MAC recommends
tightening of Tier 2 skilled
worker visa route

19 January 2016

The MAC proposes a skills levy for UK employers of overseas migrants as part of their review of the Tier 2 immigration system.

The government-commissioned review, undertaken by the Migration Advisory Committee (MAC), suggests a number of changes which would substantially alter the face of skilled migration to the UK.

The 281-page review proposes that major changes be made to Tier 2:

  • Increasing the minimum salary for Tier 2 – the review advises that the current minimum salary threshold of £20,800 for Tier 2 migrants be raised to £30,000.
  • The introduction of an Immigration Skills Charge (ISC) – to reduce the reliance on overseas skills, the review proposes an upfront charge of £1,000 per year for each Tier 2 migrant worker employed by UK sponsors.
  • A new route for third party contracting – an overhaul of this Tier 2 subcategory  is recommended in order to better represent how it is currently used. It suggests that third party contracting becomes a separate route in its own right and that the minimum salary threshold is set at £41,500.
  • IHS for Tier 2 ICT applicants – it is recommended that all users of the Tier 2 (Intra-Company Transfer) route pay the Immigration Healthcare Surcharge in line with other users of the Tier 2 route.

The review was commissioned amid fears that an ever-increasing number of migrants are applying to enter the UK via this route. The MAC has openly admitted that the changes it suggests may discourage many UK companies in recruiting migrant talent in favour of training the domestic workforce.

It is now up to the government to consider whether or not these recommendations, along with others set out in the review, should be acted upon.

With the potential for extra costs of up to £5000 per visa, the introduction of these proposals would result in dramatic cost increases for the employers of migrant workers. Many UK sponsor organisations will therefore be anxious to know whether these recommendations will be introduced in April 2016.

Click here to access the full MAC review: Review of the Tier 2 report: Balancing migrant selectivity, investment in skills and impacts on UK productivity and competitiveness

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