MAC urges
caution over
Tier 2 salary thresholds

18 August 2015

The Migration Advisory Committee (MAC) has urged the government to be cautious when considering raising minimum salary thresholds for Tier 2 migrant employees.

Following the completion of ‘Little MAC‘, the first part of its review of Tier 2 of the points based immigration system, the MAC has recommended that the government exercise caution when considering its recent proposal to increase the minimum income thresholds of Tier 2 migrant employees in the UK.

The results of this review indicate that although a modest rise in minimum salary thresholds would have only a minimal effect on Tier 2 (General), it is not yet possible to fully identify the potential effects of such a rise on individual companies and organisations.

Another reason behind this plea for prudence is the fact that the consequences of a rise in minimum salary thresholds will be doubly felt when combined with other proposed changes, such as the skills levy.

The MAC was commissioned to examine Tier 2 shortly after the recent General Election and its review consists of two branches, affectionately nicknamed ‘Little MAC’ and ‘Big MAC’. Whilst the ‘Little MAC’ has just been completed and focussed only on the possible effects of increased Tier 2 salary thresholds for migrant workers, the BIG MAC is still under way and covers a far wider range of potential changes:

  • The implementation of a skills levy on Tier 2 visas;
  • The limitation on the time for which sectors may remain on the shortage occupation list;
  • The restriction of the automatic right for Tier 2 dependants to work;
  • The restriction of Tier 2 (General) recruitment to skills shortages and highly specialised experts; and
  • The tightening up of the intra-company transfer (ICT) route, for example applying the immigration health surcharge.

The ‘Big MAC’ will be complete in December 2015 and the MAC is currently encouraging sponsors and their legal representatives to have their say on the above matters by submitting their views and evidence to the MAC by the 25 September this year.

Written responses should be sent via email to mac@homeoffice.gsi.gov.uk or via post to: Migration Advisory Committee, 3rd Floor, Seacole Building, 2 Marsham Street, London SW1P 4DF.

Alternatively, please contact your Smith Stone Walters Immigration Advisor with your concerns regarding the above issues and we will submit these upon your behalf.

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