8 November 2019

Laura Devine Immigration participated in the Migration Advisory Committee (MAC) consultation on changes to the Tier 2 salary thresholds and the introduction of an Australian Points-Based System.

Based on our experience and feedback from clients in a wide range of sectors and locations, we presented proposals supporting the workforce needs of our clients and the UK economy.

For a full copy of the report please email PSL@lauradevine.com.

In summary, our main recommendations include:

• Abolition of the generic minimum salary threshold of £30,000 when Tier 2 is expanded to cover medium-skill level posts (otherwise the benefit of expanding the scheme would be largely negated, with a high proportion on mid-level occupations excluded based on salary); any minimum salary threshold must take account UK salary norms in the relevant occupation.
• Occupational salary thresholds should also recognise regional variations (in particular, between London and elsewhere) to ensure that regional businesses are not disproportionately disadvantaged in accessing international talent.
• Exemptions or reductions to thresholds should be applied in certain circumstances, for example this may include for skills shortage occupations, key workers/roles of high public value and/or certain sectors.
• Reduction of government charges (such as application filing fees, Immigration Health Surcharge and Immigration Skills Charge); the current very high charges may be unduly prohibitive for many businesses once the scheme is extended to medium skill level rules and to EEA nationals.  If a general reduction is not adopted, again exemptions or reductions to charges should be applied in certain circumstances.
• An Australian Points-Based System (PBS) could usefully operate alongside current employer-sponsored routes in the UK system, not in place of those routes.   The Australian PBS is primarily an independent route for migrants in certain occupations and for which a job offer is not required (and is additional to Australia’s employer-sponsored categories).   Such a route could benefit the UK, for example to select certain very highly skilled migrants, those is acute shortage occupations and entrepreneurs.  However, key disadvantages of the Australian system, including very substantial time delays and uncertainty must not be replicated in the UK.

The MAC is due to report in January 2020.