Immigration: Scaling up for growth

In August 2022, the “Scale-up Worker Visa” was announced. It is part of the UK Government’s Innovation Strategy, which is to make the country a global hub for innovation. The hope is that it will boost investment in the UK’s private sector and bring economic prosperity following both Brexit and the COVID-19 pandemic. This visa route will enable high-growth businesses to employ highly skilled individuals who have the ability to help the business to continue growing.

What is a scale-up business?

In order for a UK business to qualify as a scale-up sponsor under this route, the business will need to demonstrate that it has had an average growth of 20% annually for the last three years in terms of turnover or employment. Businesses will also be required to have at least 10 employees at the start of the qualifying three-year period. Businesses will need to apply for the new scale-up licence in order to sponsor individuals under this route. There is also an exemption from the immigration skills charge which is payable on other similar visas. Therefore, this licence is somewhat more attractive to eligible businesses as it can prove more cost-effective.

What workers qualify?

To qualify as a scale-up worker, an individual must have an offer of employment from a scale-up UK business, and that job must be skilled to Regulation Qualification Framework (“RQF”) 6 or equivalent. Therefore, the applicant must be sponsored for a job listed in the Appendix Skilled Occupations. In terms of salary requirements, the applicant must be paid a minimum of £33,000 per year or the Appendix rate for the occupation code under which they are applying, whichever is the higher amount. Scale-up workers must meet the English language requirement as well as the financial requirement if they have been in the UK for less than 12 months. 

Those eligible under this route can also bring their partner and children as dependants. If an individual makes a successful sponsored application, they will be granted entry clearance or permission to stay for two years. An unsponsored applicant will be permitted entry clearance or permission to stay for three years. This is a route to settlement after five years for applicants and their dependants.

How does this differ from the skilled worker route?

As standard, both routes require applicants to meet the English language as well as the financial requirements, although in both cases the sponsor can assist with maintaining and accommodating the applicant to an amount up to the requirement of £1,270.

However, there are a number of differences between the skilled worker and scale-up worker routes. In order to qualify on the skilled worker route, there is a requirement for the position to meet RQF 3 or equivalent. Turning next to the salary conditions, the minimum flat rate is lower for a skilled worker, at £25,600. Further, it is not possible to reduce the minimum salary requirement on the scale-up route to allow for positions on the shortage occupation list.

The key difference between the two routes, however, is that the scale-up visa offers the individual two years’ leave to remain in the UK, with only six months’ sponsorship. This offers applicants more flexibility and it is hoped that it will encourage highly skilled individuals to remain working in the UK. Workers will also be able to swap to an employer without sponsorship at the end of the initial six months, becoming an unsponsored worker. This will allow businesses that do not hold sponsorship licences to employ workers whom they would be unable to recruit from abroad. The short sponsorship, coupled with the lack of immigration skills charge, also means that it will be more financially viable for businesses to employ skilled workers.

The UK Government has noted the importance of “scaling up”, and is keen to encourage businesses to continue growing, which will in turn boost the economy. The intention is that the scale-up route will offer businesses and applicants more flexibility while working alongside both the skilled worker and global business mobility visa options. Although it is likely that the skilled worker route will remain the most popular, the scale-up visa is a welcome addition to the growing number of options for businesses looking to employ workers from outside the UK.