Linda Van Tillberg (00:01)
The UK government has strengthened immigration rules, raised pay thresholds and reduced lists of eligible occupations. What does this mean that South Africans are about to start a business or move to the UK? Saskia Johnston, immigration specialist at Sable International, joins us and breaks it down. Hello, Saskia, I'm happy to meet you again.
With the clampdown of immigrants, how can people trying to relocate can find a way to do that?
Saskia Johnston (01:22)
Recently, migrants have been used by multiple political parties as a tool to curb net immigration, and it is clear that reducing net mobility is a priority, regardless of which party is in power. That being said, there are still several routes offered by UK home offices. I think people need to take a closer look at immigration laws to understand what is useful for a particular situation and business.
Linda Van Tillberg (01:57)
Which routes are still open?
Saskia Johnston (01:59)
One of the routes we are extremely excited about is the UK Extended Workers Route. Technically, it has been in effect since April 2022, but when it first launched, it was not particularly well managed, and as a new route, the requirements were still being developed by the Ministry of Home Affairs.
Since routes have been around for a few years, it is much easier to see their purpose, and the application process is more streamlined. Non-UK Businesses – Give foreign companies an exciting opportunity to expand their UK businesses to the UK without prioritizing them from a logistics perspective.
Linda Van Tillberg (02:46)
Which industry is best for this?
Saskia Johnston (02:49)
It's industry-independent. This means that businesses in any sector can potentially use it. The key requirement is that the business is an international entity that will establish, operate and work well in its own country. For BizNews audiences, it primarily means that South African companies are about to expand into the UK market. Due to the ongoing lack of skills in the UK, we have seen a variety of companies using this, including engineering companies in the architecture and trade sector, high-tech companies, businesses, and other areas where employers in the UK still struggle to find sufficient skilled workers.
Linda Van Tillberg (03:37)
What can I do with the UK Extended Workers Visa?
Saskia Johnston (03:43)
The UK Extended Worker Visa requires an Extended Worker Sponsorship License. It essentially means that the Home Office will do due diligence against foreign companies and determine whether they are eligible to sponsor UK workers.
This license allows businesses to deploy up to five UK expansion workers. Therefore, up to five representatives from foreign companies can travel to the UK with the aim of establishing a business. They can work for UK entities or continue to be employed by foreign companies while establishing UK businesses.
After a UK business is fully operational, typically about six months later – the company can consider upgrading its license to a fully skilled worker visa sponsorship license. This allows businesses to deploy additional personnel from overseas operations to UK entities.
Linda Van Tillberg (04:42)
So, what is the reason given to them by the companies, why do they still want to move to the UK?
Saskia Johnston (04:50)
Despite all the changes in the political landscape over the past few years, the UK remains a major European hub. For South African companies looking to expand, the lack of language barriers in the UK makes things easier, while the ongoing lack of skills means foreign companies that can backfill resources have a real advantage in the recruitment market.
This advantage makes them softer faster on larger projects. There, local recruiting cannot provide the right skills quickly enough. And the ability to earn money with sterling on pounds is definitely attractive, especially for South African businesses – it helps hedge against the volatility of land-based businesses.
Linda Van Tillberg (05:41)
So is currency stability one of the main reasons?
Saskia Johnston (05:40)
Yes, that's very true.
Linda Van Tillberg (05:47)
Which skills is the UK looking for now?
Saskia Johnston (06:05)
The list is still wide. Keir Starmer's recent whitepaper shortens the job list for sponsoring skills, but for highly skilled immigrants there are still viable occupation codes. For example, engineers are in very high demand, and one area where South African experts have a particular edge is fire engineering. Since the Grenfell tragedy, UK fire safety regulations have changed dramatically, with South African fire departments meeting many of the new requirements.
Broadly speaking, skilled immigrants who find expertise in the UK have viable paths to travel under this system.
Linda Van Tillberg (06:06)
What skills does the UK look for as restrictions like caregivers can no longer bring families?
Saskia Johnston (06:07)
The sponsorship skills occupation list has been shrinking, but engineers, particularly highly skilled roles like the South African fire department, are in high demand as post-Grenfell UK fire safety regulations have been updated. Skilled immigrants with expertise that are difficult to find in the UK can still find opportunities.
Linda Van Tillberg (07:03.018)
So, what should an entrepreneur do? How should they position themselves for this?
Saskia Johnston (07:09.739)
I think the first step is market research – look at the UK market and assess whether their business plays a competitive role. Once they analyze the business plan and forecast the first few years, they can consider obtaining an expanded worker license and relocated staff in the UK.
The advantage of this route is that in terms of the UK existence, everything that South Africa or foreign businesses need to do is incorporate British entities. No additional logistic setup is required to make the route executable. All Home Affairs Department due diligence is based on foreign entities. For example, if you are a South African business, consider the company's website, tax returns and financial records to assess feasibility before granting an expanded worker license.
Linda Van Tillberg (08:05.227)
What strategies have helped previous companies succeed in expanding their markets?
Saskia Johnston (08:09.357)
The first step is to assess whether there is actual space for business in the UK market. There are many ambitious South African entrepreneurs with innovative products and services that don't exist yet in the UK. These companies often expand rapidly once they enter the market. If they can leverage immigrants and international workers, it gives them a great competitive edge, especially in industries where local skills are lacking.
Linda Van Tillberg (08:41.707)
How will it affect businesses when the government announces immigration changes? Are they in a hurry to act before the rules get even stronger?
Saskia Johnston (08:55.693)
These changes have made them quite difficult for very small businesses, microenterprises, or startups that have not been run for a long time. What we see is a shift – in the past, small businesses had the flexibility to expand into the UK, but now they focus on more established foreign companies. It is much more likely that they will secure a footprint in the UK market, employ local talent and run sustainable operations. The reality is that these reforms make it much more difficult for newer, smaller entities.
Linda Van Tillberg (09:37.023)
Do these reforms support early initiators, or should we expect more confusion?
Saskia Johnston (09:43.894)
The immigration situation is constantly evolving, and goal posts continue to shift. The released white paper needs to be discussed before it becomes law, but we can absolutely hope for more immigration reform in the UK over the next few years.
At this point, this route is one of the most viable options for foreign companies looking to expand to the UK. It offers a great opportunity for entrepreneurs who want to take the next step in their global business strategy.
Linda Van Tillberg (10:21.984)
Let's talk about the UK's skill gap. I spoke to an entrepreneur who says he's having trouble finding workers – if you move a big restaurant, for example, is staffing an issue? Can South Africans benefit from this shortage?
Saskia Johnston (10:44.429)
Yes from 2021 until June last year. Post-Brexit Home Office expanded its list of occupations eligible for sponsorship, particularly in hospitality. The roles of chefs, hospitality managers, bar managers and more may all be sponsored. However, the UK government is currently tightening restrictions and is returning to its pre-2021 immigration approach. Companies must now prove to the Home Ministry that appropriate candidates are not available locally before sponsoring foreign workers. It is expected that the resident labor market test, which existed by January 2021, will return. This has not yet been implemented, but is expected to recover.
For businesses struggling to recruit in the UK, sponsoring workers under skilled workers visas is still possible, but they need to act promptly before additional reforms are passed. Employers should also indicate that they have attempted a local recruitment first.
Additionally, the Home Office is considering implementing training programs for businesses in the UK. For example, a South African restaurant that brings in two sponsored chefs might need to hire and train a local chef as part of the process. This is not a law yet, but we expect it to be a future requirement.
Linda Van Tillberg (12:23.048)
How about care workers? There are many South African caregivers in the UK – what are their positions under the new rules?
Saskia Johnston (12:29.037)
The care sector has been under intense scrutiny over the past year. Unfortunately, between 2021 and 2024, the route was widely abused. Many companies went through a sponsorship process for care workers, but it was not a legitimate job.
As a result, the UK was visited by many displaced people who arrived under a sponsorship programme that no longer existed. Rather than bringing in new foreign workers, the Home Office is trying to direct UK employers to employment from this pool of displaced people. I don't think the government will reverse its stance on this – there are no indications that this route will be freely reopened between 2021 and 2024.
Linda Van Tillberg (13:35.368)
What are your main advice for entrepreneurs considering moving to the UK?
Saskia Johnston (13:39.149)
Explore the market. Companies using this route are thriving their UK operations and enjoying the benefits of making money with pound sterling. This route offers a great opportunity to hedge your business's revenue portfolio with hard currency. But once immigration is tightened, foreign entrepreneurs should seize the opportunity right now before further restrictions appear.
