Cheap foreign labour will no longer be an option for British companies, James Cleverly has said as new salary thresholds for skilled workers come in.

The Home Secretary said it was “time for employers to play their part” in investing in and recruiting British workers as the Government sought to reduce record levels of net migration.

His comments came as the salary threshold for foreign skilled workers to be allowed to work in the UK increases from £26,200 to £38,700.

It is one of a series of measures designed to reduce net migration by 300,000 after a record high of 745,000 in 2022.

Also taking effect on Thursday is the abolition of the shortage occupation list under which foreign workers can be recruited at 80 per cent below the job’s usual going rate.

Care workers have also been barred from bringing dependants to the UK, as have foreign students apart from postgraduates working on major research projects.

Fruit packers weigh and prepare produce. In future, cheap foreign labour undercutting wages will no longer be an option Credit: Kelvin Murray/Stone RF

“Our ambition, for a more productive economy supported by highly skilled and well-paid workers, cannot rely on immigration,” said Mr Cleverly.

“Last year, I announced a comprehensive package of measures that will lead to a fairer immigration system and see a radical reduction in the numbers arriving into the UK. 

“Under this plan, 300,000 people arriving last year would now not be able to. We’ve already worked at great speed to deliver most of that plan and today we’re going even further.

“Businesses must invest in, and recruit, British workers first and foremost. It’s time for employers to play their part - we have taken action to protect the prospects of workers here at home and prioritise only the very best and high-skilled talent from abroad. 

James Cleverly says businesses must invest in and recruit British workers Credit: Gareth Fuller/PA

“Cheap foreign labour that undercuts wages will no longer be an option.

“Immigration brings many benefits, but it must be sustainable and work in the British people’s interests. 

“The Prime Minister and I are determined to deliver the necessary change to ensure it will.”

The shortage of occupations will be replaced by a new immigration salary list which has been created, following advice by the independent migration advisory committee.

Roles on the list will only be included where they are skilled and in shortage, and if it is sensible to include them considering the efforts being made by sectors to invest in the resident workforce.

Inclusion on the list must not serve to reduce pay and undermine the recruitment of British workers.

Employers are encouraged to invest in training, upskilling, and hiring domestic workers first.

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