UK Shortage Occupation List (SOL): What Employers Need to Know

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The UK Shortage Occupation List (SOL) was a key part of the points-based immigration system, giving employers access to overseas workers in roles where domestic labour was scarce. In April 2024, the SOL was replaced by the Immigration Salary List (ISL), and further changes are expected in 2026 with the introduction of a Temporary Shortage List. This guide explains what happened to the SOL, what the current rules mean for Skilled Worker visa applications, and what employers should prepare for next.

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Key Takeaways

Essential Points for Employers

• The UK Shortage Occupation List was abolished in April 2024 and replaced by the Immigration Salary List.
• The 20% salary discount that applied to shortage occupations no longer exists under the ISL.
• A new Temporary Shortage List is expected to be introduced in 2026 following a Migration Advisory Committee review.
• Employers sponsoring Skilled Worker visa applicants must now meet the full going rate for the relevant occupation code.
• Understanding which occupation codes apply to your roles is critical for compliance and cost planning.

What Was the UK Shortage Occupation List?

The Shortage Occupation List was a list of jobs identified by the Migration Advisory Committee (MAC) as having a shortage of suitable workers in the UK. Roles on the list benefited from a lower salary threshold - workers could be paid 80% of the going rate for their occupation code, making it easier and cheaper for employers to recruit internationally.

The list covered a wide range of roles across sectors including health and social care, engineering, construction, IT and education. It was reviewed periodically by the MAC, which advised the government on which occupations to include or remove based on labour market evidence.

Why Was the Shortage Occupation List Abolished?

Following recommendations from the MAC, the government decided to remove the SOL and its associated salary discount in April 2024 as part of a broader effort to reduce net migration and encourage employers to recruit and train domestic workers first.

The MAC's review found that the discount was being used extensively across many sectors and was contributing to wage suppression in some industries. The government accepted the recommendation to scrap the 20% discount and replace the SOL with a simpler list that no longer carries a salary reduction benefit.

The Immigration Salary List: What Replaced the SOL?

What Is the Immigration Salary List?

The Immigration Salary List (ISL) was introduced in April 2024 alongside changes to the Skilled Worker visa salary thresholds. Unlike the old SOL, the ISL does not offer a salary discount. Instead, it identifies roles that are exempt from certain minimum salary requirements - specifically, roles on the ISL can use the going rate for their occupation code as the minimum threshold, rather than the higher general salary floor.

How Does the ISL Differ From the Old SOL?

• There is no longer a 20% reduction in the going rate for shortage roles.
• The ISL does not carry the same recruitment advantages as the old SOL.
• Employers cannot rely on a shortage designation to reduce the salary they pay to sponsored workers.
• The ISL is intended as a transitional measure pending the introduction of the Temporary Shortage List.

Which Roles Are on the Immigration Salary List?

The ISL includes a range of occupations across health, education, engineering and other sectors. Employers should check the current ISL on gov.uk to confirm whether a specific occupation code is listed, as the government may update it ahead of the 2026 reforms.

Skilled Worker Visa Salary Thresholds in 2025

General Salary Threshold

From April 2024, the general salary threshold for the Skilled Worker visa increased significantly. Most sponsored workers must now be paid at least £41,700 per year, up from £26,200 previously. This represents a substantial increase in the cost of international recruitment for many employers.

Going Rate Requirements

In addition to the general threshold, sponsored workers must be paid the going rate for their specific occupation code, whichever is higher. Employers need to identify the correct Standard Occupational Classification (SOC) code for each role and confirm that the salary offered meets both requirements.

Exceptions and Lower Thresholds

Certain categories of workers can still be sponsored at lower salary levels. These include:

• New entrants to the labour market, who may qualify for a lower threshold of £33,400.
• Workers in specific health and care roles where sector-specific rules apply.
• Workers switching from certain visa routes where transitional arrangements are in place.

The Temporary Shortage List: What to Expect in 2026

What Is the Temporary Shortage List?

The government has indicated that the Immigration Salary List will be replaced by a Temporary Shortage List (TSL) following a further MAC review. The TSL is expected to be introduced in 2026 and will operate differently from both the old SOL and the current ISL.

How Will the Temporary Shortage List Work?

Under current proposals, the Temporary Shortage List is expected to:

• Identify specific occupations where genuine labour shortages exist in the UK.
• Require employers and sector bodies to demonstrate that domestic recruitment efforts have been exhausted.
• Include time-limited designations, meaning roles will be removed from the list once the shortage is resolved.
• Potentially reintroduce some form of salary flexibility for listed roles, though this has not been confirmed.

What Should Employers Do Now?

The MAC is expected to consult with sectors and gather evidence before making recommendations on which roles should appear on the TSL. Employers in sectors that previously relied on the SOL should engage with their trade associations and monitor MAC announcements closely in 2025 and 2026.

Impact on Specific Sectors

Health and Social Care

The health and social care sector has been heavily affected by the removal of the SOL discount and the introduction of stricter care worker visa rules in 2024. Overseas care worker recruitment has fallen sharply, and many providers are managing significant workforce pressures. Sector-specific salary rules still apply to some NHS roles, but the broader landscape has tightened considerably.

Engineering and Construction

Many engineering and construction roles were previously on the SOL. Without the discount, employers in these sectors face higher sponsorship costs and must ensure that roles meet both the general threshold and the relevant going rate. Some roles remain on the ISL, providing a degree of flexibility on the general threshold where the going rate is lower.

IT and Technology

Technology roles have historically featured on shortage lists due to skills gaps in the domestic labour market. Many IT roles carry going rates that exceed the general threshold, meaning the removal of the SOL discount has had a more limited practical impact in this sector compared to lower-paid shortage occupations.

Education

Teaching roles, particularly in secondary schools and specialist subjects, were frequently listed as shortage occupations. Employers in the education sector should review whether the roles they are recruiting to appear on the current ISL and plan for potential changes when the TSL is introduced.

How Employers Should Respond to These Changes

Review Your Occupation Codes

Correct occupation code assignment is more important than ever. Using the wrong SOC code can result in non-compliance with salary requirements or sponsorship conditions. Employers should audit their current sponsored workers and ensure each role is assigned the appropriate code with the correct going rate applied.

Plan for Higher Salary Costs

The removal of the 20% discount means that some previously affordable roles now cost significantly more to sponsor. Employers should build the increased salary costs into workforce planning and budget forecasts, particularly where large volumes of international recruitment are anticipated.

Monitor MAC and Home Office Guidance

The MAC is an independent advisory body that publishes reports and recommendations on immigration policy. Employers who are likely to be affected by the Temporary Shortage List should track MAC publications and respond to any consultations relevant to their sector.

Maintain Sponsor Licence Compliance

Regardless of which list is in operation, sponsors must continue to meet all duties under their licence. This includes keeping accurate records, reporting changes to the Home Office via the Sponsor Management System, and ensuring that sponsored workers are paid in line with their Certificate of Sponsorship and the relevant going rate.

Frequently Asked Questions

Is the Shortage Occupation List still in use?

No. The UK Shortage Occupation List was abolished in April 2024. It was replaced by the Immigration Salary List, which does not offer the salary discount that the SOL provided.

What replaced the UK Shortage Occupation List?

The Immigration Salary List (ISL) replaced the SOL in April 2024. The ISL identifies roles where the going rate for the occupation code applies as the minimum salary, rather than the general £41,700 threshold, but it no longer provides a 20% discount on the going rate itself.

Will the 20% salary discount for shortage occupations return?

The government has not confirmed whether any salary discount will be reintroduced under the Temporary Shortage List. The MAC is expected to make recommendations on this as part of its review ahead of the 2026 changes.

When will the Temporary Shortage List be introduced?

The Temporary Shortage List is expected to be introduced in 2026, following a MAC review and government consultation. Employers should monitor announcements from the Home Office and the MAC for confirmed timelines.

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