UK Work Visa Crisis: How Strict Migration Rules And High Living Costs Drove Out 74,000 Indians

Last Updated:December 02, 2025, 12:47 IST

UK migration has plunged, with net entries dropping 80% and thousands of Indians leaving amid stricter visa rules and shrinking opportunities. 

Indian workers and students have emerged as the largest group exiting the UK, as the country’s latest migration figures reveal a surprising downturn. The United Kingdom has often been viewed as a destination offering quality education, strong career pathways, and a diverse social environment that attracts global talent.

In 2025, the country’s appeal for international talent, especially Indian professionals and students, is being reshaped by policy adjustments, economic pressures and shifting labour market conditions. The impact of these changes is reflected in recent data: 74000 Indians left the UK in the year ending in June 2025, marking a notable shift.

The Office for Statistics (ONS) notes an 80% drop in net migration from its 2023 peak, “the lowest level seen since 2021," according to Mary Gregory, ONS Executive Director for Population and Census. And behind this fall lies tightening visa rules, steeper financial thresholds, cost-of-living crises, and an immigration system increasingly geared toward deterrence rather than retention.

What Data Says

According to the recent report published by ONS on November 27, 2025, the UK saw a net migration fall of 204,000 in the year ending June 2025, an 80% drop compared to its 2023 peak. The ONS confirms that Indians formed the single largest non-EU nationality leaving the UK, even as they also remained the top nationality arriving for both study and work.

45000 Indians on study visas left22000 Indian skilled workers left7000 under ‘other’ categories left

Total: 74000 Indian departures, the highest among all non-EU groups. The question is no longer how many are coming, but why so many are leaving.

Why Indians Are Leaving In Such High Numbers?

The ONS attributes most of the emigration to those who originally entered the UK on a study visa. The report notes, “The increase in long-term emigration of non-EU nationals who originally arrived on study-related visas is primarily being driven by the large numbers of Indian and Chinese nationals leaving in the year ending June 2025."

Students who once viewed the UK as a stepping stone to post-study work now face an environment shaped by policy reversals. The biggest contributor to students and skilled professionals leaving the country is the Graduate Route. This visa allows students to remain in the UK for two years after graduation.

The UK government has signalled its intent to make the route more strict and restrictive from 2025-2026, with potential changes including:

Shortening the durationTightening eligibilityIntroducing higher compliance checks for universities

Employers warn that this will harm the UK’s talent pipeline. According to a report, 93% of London businesses say international talent helps fill skill gaps, while 84% believe foreign students must have a post-study pathway.

Tightening Skilled Worker Visa Rules

The 2025 immigration white paper titled “Restoring Control Over the Immigration System" is reshaping the foundation of skilled migration. Some of the key changes include:

Shortening the list of eligible occupationsRemoving medium-skilled jobs (RQF levels 3-5) from the skilled visa pathwayEnding overseas recruitment for social care workersRaising English language requirements from B1 to B2 starting January 2026Increasing the settlement qualifying period from 5 years to 10 years, with stricter income thresholds

Some of these changes have already taken effect; others roll out in 2026 and 2027. For thousands of Indian graduates transitioning from the Graduate Route to Skilled Worker Visas, many occupations they expected to qualify under were suddenly removed.

The House of Commons Library, UK Parliament report warns, “Those whose occupation was removed from the Skilled Worker eligibility list in July 2025 no longer have that option… this has affected Graduate visa holders in sectors such as transport, dentistry and prisons."

This is one of the main reasons responsible for workers leaving the country.

Cost of Living Pressures

Even as policy changes are demanding more from migrants, inflation and the cost of basic living remain difficult to manage. The UK’s inflation rate stands at 3.6% (October 2025), lower than the 40-year high of 11.1% in 2022. Food prices, according to the ONS, rose 4.9% in the year to October 2025, making it the biggest contributor to persistent inflation.

Although inflation has fallen significantly since the October 2022 high, this does not mean that prices are falling. Inflation soared in 2022 because oil and gas were in greater demand after the COVID pandemic, and energy prices surged again when Russia invaded Ukraine.

Increased Financial Barrier To Staying

Migration is no longer just about visas but also about who can afford to stay. Under the proposed rules:

Anyone seeking permanent residence must earn at least £12,570 annuallySome medium-skilled workers may now need 15 years to qualify for PRPeople earning below thresholds could wait up to 30 years, or never qualifyThis affects thousands of Indian workers, especially those in entry-level roles in healthcare, retail, or hospitality.The consultation document suggests the UK aims to encourage only high earners and high-skilled workers to remain, a shift that pushes many Indians out of eligibility.

Business Groups Warn Of A Coming Talent Crisis

While the government is tightening policies, business leaders are raising concerns. London’s economic lobby groups warn that labour shortages persist in tech, finance, healthcare, teaching, and research. Scaling back post-study visas will weaken competitiveness, and UK universities may lose their global appeal.

University of Liverpool COO Lucy Everest noted that student demand remains stable but acknowledged shifting parental sentiment, “Many parents now prefer options that begin in India and lead to progression into the UK."

The Work Rights Centre further states, “The government’s preoccupation with reducing immigration is actively working against economic growth," said Dr Dora Olivia Vicol, warning that the drop in skilled worker visas “directly undermines manifesto promises to build homes and boost industry."

UK Home Secretary Shabana Mahmood has defended the controls and stated, “Net migration has fallen by more than two-thirds under this government… the pace and scale of migration has placed immense pressure on local communities."

Many sectors are still dependent on non-EU workers, especially Indians, who continue to form a significant part of the UK’s education, tech workforce and healthcare.

Where The UK Stands Now

The British government insists that the new policies will “restore control" and ease pressure on housing and services. But its own business community argues that the measures risk long-term economic harm. The reality is that the UK still attracts huge numbers of Indian students and workers, and the country is simultaneously losing them at a faster rate. The ONS data makes this contradiction impossible to ignore.

The dark side of the “Skilled Worker" label is not just about restrictions. Indian students and professionals remain a significant part of the UK’s international workforce and academic community, even as policy changes and rising living costs influence migration decisions. The recent data showing 74,000 Indians leaving in the year ending June 2025 highlights the effects of these changes.

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