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New Migration
Advisory Committee Report:
Tier 2 and
dependants
In February this
year the Home Secretary requested the Migration Advisory Committee (MAC) to
comment on whether there is an economic case for restricting Tier 2 of the
Points Based System (PBS) to Shortage Occupations only, and also to assess the
economic contribution of the dependants of PBS migrants.
The MAC’s report,
released on 19 August 2009, contains some key recommendations of interest to UK
employers who use Tier 2.
Key
recommendations
The approach taken
by the MAC was to review available statistical data and research papers as well
as consulting as widely as possible with stakeholders, with a view to making
recommendations that would serve as a means of allowing the PBS to function as
an automatic stabilizer across the economic cycle rather than constituting a
knee-jerk reaction to the current recession being experienced in the UK and
globally.
The MAC’s report
includes the following key recommendations regarding Tier 2:
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·
That the Government should consider whether to award points for specific
professional qualifications as part of the Tier 2 points assessment
-
·
That a Masters level qualification should be awarded 15 points (instead of
the current 10)
-
·
Raising the threshold levels for points allocated for prospective earnings
(5 points for at least £20,000, 10 points for at least £24,000, 15 points
for at least £28,000 and 20 points for at least £32,000)
-
·
Allowing an extra 5 points to be awarded for certain occupations involved in
the delivery of key public services and for those switching from the Tier 1
(Post Study) routes
-
·
Retention of the Resident Labour Market Testing (RLMT) Route, with a
required advertising period of 4 weeks for all jobs and the possibility of
introducing a certification scheme (at least for high risk employers)
-
·
Retention of the Intra-Company Transfer (ICT) Route, with ICT migrants
needing to have spent 12 months with their employer (instead of the current
6 months) to qualify, removing the eligibility of Tier 2 (ICT) migrants for
permanent residence and also asking the Government to consider how to
improve the sufficiency and transparency of enforcement arrangements for the
sub-tier
-
·
Scaling down the acceptable allowances for prospective earnings points
scoring and asking the Government to consider what scope there may be to
work with the HMRC in identifying potential abuses of the tax system
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·
Keeping sponsorship fees at the current levels, however with the possibility
of using fees as a means of improving compliance in the long term if the
Government considers it appropriate
In its report the
MAC noted that there is limited data available regarding PBS dependants, their
labour market outcomes and the impact they have on the labour market outcomes of
others. No specific recommendations were made regarding this group, however it
was observed that based on the limited information available there was no reason
to conclude that greater restrictions on the work rights for PBS dependants
would lead to better outcomes for UK workers or the economy.
Where to next?
The Government will
now consider the MAC’s recommendations and decide whether (and how) to adopt
them.
The recommendations
to bar Tier 2 (ICT) migrants from using time spent in that capacity to qualify
for permanent residence and to investigate the intentions of migrants from a tax
perspective are particularly controversial, as is the recommendation to increase
the ICT qualifying period from 6 to 12 months.
Employers and
individuals who have queries, comments or concerns regarding the recommendations
should raise these with their immigration adviser or the UK Border Agency
without delay in order to have their views considered ahead of any formal
announcements regarding the adoption of the MAC’s recommendations.
Your feedback
is appreciated; Please provide your comments below.
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