More than 1,900 small high street businesses in the UK, including mini-marts, vape shops, car washes, and barber shops, remain on the government's skilled worker sponsorship register despite rule changes introduced in July 2025 that were designed to restrict the scheme to graduate-level, higher-earning workers, according to an investigation by BBC Verify.
Background of the Skilled Worker Scheme
The skilled worker scheme was established after Brexit to allow UK employers to recruit overseas workers once EU free movement ended. Until July last year, businesses could sponsor workers with qualifications equivalent to A-Level standard, provided they were paid at least £38,700. However, the rules were tightened so that most sponsored roles now require degree-level qualifications and a minimum salary of £41,700. Non-graduate professions such as shop managers are no longer eligible.
BBC Verify Investigation Findings
BBC Verify matched business names and locations against Companies House records and Google listings to identify the types of firms still holding licences. The analysis found more than 1,500 grocery and convenience stores, roughly 150 taxi operators, over 100 barber shops, and dozens of car washes and vape shops still on the register. Around 1,700 of the businesses identified were based in England, more than 140 in Scotland, over 80 in Wales, and just two in Northern Ireland.
More than 100 of those businesses were added to the register after the July 2025 rule changes took effect, though the Home Office noted that some may have applied before the new rules came into force. Separately, BBC Verify found 60 businesses on the register that had been fined for employing illegal workers between April 2024 and December 2025, with combined fines totalling £2.5 million.
Government Response and Expert Warnings
Home Secretary Shabana Mahmood ordered an urgent review into the presence of vape shops, barbers and car washes on the register two months ago, citing concerns over "potential misuse of the system." Health Secretary Yvette Cooper said on Thursday the government will "make sure that the rules are being properly enforced because we cannot have employers getting round the rules or finding different ways to deviate."
A Home Office spokesperson said: "We have raised the skilled worker threshold and over 100 occupations are now ineligible for new skilled worker visas." The spokesperson added that businesses facing two or more illegal working penalties, or failing to pay a penalty at the first instance, would have their licences revoked. The Home Office revoked 3,299 licences in 2025, up sharply from 347 in 2023.
Expert Analysis and Impact
Dr Madeleine Sumption, director of the University of Oxford's Migration Observatory, said businesses already on the register before the rule changes can continue sponsoring workers already in the UK, but "they can't now bring in a new person to do those jobs." Immigration lawyer Joanna Hunt of DAC Beachcroft said high street shops would struggle to justify sponsorship at degree level, adding: "A high street shop may find this requirement difficult to demonstrate."
The Home Office said 68,067 skilled worker visas were granted in the 12 months to March 2026, which is 30% lower than the previous year. This significant drop suggests the stricter rules are having an effect, but the continued presence of these small businesses on the register raises questions about enforcement and potential loopholes.
Related Developments
In a related development, Canada has identified eight high-growth companies that can hire eligible foreign professionals, including Nigerians, through a special work permit pathway that does not require a Labour Market Impact Assessment (LMIA), making it easier for skilled workers to secure employment in the country. The companies are part of Canada's Global Hypergrowth Project (GHP), an initiative aimed at helping innovative businesses attract global talent while supporting their rapid expansion.
