Upcoming UK Immigration Changes

This post has been updated following further announcements by the UK Government (read more here)

Reviewing the MAC Report on the UK's Points Based System

Your immigration mind might be boggling with the departure of the UK from Europe so we thought we’d simplify another piece of important immigration news for you!  With a post-Brexit landscape in mind and the Government’s renewed interest a Point Based Immigration (PBS) system, the Migration Advisory Committee (MAC) were asked to consider the characteristics and attributes that should be prioritised in an “Australian-style” PBS and review minimum salary thresholds for sponsoring migrant workers.

Their report was published last week and supplements recommendations previously made by the MAC in 2018.  Although the MAC is an independent body and their role is truly advisory, their report will undoubtedly shape the Government’s development of a new immigration system to be introduced in January 2021 following the Brexit transition period.  The report runs at over 270 pages so we’ve summarised the main recommendations below:

Recommendations for migrants with a job offer

The MAC recommends retaining the existing framework for Tier 2 (General), with a few major changes:

• The minimum salary threshold should be reduced from £30,000 to £25,600 for Tier 2 (General) ‘experienced’ sponsored workers and from £20,800 to £17,920 for ‘new entrants’;

• The definition of ‘new entrant’ should be widened to include those who are working towards recognised professional qualifications and those who are moving directly into postdoctoral positions;

• The relevant salary thresholds should apply across the UK and there should be no regional salary variation although there should be a separate pilot for ‘remote’ areas of the UK;

• The MAC report cross-refers to a previous report from September 2018 which recommended medium-skilled occupations should be eligible for sponsorship, the monthly cap on Restricted Certificates of Sponsorship should be abolished, and the Resident Labour Market Test should also be abolished;

• The use of ‘points’ rather than selective criteria is redundant and could be removed; and

• The rules for Tier 2 (General) migrants owning equity in their Sponsor should be reviewed.  For reference, the current rules restrict shareholding of more than 10% unless the migrant is a ‘high earner’.

Recommendations for migrants without a job offer

The MAC recognises value in the current Tier 1 (Exceptional Talent) route; however, the bar is too high since it only attracts the very top in their field. The following modifications have been suggested to attract the necessary talent post-Brexit:

• The MAC suggests that the route should operate on an ‘expression of interest’ basis creating a pool of migrants interested in coming to the UK. Every month there would be an invitation to submit a full application from that pool, subject to a cap;

• Selection from the pool should be points based and the MAC suggests the Government assign points to characteristics such as age, qualifications, previous study in the UK and priority areas such as STEM and creative skills;

• The MAC would expect that all those currently accepted under Tier 1 (Exceptional Talent) would also be accepted once the above modifications have been made; and

• The category should be regularly monitored, evaluated and refined.

Recommendations for settlement

The MAC’s principal recommendation is to enforce an immediate pause in the proposed increases to the settlement income threshold as it is ‘concerned that the current level of the general settlement salary threshold is quite high and unrealistic for workers in a number of professions and for those who have entered under the much lower new entrant salary thresholds’.  There should be a review of the requirements for settlement and this may bring a recommendation for a more flexible path to settlement.

Commentary

We welcome the findings for a lower minimum salary threshold for Tier 2 (General) migrants and discontinuing the proposed increases to the settlement income threshold but note the frustration of many clients that the same salary rates apply to workers in Inverness as they do in London.  Further, the report fails to adequately address the issue of lower-skilled migrants who currently do not qualify for sponsorship under the existing framework, which will be particularly felt in some sectors following Brexit.  There is a lot to be done before the end of the transition period and we will keep you apprised of Government announcements in light of the MAC recommendations, including of course the White Paper due to be published in March.