The REC and Skilled Migration- the Debate is Far from over

Earlier this month the REC hosted the last technology sector group meeting of the year. Immigration has been raised as a prominent issue at almost every sector group meeting this year. Sectors concerned include education and healthcare due to the shortage of teachers and nurses, as well as engineering, life sciences and the MMCC sectors.

It’s been a year of trial and tribulation for the skilled immigration system, particularly around the Tier 2 visa (the main route of economic migration into the UK). In summer 2015, the reach of the monthly Tier 2 visa cap caused trouble for both private and public sector employers suffering from domestic skills shortages and there is more uncertainty on the horizon in the shape of the Migration Advisory Committee’s (MAC) wider review of the Tier 2 visa route.

The MAC review: what to look out for

The report from the MAC will cover a range of issues including alternatives to the current cap, how the Shortage Occupation List (SOL) is reviewed and the immigration skills charge which is ensconced within the government’s Immigration Bill.

Now, the Department for Business, Innovation and Skills (BIS) will consult separately on how the proceeds of the immigration skills charge could be spent and the businesses to which it might apply. The amount will be set by government following the advice of the MAC and the BIS consultation.

The REC stated in its submission to the MAC in September 2015 that employers should be free to choose how they invest in the training and development of their staff. By attaching an added cost to the recruitment of non-EEA Labour, the government is making it more likely that vacancies will remain unfilled and that growth will slow down.

The Shortage Occupation List

Not everything in 2015 has been negative on the skilled migration front. Four technology titles (product manager, data scientist, senior developer and cyber security specialist) were added to the SOL and the nursing profession has also temporarily been added to ensure safe staffing levels in our hospitals over the winter period. Despite the government reiterating its intent on cutting immigration down to the ‘tens of thousands’, these are significant and encouraging steps for UK immigration policy.

In addition, Tech City UK attended REC Technology last week and presented on the newly unveiled Tech Nation Visa Scheme (Tier 1 Exceptional Talent). In light of underuse of the Tier 1 route and to raise candidate and business awareness, four additional criteria have been added, in the words of Tech City UK, to “ensure that the UK continues to maintain its position as a globally competitive digital powerhouse”:

1. Empowering the North – a candidate intends to make a contribution to the North of the UK;
2. Recognising ‘Exceptional Promise’ in individuals who are yet to become world leaders in their field but can demonstrate their potential to do so;
3. Building UK Scale Ups – a candidate has the business or technical skills that are most needed in the UK digital technology sector; and,
4. Relocating Teams – for overseas teams of up to five individuals that want to relocate to the UK; each individual must qualify in their own right.

More information on the scheme can be found on Tech City’s website.

We will continue to argue for the removal of the Tier 2 cap, but we applaud the use and expansion of other visa routes available to budding entrepreneurs and other non-EEA candidate aspiring to bring their talent to the UK. The Immigration Bill will have its second reading in the House of Lords on 22 December 2015, whilst the MAC is due to publish their recommendations to government in mid-December. We will update you on the key points as soon as they are available.

The Home Affairs Select Committee published its report into immigration and skills shortages on 18^th Dec, which draws on evidence from the REC.  This is a great step forward in our lobbying activities and we hope the report will be considered in full by the MAC.