Now that we have finally left the EU, the shape of our labour needs for the future will be determined by the new points-based system which replaces the current one. Many have expressed concern that the changes do not cater for low skilled staff and the challenges of filling these positions from the local market will remain for months and years to come.
Nevertheless, there are fundamental policy changes for skilled workers which will give employers much more choice over staff. In the last few years, the skill levels were raised and this excluded a wide number of positions. Also employers in most cases had to carry out a labour search within the UK. Where a local applicant matched the skills of a migrant worker, the employer was required to choose the local applicant over the migrant worker. There has been a significant shift in this policy. The skill level has been reduced from graduate level to A level equivalent positions opening up a range of jobs in a wider number of industries. There is no labour market test and therefore employers can now select the best candidate for their needs.
There were also complicated rules preventing migrants in one category from switching within the UK to another. These restrictions have been more or less removed making it so much easier to move from one category to another.
The quota that was in place which largely favoured high earners has been suspended although not permanently removed. For now, this opens up a level playing field to a wider type of positions.
There are particularly welcome changes in relation to students. You may remember the volatile culture created during Theresa May’s premiership in which students were demonised and severe restrictions were placed on them. This resulted in a steep drop in student numbers. This government have swept away a number of these restrictions. They can switch to skilled worker status for up to 2 years after they graduate. Those who are working towards a recognised professional qualification or working towards full registration or chartered status will qualify. This will be welcome news to accountancy and pharmacy practices.
The general salary that must be paid for most positions has been reduced to £25,600 although there are other rates, £23,040 with £20,800 being the absolute minimum. However, nurses and midwives in training are permitted to earn below this for a short period of time. However there is a sting in the tail in these figures. For most positions, although the baseline is £25,600, each occupation also has a “going rate.” The salary must equal or exceed the going rate in addition to meeting the general threshold. For many positions, the going rate is much higher. Furthermore, employers would need to factor in other charges which have crept in over the years at an alarming rate and include the fees and the Immigration skills charge which are payable.
So far so good. This system has been made more flexible allowing points to be traded in certain areas. The regulations require the position to be genuine. There is an Administrative review if refused but this is largely based on casework errors. It remains to be seen how the system will operate on the ground. Will certain countries have higher rates of refusal?
Overall there has been a mixed bag of changes, mainly positive. From experience, when the original points based system was introduced it championed flexibility as the key benefit. Instead employers found that the system was rigid and many licences were stripped from employers on the basis that the positions were not genuine or were exaggerated. Let us hope these new rules do not end up the same way.
One of the areas where ties could have developed are between the Commonwealth countries and the UK. The Youth Mobility Scheme which enables the young to come to the UK and work has favoured Australian, New Zealand and has recently included Japan and South Korea. Africa and the Indian subcontinent have never been considered to be important enough for inclusion despite these historical ties.
Stoked by the media, for many years immigration policy was about numbers and restrictions were aimed at this. This policy has, for now at least been shelved. Long may it last.
