Shortly after the news broke, the UK Government provided a little more detail and clarification to their announcement through a fact sheet. The document revealed plans to increase the earning threshold for overseas workers by nearly 50% from its current position of £26,200 to £38,700 from April 2024 (Home Office News Team, Dec 2023).
If you believe that your business will be impacted by the government’s proposals you may want to respond either as part of your industry body and/or separately to any consultations that the Migration Advisory Committee (MAC) might open before reporting to the Home Office on its proposals. It should be noted that because of the small window that the MAC have to carry out their work, particularly as the new Rules are proposed to be implemented in Spring 2024, they may not even open a consultation. Accordingly, it might be equally prudent to write your representations to the local MP where your business sites are based setting out your concerns.
You should already be aware that the MAC have been asked to report on two matters:
With the UKVI proposing to reform the shortage occupation list, the MAC has been asked to look at what a slimmed-down ‘salary list’ of occupations may look like. The proposal here being that the government will reduce the 20% reduction to the going rate salary for shortage occupations but recognising that there will be occupations which will remain hard to recruit and require a salary threshold which is below the proposed earnings threshold of £38,700.
The MAC is to look at the Graduate Route and to report if this visa route is fit for purpose, with the concern being that as opposed to attracting the brightest and best students into graduate roles many students are working in low skilled jobs. There clearly is a threat that the route may be scrapped altogether, or only be available for graduate roles or for those that have qualified in post-graduate qualifications. More information can be found here.
Concerns that you might want to address in your representations to the MAC, your industry body and/or your MP are as follows:
Will the New Entrant tradeable points remain in the current format? In the fact-sheet, the UK Government has confirmed that salary discounts for those at the start of their career will still exist. Currently, there is a 30% reduction to the going rate salary so long as with the reduction the salary does not fall below £20,960.
A person is a new entrant if one of the following apply:
They are under the age of 26 at the date of their visa application.
They are switching from the student or graduate route.
They are working towards a recognised qualification in a UK-regulated profession.
They are working towards full registration or chartered status in the job they are being sponsored for.