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UNITED KINGDOM – Migration Advisory Committee Recommends Scrapping Resident Labour Market Test and Tier 2 (General) Cap

On 18 September 2018, the Migration Advisory Committee (MAC) published its much-anticipated report on the impact of migration from the European Economic Area (EEA).

The report makes immigration policy recommendations based on one possible outcome of the Brexit negotiations – the end of freedom of movement of EEA nationals into the UK, and the UK deciding a post-Brexit immigration system separately from negotiations with the EU. It does not advocate this as the most desirable form of Brexit.

In this scenario, the report recommends that EEA nationals are given no special treatment by the immigration system, but that high-skilled migration into the UK is encouraged, most notably by abolishing the cap on the number of migrants under Tier 2 (General).

Below is a summary of its recommendations for a post-freedom of movement UK immigration system:

Policy Recommendations

  1. The general principle behind migration policy changes should be to make it easier for higher-skilled workers to migrate to the UK than lower-skilled workers.
  2. No preference for EU citizens, on the assumption UK immigration policy not included in agreement with EU.
  3. Abolish the cap on the number of migrants under Tier 2 (General).
  4. Tier 2 (General) to be open to all jobs at RQF3 and above (i.e., extended to medium-skilled jobs, not just high-skilled jobs as at present).
  5. Maintain existing salary thresholds for all migrants in Tier 2.
  6. Retain but review the Immigration Skills Charge, so that it also covers EEA nationals.
  7. Consider abolition of the Resident Labour Market Test. If it is not abolished, extend the numbers of migrants who are exempt through lowering the salary required for exemption. Make in-country change of employer easier for Tier 2 migrants.
  8. Review how the current sponsor licensing system works for small and medium-sized businesses.
  9. Consult more systematically with users of the visa system to ensure it works as smoothly as possible.
  10. For lower-skilled workers avoid Sector-Based Schemes, with the potential exception of a Seasonal Agricultural Workers scheme (SAWS).
  11. If a SAWS scheme is reintroduced, ensure upward pressure on wages via an agricultural minimum wage to encourage increases in productivity.
  12. If a “backstop” is considered necessary to fill low-skilled roles, extend the Tier 5 Youth Mobility Scheme.
  13. Monitor and evaluate the impact of migration policies.
  14. Pay more attention to managing the consequences of migration at a local level.

Action Items

  • Employers in the UK need take no action on the basis of this advisory report, but should be prepared for as-yet unknown changes to the UK immigration system, as a result of the Brexit process, in the near future.
DISCLAIMER: The information contained in this immigration alert has been abridged from laws, court decisions, and administrative rulings and should not be construed or relied upon as legal advice. If you have specific questions regarding the applicability of this information, please contact Peregrine © 2017 Peregrine Immigration Management Ltd.