AFP)

The new UK government has signalled its intent to curb overseas hiring by technology and engineering companies. Home secretary Yvette Cooper has asked the Migration Advisory Committee (MAC) to review these sectors’ reliance on skilled worker visas.

In a letter to the MAC Chair on Wednesday, Cooper said there is need to understand why certain key occupations depend heavily on international recruitment. She specifically pointed to information technology and telecommunications professionals, as well as engineering professionals, as sectors that have been among the top users of work visas.

Cooper said that while the government appreciates the contributions of workers from around the world, “but the system needs to be managed and controlled”. Cooper said the current high levels of international recruitment are unsustainable and reflect ongoing skills shortages in the UK.

System against national interest: Yvette Cooper

Yvette Cooper said that the government aims to reduce migration by aligning immigration with skills policy to create a fairer and more coherent approach to the labour market.

“The system as it exists is not operating in the national interest. This Government will deliver a fair, coherent, more joined up approach to the labour market by linking immigration with skills policy,” Cooper added.

Drop in UK Visa applications in recent time: Data

However, recent Home Office statistics reveal a significant decline in visa applications from students and skilled workers.

Since new restrictions on family dependents were implemented in recent months, applications have dropped sharply.

Home Office data shows that visa applications for main applicants and their dependents in key UK visa categories—Skilled Worker, Health and Care, and Study—fell by 35 percent, or 1,87,900, in the first seven months of 2024 compared to the same period last year.

“Immigration brings many benefits to the UK, but it must be controlled and delivered through a fair system,” a UK Home Office spokesperson said.

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