The latest phase in the development of a new points-based system for the UK has been laid out in the Migration Advisory Committee Report, published today.
The 270-page document offers recommendations for a future skills-based work migration system for the UK.
Specifically, the MAC was commissioned by the Government as an independent advisory body to examine the possible role of a points-based system and the appropriate level and design of minimum salary thresholds.
The report pointedly notes the Government is without the luxury of time to ruminate since the new system needs time to be introduced and employers given adequate notice of what will be substantial changes ahead of the end of the Brexit transition period.
Skilled worker route for entry with a job offer (current route: Tier 2 General)
Reform of the UK immigration system will centre on a shift from nationality-preference to skills-focus. To achieve this, the MAC is recommending a number of changes to the existing route for skilled workers, the Tier 2 General visa.
Revisions include expanding the scope of the route to cover medium-skilled jobs, to abolish the Resident Labour Market Test and implement a simplified process.
Work route for entry without a job offer (current route: Tier 1 Exceptional Talent)
The existing Tier 1 Exceptional Talent visa was criticised within the report for a lack of take up and for generally being unfit for purpose.
The MAC recommends amending or replacing the current visa to provide a more adequate route for skilled workers without a job offer. The new route would adopt an expression of interest system, enabling potential applicants to register their interest with a capped monthly allocation drawn from the pool of interested parties who can then opt to proceed with their application.
The selection should use a tradeable points-based system, with more points for the types of migrants the Government wants to encourage, such as STEM skills.
The route should be more focused on applicants with ‘promise’ and high potential who may find it more difficult to obtain a job offer, and in doing so also impose an annual cap.
Minimum salary threshold
While the stakeholder engagement returned mixed views on retaining the minimum threshold, the MAC concluded that it plays an important role in safeguarding domestic wage levels and can be used to ‘help realise the ambition of the UK as a high wage, high skill, high productivity economy’.
The recommendations are to retain the minimum salary threshold and, in basic terms, to lower the current £30,000 threshold to around £25,600, and £17,600 for new entrants (currently £20,800) based on specific calculations, unless the relevant SOC code stipulates a higher minimum.
It is also noted that the impacts expected from system reform are likely to be the result of restricting EEA migration to high-skilled and medium-skilled jobs rather than the level of salary thresholds for eligible jobs.
UK settlement
The report states simply that the MAC has “little idea whether the current system works well because we have not been able to obtain relevant data.”
The report denounces the current settlement system as “inflexible” and calls for a review of the settlement requirements and for the proposed increase in settlement income threshold.
How does a points based system work?
Under a points-based system, visa applicants are assigned points for certain attributes or criteria. This could include possessing certain skills, working in a certain role or meeting a salary threshold. To attain a visa, applicants must attain enough points.
Johnson has used the Australian points system as the model to emulate, but other countries such as Canada also operate similar systems.
Under the current UK immigration system, points are awarded under certain visa categories for English language ability, having a sponsored job offer or meeting the minimum salary threshold.
It understood the Government is now considering the MAC recommendations ahead of finalising, announcing and passing into law the reformed immigration system.
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
