The migrant cap:
what is the
solution?
29 June 2015
Following the rejection of countless requests for Tier 2 restricted Certificates of Sponsorship (CoS) in June and the disappointment of UK sponsor organisations across the country, we explore the ways in which a similar predicament could be avoided in the future.
Who is being affected?
When looking at the figures it is evident that many prospective employees, from graduate to experienced professionals, across multiple industries are being affected by the migrant cap.
The cap is restricting the number of Tier 2 restricted CoS that are available on a monthly basis to UK organisations wishing to employ skilled migrant workers. Under normal circumstances, the minimum salary requirement for a Tier 2 restricted CoS is stipulated to be £20,800. Due due to demand outstripping supply this June, however, all Cos requests filed by employers offering salaries of less than £46,000 were denied.
Since the proposed level of salary being offered to the migrant worker is the key differential in deciding whether a CoS is awarded, employers seeking to engage migrant workers at the lower end of the pay scale are beginning to question the scheme’s fairness.
These lower salaries are in many cases unavoidable due to the fact that the respective sponsor organisations either:
- Operate within a field which is less well-paid;
- Are small or medium-sized business where salaries are naturally lower; or
- Are situated in Wales, the North of England, Scotland or Northern Ireland, where salaries are on average also lower.
What can the Home Office do to alleviate current pressures on the migrant cap?
For various reasons, not least that the graduate recruitment season is still in full flow, it is likely that July will also see a high number of Tier 2 restricted CoS requests submitted. Many requests which were refused in June may be resubmitted in July and there is a possibility that some sponsors may submit Tier 2 restricted CoS requests earlier than usual for fear of rejection.
The Immigration Law Practitioners’ Association (ILPA) has therefore come up with a number of different ways in which the Home Office could relieve the high demand for Tier 2 restricted Certificates of Sponsorship.
Among these suggestions, we feel that the following are particularly worthy of attention:
- Allowing any valid, Tier 2 restricted CoS which is unused or no longer in use to be returned to availability within the cap;
- Reviewing current banding to ensure that smaller and medium-sized enterprises, lower-paid professions and different UK regions are not disproportionately affected by the cap;
- Reducing the higher earning thresholds;
- Exploring alternatives to Tier 2 for graduates already in the country who wish to move into employment in the UK following the closure of the Post-study work route;
- Considering the creation of a new entry route for migrant workers wishing to enter the UK on a self-employed basis, particularly those who would have fallen into the Tier 2 Creative persons category such as artists, photographers etc; and
- Opening up the Tier 1 Exceptional Talent route to ensure that the UK does not lose out on those whose migration to the UK is most highly desired.
It remains to be seen whether or not the Home Office will consider action in relieving the currently high demand for Tier 2 restricted Certificates of Sponsorship.
One thing, however, is clear. Should the government choose not to accommodate the increasing demand in the UK for skilled migrant professionals, the effects will be felt nationwide with many organisations losing out on recruiting the globe’s best and brightest minds. Over time, such a barrier to effective HR could have lasting effects on UK economic growth and lose the country its competitive edge within the international market.
For more information on how the migrant cap could affect you or your business please contact Smith Stone Walters, the UK immigration specialist.
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