Skills levy
for employers
of Tier 2 migrants

The Migration Advisory Committee (MAC) has proposed the introduction of a skills levy on migrant workers.

Referred to by the MAC as the Immigration Skills Charge (ISC), the skills levy would hit UK employers of migrant workers with a fee of £1,000 per year for each Tier 2 migrant worker employed under their sponsorship.

Along with other proposed changes to the Tier 2 skilled worker visa system, the suggested skills levy comes as part of the MAC’s review of the Tier 2 visa route into the UK.  The review was commissioned amid fears that an ever-increasing number of migrants are applying to enter the UK via this route.

Whether or not the UK government will act upon these recommendations remains to be seen.

The resulting costs of an ISC for UK employers would be extremely high. The MAC has openly admitted that such a skills levy might discourage many UK companies in recruiting migrant talent in favour of training the domestic workforce, and with potential extra costs of up to £5,000 per visa, this could well come to pass.

The skills levy comes as part of a rack of proposals made by the MAC as part of its Tier 2 review. Click here to access the full MAC review.

UK sponsor organisations should take note of these recommendations as it is likely that the government will choose to introduce many of the proposals as early as April 2016.

 

More on this topic…

MAC recommends tightening of Tier 2 skilled worker visa route

5 things to expect in UK immigration 2016

MAC urges caution over Tier 2 salary thresholds

Have your say on the Tier 2 review

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