UK-EU Agreement – implications for UK immigration

Within days of the publication of the Immigration White Paper (discussed in more detail here), the UK government has reached an agreement with the European Union which includes discussions on youth mobility.

The agreement is part of a wider deal covering several areas including defence and security; fishing and other trade. It’s significant from a UK immigration perspective not only because it is the outcome of the first major talks between the UK and the EU since Brexit, but also because it places discussions on youth mobility on a formal footing. While the agreement doesn’t immediately facilitate easier travel for British citizens or for young EU nationals who may wish to work/study/live in the UK, it lays the groundwork for future cooperation in this area.

To understand it’s significance, it should be placed in context. The UK currently has a Youth Mobility Scheme (YMS) in place which allows those aged 18 to 30 (or 35 depending on where they are from) from certain countries and who have savings to support themselves, to apply for a visa to live and work in the UK for up to two years. The scheme operates with an annual quota limiting the number of visas available to nationals from participating countries, which are set by the UK government and are subject to change each year.

Since 2024, there has been discussions about whether the YMS should be extended to include EU countries. It appears that this could form part of a substantial agreement with the UK as part of a package of other non-immigration measures.

This is particularly significant given the timing in relation to the publication of the Immigration White Paper published on 12 May 2025 which addresses many aspects of UK immigration policy (viewed by many as restrictive and onerous on business in respect of filling labour shortages). Something like the YMS could offer business access to labour not readily available domestically without the need for individuals to be sponsored at significant cost to the sponsoring UK employer.

At present the YMS is available to nationals of Australia, Canada, New Zealand, South Korea, Andorra, Iceland, Japan, Monaco, San Marino, Uruguay, as well as the national holders of a SAR passport from Hong Kong (although there are slightly different rules for each, namely some operate by invitation only). How the visa scheme might apply to an EU cohort is not clear. The European Commission, in their proposal, suggested that a reciprocal YMS would allow individuals to stay in the destination country for up to four years (which is longer than the two-year duration currently permitted under the scheme). It’s thought that an invitation only arrangement may also apply however details are yet to be formulated and agreed.

The inclusion of nationals from the EU would be a significant expansion of the scheme and change to the UK immigration landscape more generally. It may see less reliance on the sponsorship system for hiring overseas workers, as well providing opportunities here in the UK for the individuals who could enter on the visas. However, it should be made clear that the discussions on YMS don’t amount to free movement of people as under pre-Brexit EU treaties. Keir Starmer has assured that there will be ‘”no return to freedom of movement” despite wishing to establish a “stronger relationship” with the EU.