The number of work visas issued in the United Kingdom has fallen sharply, with newly released Home Office figures showing a significant decline in overseas recruitment following a series of immigration policy changes.
A total of 235,000 work visas, including visas issued to dependants, were granted in the year to June 2026. This was 18% lower than the previous year and 62% below the peak recorded in the year ending December 2023.
The latest figures show that 120,000 work visas were issued to main applicants during the 12 months, representing a 76% decline from the peak reached in the year ending December 2023.
The biggest reductions were recorded in the Health and Care Worker and Skilled Worker routes. Health and Care Worker visas, which have historically been heavily used by overseas care workers, fell by 90% compared with the 2023 peak, while Skilled Worker visas declined by 48%.
The fall follows a series of measures introduced by successive Conservative and Labour governments to reduce net migration and tighten eligibility for people seeking to work in the UK.
Restrictions introduced from late 2023 included higher salary thresholds for many work visa categories and limits on the ability of some foreign workers to bring dependants to Britain.
Further changes began taking effect in July 2025 following the Labour government’s immigration reforms, which were aimed at reducing lower-skilled migration and giving greater priority to highly skilled workers.
Despite the sharp decline in new work visas, the number of extensions granted under work routes remained relatively stable. Around 731,000 work-route extensions were recorded in the year to June 2026.
The Home Office said the high number of extensions partly reflects the large volume of entry-clearance visas granted in 2022 and 2023. Many of those visas are now reaching their expiry dates, requiring workers to apply for extensions if they wish to remain in the UK.
The latest figures also show a decline in international student migration. The UK granted around 383,000 sponsored study visas in the year to June 2026, 11% fewer than the previous year and 41% below the peak recorded in the year ending June 2023.
The decline was largely driven by a fall in applications from main student applicants, which dropped by 12% to around 366,000. Dependants remained broadly stable.
China and India remained the two largest nationalities among sponsored study visa recipients, accounting for around 46% of visas issued to main applicants.
At the same time, the number of people receiving permission to settle permanently in the UK increased. Around 200,000 settlement grants were issued in the year ending June 2026, representing a 24% increase compared with the previous year.
The increase was driven partly by people who had previously been on work routes and by individuals granted settlement after holding permission under the British National (Overseas) route.
There were also around 336,000 settled-status grants under the EU Settlement Scheme, with most continuing to go to people who previously held pre-settled status.
British citizenship grants remained high, with approximately 246,000 people receiving citizenship in the year to June 2026. This represented a 4% decline from the previous year but remained high compared with historical levels.
The figures also showed a reduction in asylum applications and small-boat arrivals. Around 86,000 people claimed asylum during the period, 21% fewer than the previous year, while small-boat arrivals fell by 23%.
However, immigration specialists have warned that the sharp reduction in work visas could create difficulties for employers already struggling to recruit staff.
Chetal Patel, head of immigration at Bates Wells, said the decline highlighted a tension between the government’s objective of reducing migration and the continuing need for international workers in sectors facing labour shortages.
Health and social care were among the sectors most affected, with employers having historically relied heavily on overseas recruitment to fill vacancies.
Patel also pointed to rising sponsorship costs and increasing compliance requirements for businesses. Employers are facing greater scrutiny from the Home Office, while information-sharing between government agencies such as HM Revenue and Customs and immigration authorities has increased.
From the perspective of overseas workers, she said the UK was becoming a less attractive destination because of restrictions on dependants, rising immigration costs and uncertainty surrounding future settlement rules.
She warned that a prolonged reduction in access to international talent could affect productivity, business expansion and innovation as the UK seeks to strengthen economic growth.
Ian Robinson, an immigration partner at Vialto, also raised concerns about salary thresholds, noting that requirements that may be manageable for employers in London can be more difficult for businesses operating in other parts of the country.
He said employers need greater certainty about the future immigration system so they can plan their workforces, invest in graduate talent and recruit highly skilled workers and their families.
Uncertainty over indefinite leave to remain (ILR) has also emerged as a major concern for employers and migrant workers.
Robinson said businesses remain unsure about whether and when proposed reforms to permanent residence will be implemented, particularly amid concerns that changes could potentially affect people already planning their route to settlement.
The latest figures therefore point to a significant transformation in the UK’s work migration system, with the number of new overseas workers entering through work visa routes falling substantially since the 2023 peak.