Great news for Indians! British citizens and permanent residents will no longer need to earn a minimum of Rs 41.5 lakh annually to sponsor family members to the UK. The new Labour Party government has scrapped the planned increase in the minimum income threshold. This change, initially proposed by former Prime Minister Rishi Sunak to curb record immigration numbers, would have significantly affected many Indian families.

No immediate alterations

UK Home Secretary Yvette Cooper informed the House of Commons that the current annual income requirement of £29,000 (approximately Rs 31,16,757) will remain unchanged until the Migration Advisory Committee (MAC) reviews the impact of these increases on families. In a written statement, Cooper said, “The family immigration rules, including the minimum income requirement, must balance respect for family life with ensuring the UK’s economic well being.”

The MAC has also been assigned to evaluate the dependence of critical sectors on international recruitment, with a particular focus on IT and engineering, which heavily depend on talent from countries like India. “As an initial step, I am directing the MAC to assess the reliance of key sectors on international recruitment, especially in IT and engineering,” Cooper stated.

In December of last year, as part of a broader set of measures to reduce migration, the Conservative government led by then-Prime Minister Rishi Sunak announced that starting in April, the minimum salary or income required for British nationals to sponsor long-term Family Visas for spouses or parents would increase from GBP 18,600 to GBP 29,000, with further increments planned to GBP 38,700, aligning with the minimum income requirement for the Skilled Worker Visa route.

The proposed increase had sparked concerns among analysts regarding its potential effects on lower-income families. Simran Brar, Partner at Karanjawala & Co, highlighted the difference between the UK’s strict policies and the more lenient rules in countries such as the USA, Canada, and Australia. “For instance, students with F-1 visas in the US can apply for F-2 visas for their dependents (spouse and children). Similarly, Canada and Australia permit international graduates to work for 2 to 4 years after graduation,” Brar noted.

Aritra Ghosal, Founder and Director of OneStep Global, emphasized the need to consider the wider effects of such policies. “International students contribute substantially to revenue through tuition fees, which not only help expand course offerings but also address funding gaps in domestic student and research programs,” Ghosal remarked. He also highlighted that international students offer a valuable short-term labor supply for UK businesses and called for a balanced approach that fosters both economic growth and support for the education sector.

Indians among leading visa sponsors

UK Home Office statistics reveal that Indians constituted the second-largest group for Family Visas in 2023, with 5,248 visas issued, trailing only behind Pakistanis and surpassing Bangladeshis.

Ongoing visa restrictions under the Tory government

The new Labour government has maintained several visa restrictions from the previous Tory administration, including those affecting overseas students and care workers bringing family dependents. Cooper emphasized the need to safeguard the immigration system from misuse while recognizing the economic and academic benefits of international students.

Effects on dependents of students

According to a government press release from May, there has been an 80% decrease in the number of dependents accompanying students to the UK, with over 26,000 fewer student visa applications submitted from January to March compared to the same period in 2023.

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