British universities and employers are facing a double-edged challenge as the government’s immigration plans and new anti-fraud legislation threaten to reshape the landscape for international talent and student recruitment. On December 4, 2025, two major developments converged: a survey by Migrate UK revealed deep employer concerns over a proposed extension to the skilled worker visa settlement period, while the Global Education Recruitment Standards Authority (GERSA) warned that universities remain ill-prepared for sweeping new economic crime laws targeting fraud in international student recruitment.
For years, the United Kingdom has relied on a steady stream of skilled workers and international students to fuel its economy and research sector. But a government proposal to double the settlement period for skilled worker visa holders—from five to ten years—has left employers reeling. According to Migrate UK’s survey of 95 organizations, a staggering eight in ten believe the change will make it harder to attract overseas talent. Even more alarming, 92 percent of employers expect retention of skilled workers to fall, with many already seeing candidates consider moves to the EU or US instead.
“Current ILR rules already reflect earned settlement through continuous employment, English language proficiency and economic contribution. Extending this to a 10-year requirement will not solve workforce shortages, it will exacerbate them,” said Oliver O’Sullivan, director of immigration at Migrate UK, as reported by Migrate UK’s research. O’Sullivan also cast doubt on the Home Office’s data underpinning the proposal, noting, “The datasets in this report do not contain specific data on the number of people granted skilled worker visas in any year, just the number of people being granted them under a broad ‘worker’ category. Using this data it’s incredibly difficult to ascertain the number of people who have applied for a skilled worker visa in any given year.”
Employers warn that the consequences could be severe and far-reaching. Migrate UK calculated that sponsorship costs could soar by around 130 percent, reaching £17,480 for small organizations and £25,876 for larger employers—excluding dependants. For a skilled worker earning £41,700, this sponsorship cost would represent a jaw-dropping 62 percent of their annual salary. Unsurprisingly, only four percent of businesses surveyed said they could afford such increased costs.
Liz Sebag-Montefiore, CEO of talent consultancy 10Eighty, didn’t mince words about the likely fallout: “Doubling the timeframe would lead to increased turnover, rising recruitment and training costs, and difficulty sustaining long-term workforce planning.” She pointed out that shortage-hit sectors such as engineering, energy, science, health, and specialist tech roles would be hit hardest. Daniel Moczynski, head of HR for The NWH Group, echoed these concerns, warning that the plans could make the UK less competitive for top global talent: “The current five-year ILR route is a genuine golden ticket for attracting skilled people who are not available in the UK. If this pathway becomes longer, many candidates may choose other countries instead.”
Alan Lewis, employment partner at Constantine Law, urged employers to act fast: “Without certainty around settlement, workforce planning becomes far more complex.” He advised immediate role-by-role risk assessments to identify areas most exposed to potential rule changes. Meanwhile, HR leaders are being encouraged to review their employer value proposition and build stronger partnerships with international universities and professional networks.
But the uncertainty doesn’t stop at the workplace. The UK’s universities—long magnets for international students—are facing a different kind of risk. The Economic Crime and Corporate Transparency Act 2023 (ECCTA), which introduced a tough new corporate offence of failure to prevent fraud in September 2025, has put higher education institutions under the microscope. According to a White Paper released by GERSA, many universities and large colleges will fall under the act’s scope, yet awareness in the sector remains worryingly low.
The ECCTA holds organizations—including universities with turnover over £36 million or total assets over £18 million—criminally liable if an “associated person” commits a fraud offence intended to benefit the institution. The definition of ‘associated person’ is broad, encompassing third parties providing services on behalf of the organization, such as education agents paid to recruit international students. This is where things get tricky: British universities’ complex global student recruitment networks and heavy reliance on overseas agents create multiple touchpoints for potential fraud.
Fraudulent activities by unscrupulous education agents can range from falsifying student credentials and misrepresenting offers or visa eligibility, to financial crimes like tax evasion on commission payments. The risks are not theoretical. In July 2025, Indian authorities uncovered a ring of consultancy firms producing fake academic documents used to secure study visas to the US and UK—a stark reminder of the vulnerabilities in the system. The rise of sub-agent networks, where agents contract other agents rather than working directly with universities, has only increased the risk, as some institutions lose direct oversight of all their recruitment partners.
“There is both opportunity and incentive to commit fraud in the agent recruitment space at present, as it remains largely unregulated and offers large financial rewards,” said Birgit Hirst, chief commercial officer at GERSA, as quoted in the White Paper. “Therefore, various types of fraud are not uncommon and the impact is hugely detrimental to students, the education providers and the sector as a whole. The continued pressure on immigration numbers means the government also has an interest in clamping down on agent fraud contributing to illegal immigration.”
The penalties for breaching the ECCTA are steep: unlimited fines and potential regulatory scrutiny. To avoid liability, universities must prove they had “reasonable preventative procedures” in place at the time of any offence. GERSA recommends a suite of measures, including due diligence on agents, background checks, and targeted training for agents and sub-agents on fraud risk. But as Hirst pointed out, “ECCTA is relatively new legislation and many higher education institutions may not yet have fully digested or understood the potential impact on the sector. The initial soundings we have taken with sector organizations and a sample of institutions would suggest that awareness is still low among universities.”
For HR leaders and university administrators alike, the message is clear: open communication and proactive risk management are essential. Sarah Moyo, chief people officer at Thalia Waste Management, emphasized the importance of support: “People need to feel informed and supported. Open communication helps reduce anxiety during periods of change.” Moczynski suggested employers may need to consider contribution schemes or interest-free loans to help staff manage rising fees, while Sebag-Montefiore advocated for stronger links with international partners to keep talent pipelines flowing.
As the UK seeks to balance immigration control with economic growth and global competitiveness, the coming months will test the resilience and adaptability of its employers and universities. Whether these institutions can navigate the shifting legal and regulatory terrain—and continue to attract the world’s best and brightest—remains to be seen.