UK IMMIGRATION NEWS

UK Business Calls for Points-based immigration system reform

Thursday, 20 August 2009

Business leaders and immigration lawyers have accused the UK government of harming business with their Tier 2 Skilled Worker points-based immigration system (PBS) – the replacement for the former work permit scheme.

Based on the Australian points-based system and launched last year to manage the numbers of overseas workers coming into the UK, the new system has led to delays in visa approvals with difficulties also faced in the areas of graduate recruitment, internships and training schemes.

Leading immigration lawyers deemed the PBS 'utterly inflexible' and pointed out that FTSE 100 companies are being forced to advertise senior positions in local job centres to meet stringent labour market testing requirements.

Whilst employers groups have supported the PBS as a whole, dissatisfaction is mounting due to the Home Office's frequent legislative and policy changes in this sector. Mr Neil Carberry, head of employment policy at employer group, CBI said:

"There is growing frustration that rules are getting changed pretty much on a weekly basis and there is frustration about visa delays."

At the same time however, the government's Migration Advisory Committee (MAC) has recommended even tighter restrictions on the inflow of non-European Tier 2 migrants into the UK. The MAC has recommended a 10% cut to the current annual intake of 50,000 Tier 2 migrants, recommended minimum salaries of at £20,000 pa and increasing the period of required advertising in job centres from two to four weeks. Exceptions were to be made for senior roles in blue chip FTSE companies.

The new proposed restrictions are designed to ensure the intake of Tier 2 migrants from outside the European region does not involve the undercutting or displacing of UK workers or act as a disincentive to train them in new skills. The MAC did however reject proposals to restrict the Tier 2 category to shortage occupations only.

Speaking of the recommendations, MAC chairman, Professor David Metcalf said:

"We believe that selective immigration that favours more skilled workers, as the points-based system does, is vital to ensure that the UK continues to be thought of as a good place to do business, invest or study... We have therefore made a number of recommendations which will help avoid undercutting and any disincentives to raise the skills of UK workers."

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