Tier 2 Call for Evidence Recruiting Non-EEA Nationals
Family Migration Vanna Aldin Tier 2 Limit 2011-12 and Associated Policies Call for Evidence Mark Franks www.ukba.homeoffice.gov.uk/mac 1
Outline • The Migration Advisory Committee (MAC) • Policy overview • Data context • MAC commission • Request for evidence 2
The Migration Advisory Committee • Non-departmental public body set up in 2007 • Provides evidence-based advice to Government on immigration issues • Immigration experts and economists • Supported by secretariat of economists, researchers and policy officials • Has advised in the past on migration from the EU and through the Points Based System, including limits on Tiers 1 and 2 • Recommends, does not decide 3
Overview of Tier 2 policy • Points Based System • Tier 2 is for skilled migrants only (NQF 4+) • Routes include intra-company transfers, Resident Labour Market Test and occupational shortage list • Tier 2 annual limit 2011-12: 20,700 • Excludes intra company transfers • Includes only out-of-country main applicants • Tier 1 annual limit: 1,000 4
Data context Net long-term migration by citizenship,1991 to 2010 400 Net EU Net Non-EU Net British 300 Net Non-IPS Net All 200 Flows (000s) 100 0 -100 -200 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 5 Source: Home Office, 2011
Tier 2 entry clearance visas granted to main applicants and dependants, Q4 2007 to Q3 2011 120 Ministers of religion/missionary Entry clearance visas issued (000s) 100 Other permit free employment - skilled Tier 2 - Sportsperson 80 Tier 2 - Ministers of Religion 60 Tier 2 - Intra Company Transfers Tier 2 - General 40 Work Permit Holders 20 Tier 2 Dependant 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 6 2007 2008 2009 2010 2011
Number of Entry Clearance visas and in- country leave to remain grants by Tier 2 main applicants and dependants, Q3 2011 Entry Clearance Visas (out Leave to remain grants (In of country) country) Main Main Dependants Dependants Applicants Applicants Tier 2 - General 2,550 3,929 2,295 Tier 2 - Intra Company Transfers 749 1,805 1,740 3,276 Tier 2 - Ministers of Religion 83 117 151 Tier 2 - Sportsperson 84 16 10 Tier 2 - Intra Company Transfers Short 4,383 1,154 Term Tier 2 - Intra Company Transfers Long 3,256 3,177 Term Work Permit Holders 10 317 3 87 Total 11,115 7,924 5,870 4,283 Notes: In-country grants are grants of leave to remain in the UK, including extensions and those switching visa categories. Source: Home Office, Immigration Statistics (2011) 7
MAC Commission Level of limit MAC call for evidence Government question • Impact of 2011/12 limit? • At what level should the limit on Tier 2 (General) be set for • Impact of lower limit in 2012, taking account of the 2012/13? economic, labour market, • Why low uptake of Tier 2 social and public service (General)? impacts of the limit; and of the • Employer responses to limit uptake of Tier 2 (General) considered and put in place? and intra-company transferee visas in 2011/12? 8
Monthly allocations and grant of Tier 2 restricted Certificates of Sponsorship (CoS), April to August 2011 Initial monthly CoS available CoS granted CoS allocation for allocation April 2011 4,200 4,200 1,019 May 2011 1,500 4,666 781 June 2011 1,500 5,397 845 July 2011 1,500 6,064 859 August 2011 1,500 6,760 819 September 2011 1,500 7,719 673 October 2011 1,500 8,536 818 Total 13,200 5,814 9
MAC Commission Skill level for Tier 2 MAC call for evidence Government question • Right methodology (see MAC • Which occupations skilled to report from Feb 2011)? NQF 4+ but not NQF6+? • Right occupations excluded • Implications for shortage (see above, or call for occupation list? evidence document)? • Impact on Tier 2 numbers of • Economic impact of raising raising skill bar? the skill bar? 10
Identifying skilled occupations MAC skill Thresholds for Thresholds for indicator NQF 4+ NQF 6+ SOC skill level 4 4 Earnings (median £13.40 £15.98 hourly wage) Formal Qualifications 41 per cent or more of 38 per cent or more of the workforce within the workforce within an occupation an occupation qualified to NQF4+ qualified to NQF6+ 11
List of occupations skilled to NQF4+ but not to NQF6+ List of occupations skilled at NQF4+ but not NQF6+ SOC Code Occupation 1152 Office managers 1183 Healthcare practice managers 1185 Residential and daycare managers 1219 Managers in animal husbandry, forestry and fishing 1222 Conference and exhibition managers 1231 Property, housing and land managers 1235 Recycling and refuse disposal managers 1239 Managers and proprietors in other services n.e.c.* 3121 Architectural technologists and town planning technicians 3123 Building inspectors 3131 IT operations technicians 3211 Nurses 3213 Paramedics 3218 Medical and dental technicians 3221 Physiotherapists 3319 Protective service associate professionals n.e.c.* 3411 Artists Note: * - not elsewhere classified 12
List of occupations skilled to NQF4+ but not to NQF6+ List of occupations skilled at NQF4+ but not NQF6+ SOC Code Occupation 3412 Authors, writers 3413 Actors, entertainers 3414 Dancers, choreographers 3422 Product, clothing and related designers 3431 Journalists, newspaper and periodical editors 3433 Public relations officers 3513 Ship and hovercraft officers 3531 Estimators, valuers and assessors 3537 Financial and accounting technicians 3539 Business and related associate professionals 3541 Buyers and purchasing officers 3543 Marketing associate professionals 3551 Conservation and environmental protection officers 3561 Public service associate professionals 3564 Careers advisers and vocational guidance specialists 3566 Statutory examiners 3567 Occupational hygienists and safety offices (health and safety) 13
MAC Commission Intra-company transfers MAC call for evidence Government question • Impact of strictly applying • £40k threshold an appropriate GATS definition? proxy test to ensure that migrants meet GATS • £40k reasonable pay definition of senior managers threshold for such jobs? and specialists? • Regional variations? • Allow for regional variations in pay? • Does inclusion of non-salary remuneration undermine use of £40k threshold as a proxy test of skill? 14
GATS definitions • Senior Manager : Persons working in a senior position, who primarily direct the management of the establishment, receiving general supervision or direction principally from the board of directors or stockholders of the business or their equivalent, including having the authority personally to hire and fire. • Specialist : Persons who possess uncommon knowledge essential to the establishment's service, research equipment, techniques or management. 15
MAC Commission Resident Labour Market Test MAC call for evidence Government question • Impact of lowering threshold • If RLMT exemption threshold on employers? was to £70k-£100k, what would be the impact on • Impact on labour market? demand for Tier 2 visas, the resident labour force and employers? 16
Emerging key issues • Constant change to the system • Low allocation of CoS linked to the recession and poor experience of interim limits • Recruiting non- EEA staff is not a “low cost” option • Potential regional impacts of salary thresholds • Bureaucracy and delays resulting from the RLMT • Increased costs of recruiting especially for small and medium size enterprises • Concerns about raising the skills threshold 17
Responding to call for evidence Call for evidence document : www.ukba.homeoffice.gov.uk/mac The MAC must submit its report to the Government by 31 January 2012 The MAC has issued a consultation asking for evidence to be provided by 21 December 2011 The MAC will assume evidence has not been provided in confidence unless specifically told otherwise 18 18
Responding to call for evidence Please send responses to: Migration Advisory Committee, 2 nd Floor, Fry Building, 2 Marsham Street, London, SW1P 4DF. Email: mac@homeoffice.gsi.gov.uk For further advice please call: 020 7035 1764 19 19
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