In response to a request by the former Home Secretary, the Migration Advisory Committee (MAC) has today published a report on the new Points-Based System (PBS).
Whilst the report acknowledges that UK employers need a highly skilled workforce and skilled migrants from overseas in order to remain competitive, the report recommends a number of changes designed to limit the number of skilled migrants entering or remaining in the UK. The MAC's report is part of the former Home Secretary's 10 Point Plan designed dramatically to overhaul the PBS and ultimately prevent a large number of skilled migrants from entering the UK.
The report acknowledges that UK employers do not want Tier 2 of the PBS, which was introduced in November 2008 to replace the work permit scheme, to be limited to shortage occupations only.
However, despite employer's concerns and needs, the MAC has recommended a further raft of measures designed to create additional obstacles to the use of a new scheme which employers are already struggling to implement.
These include:
- increasing the threshold of earnings to a minimum of £20,000
- workers without qualifications must earn at least £32,000
- increasing application fees for Tier 2
- increasing the period that a role has to be advertised from a minimum of one week (in some cases) to four weeks
- increasing the period before an employee can transfer from an overseas branch to the UK by an intra-company transfer from six months to 12 months
- preventing employees who transferred to the UK by an intra-company transfer at the request of an employer, in most cases to assist the UK branch of that company, from obtaining settlement and to prevent them from then earning the right to become British citizens.
Commenting on the report, Tracy Evlogidis, Head of Immigration at Speechly Bircham, said: "It is clear from the recommendations that employers will face an incredibly difficult task in recruiting skilled migrants from overseas, no matter how special they are and who they are.
Not only are employers likely to incur increased fees, much to the detriment of small and medium enterprises who are reliant on skilled migrants (especially those operating in the IT and media and arts sectors), they must now grapple with more changes, elongated processes and more red tape."
Employer's response
In order to prepare the report, the MAC invited employers to submit evidence as to how the Home Secretary's proposed changes to the PBS could impact on their business.
The response from UK employers was overwhelming, with over 250+ pieces of evidence submitted by employers and interest groups. UK employers expressed concerns that without the ability to attract skilled migrants from overseas, the UK would be at a distinct disadvantage to its competitors and multinational organisations operating a branch in the UK, without the ability to relocate skilled migrants, would need to close offices and relocate abroad.
Evlogidis goes on to say: "These further changes to the PBS clearly come at a time when the UK economy is struggling to recover and when UK employers must have the flexibility to attract the highest calibre of skilled workers in order to build strong workforce for a successful future, irrespective of nationality. The MAC's recommendations could jeopardise this. Employers will also be frustrated that they need to take further changes into account when planning their short and long term recruitment strategies".
To view the full MAC report, please go to the UK Borders Agency website to view the press release and the Analysis of the Points-Based System: Tier 2 and respondents report.
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