Earlier today the Government’s long-awaited and eagerly anticipated White Paper, Restoring Control over the Immigration System, was published.
Purportedly aiming to ‘return migration policy to common sense’, the measures proposed in the White Paper focus heavily on reducing net migration to the UK, particularly lower skilled migration, which has ‘soared’ in recent years and which, Sir Keir Starmer asserted in his press conference this morning, is more likely to distort the labour market.
Whilst the White Paper also includes reforms to student visas and ways to ‘crackdown on illegal working’, those measures which will likely impact most directly (and in some cases immediately) businesses/Sponsor Licence holders include the following:
- The skills threshold for individuals applying to enter as/switch to a Skilled Worker visa will revert to RQF Level 6 (and there will be commensurate salary threshold increases).
- The Social Care visa route will be closed to overseas recruitment.
- The Immigration Salary List (which gives people discounts from salary thresholds) will be abolished.
- The Immigration Skills charge will be increased by 32%.
- The Global Talent route will be reformed to facilitate immigration to the UK of the ‘brightest and best global talent’.
- A new Temporary Shortage List will be established, which will provide time-limited access to the UK labour market to workers in lower-skilled (RQF3-5) occupations. New restrictions on bringing dependants will be imposed on such lower-skilled workers.
- Graduate visa holders will be able to remain in the UK for 18 months (reduced from the current 2 years limit) after their studies.
- There will be increased emphasis on training of the domestic workforce and much stronger ‘links between the points-based system and training here in the UK’.
- English Language requirements for Skilled Workers will increase and a new language criterion will be imposed on dependants of sponsored workers.
- Language requirements in respect of Settlement applications will increase.
- The standard continuous residence qualifying period for settlement applications will increase from 5-10 years (with some exceptions already confirmed and more in the pipeline, including the concept of ‘earned Settlement’).
- Ultimately, employers will be ‘expected to boost domestic talent and skills’ if they want to recruit from abroad.
Potential impact of the reforms on UK businesses
Many of the proposed changes will result in additional costs for employers, particularly Sponsor Licence Holders. As a reminder, the skills surcharge is levied in respect of the vast majority of sponsored workers and must be borne by the sponsoring business, so such a significant percentage increase will certainly have an impact on the overall cost of employing migrant workers.
Similarly, the doubling of the qualifying period for most settlement applications will render further interim extension applications necessary, thereby increasing costs. There are currently no tangible examples of how individuals might be able to ‘reduce the qualifying period based on points-based contributions to the UK economy and society’ and we don’t yet know whether the increased qualifying period will apply to those already en route to settlement, as well as individuals entering the UK/ switching to a qualifying route for the first time.
Increases to English language requirements will likely be welcomed generally. As the White Paper states, ‘the ability to communicate is essential to perform civic duties, and for all social connections. Without adequate language skills, there is a risk of isolation, as well as poor integration’. Individuals who are currently in the UK on work/dependant visas should, however, bear in mind that when they come to extend their current visa or apply for settlement, a new increased language criterion may need to be met (and they should consider this well in advance of the expiry of their current visa).
Finally, the Report also stipulates that, over time, RQF 6 (Bachelor's degree or equivalent) and above occupations should not necessarily have guaranteed access to the points-based system, where there is evidence of over reliance on international workers. A newly created Labour Market Evidence Group (comprised of The Industrial Strategy Advisory Council, The Department for Work and Pensions, Skills England and equivalent organisations in the Devolved Governments in Scotland, Wales and Northern Ireland and The Migration Advisory Committee) will make recommendations about RQF 6 areas where workforce plans and strategies are needed to tackle labour market problems.
More changes ahead
For the time being, however, there’s no tangible information regarding how employers will be expected to ‘boost domestic talent and skills’ if they want to recruit from abroad, nor on how to evidence that they have made an attempt to do so. Training and upskilling will clearly be a priority, and we urge all employers to ‘watch this space’ very closely. We will, of course, post regular updates on our website, as and when new announcements are made, and legislation is introduced. We expect a flurry of activity in the imminent future, given the urgency with which the Government deems it necessary to reduce net migration numbers.
For help and advice on this topic or related issues, please do not hesitate to contact Gemma Jones on 01727 798 000, or email gemma.jones@salaw.com
