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Migrant Cap under scrutiny

An inquiry into the government’s cap on skilled migrant workers coming into the UK has been launched with a view to considering the impact it is currently having on employers, the skills shortage, and the industries most affected.

The cap was first introduced in 2011 when the number of those allowed to enter the UK as skilled workers on Tier 2 visas was capped at 20,700 each year. This figure was not reached until June 2015, however, when Tier 2 applications exceeded this allowance for the first time since the scheme’s inception.

June saw the demand for restricted Certificates of Sponsorship (CoS, a document essential to the hiring of non-EEA migrants) completely outstrip supply and cause many requests from UK employers for this document to be refused. This left gaping holes in their HR plans as many positions went unfilled.

Once the cap is reached, requests for restricted CoS specifying high-end salaries are prioritised, leaving smaller businesses and lesser-paying industries struggling to fulfil their HR needs.

As a result, the inquiry is being launched by the Home Affairs Committee amid concerns for economic growth as many industries across the UK, including the health sector, are currently experiencing severe skills shortages and consequently recruit high levels of overseas staff.

The Committee will seek to establish whether the current system is still an appropriate means of effectively controlling immigration to the UK whilst maintaining the necessary skills base across all industries.

Should the cap system be found wanting in its ability to supply the required expertise to a variety of sectors on a fair basis, the Committee will also consider alternative approaches.

To this end, the Committee is inviting written submissions from interested parties and their legal representatives which must be submitted online by 9 September this year.

Speak to Smith Stone Walters today for advice on how to best avoid the effects of the migrant cap on your global HR strategy.


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