Tier 2 Visas: What Constitutes a Sensible Skilled Immigration System?

The Tier 2 visa system enables organisations to source skilled workers from outside the European Economic area (EEA). With more and more sectors reporting a lack of suitably qualified candidates within the EEA, we have argued that Tier 2 visas allow organisations to source the labour they desperately need. We recently responded to the Migration Advisory Committee’s (MAC) review of the Tier 2 visa system, making several key points:

The annual cap

The cap on Tier 2 visas is currently fixed at 20,700. This figure does not take into account business growth or emerging skills shortages. We’ve suggested that the fixed cap should be replaced by a ‘sliding scale’ — a cap which could be amended regularly, preferably quarterly, taking into account variables in the market such as the number of UK graduates, qualified apprentices, increasing /decreasing labour available within EEA, etc. The long-term solution to skills shortages lies with upskilling the UK’s future workforce via apprenticeships, vocational qualifications and improved careers guidance - but improvements in these areas will take time to deliver. Access to international labour must remain unhindered until a time when the UK is able to produce enough suitably qualified candidates.

The points based system

The points based system is having a harmful effect. Points are allocated to applicants on the basis of salary, qualification level and whether a role appears on the Shortage Occupation List (SOL). This system does not prioritise those migrants of greatest benefit to the UK. Furthermore, the heavy weighting given to salary has a particularly negative effect on public sectors. A nurse’s pay may never reach the same levels as a barrister, for example, but that doesn’t mean their role is of any less importance. Increased detail, accompanied by more comprehensive points bandings, would improve the system and allow businesses to source the labour they need.

Sunsetting

The MAC has proposed the introduction of ‘sunsetting’, which would place an official time limit on roles listed on the SOL. We’ve argued against this and suggested that the current approach of regular reviews of the SOL should be retained, rather than placing yet another restriction on the ability to recruit overseas labour. Occupations listed on the SOL should be based on real-time evidence of the current jobs market rather than an arbitrary time limit.

Skills levy

The MAC asked us to consider whether a ‘migration skills levy’ should be imposed on businesses recruiting non-EEA labour. We don’t believe that business should be charged for this reason. Many businesses already invest significant resources in training and upskilling their workforce and should not be held accountable for the long standing failures of the education system. Our members have raised concerns that with the proposed apprenticeships levy, the Construction Industry Training Board levy and the possibility of a migration skills levy, there is the prospect that some businesses will find themselves taxed three times over. These are just some of our key points to the MAC on Tier 2 visas. Our full response is available here. The MAC are due to release their report to government on the wider review of Tier 2 visas in December 2015.