Government Issues Statement of Intent on Immigration

The Government has been considering ways of balancing its stated desire to control immigration with the imperative of providing the UK economy with the skilled workers that it needs. In a 'Statement of Intent' the Government has outlined forthcoming changes.

Since 2008, the United Kingdom has operated  a points based system for 'Highly Skilled Workers and Entrepreneurs' (Tier 1) and for 'Sponsored Skilled Workers' who have a job offer in the UK (Tier 2). This 'Statement of Intent' announces that the Government will create a new 'Exceptional Talent' category in Tier 1 from 6 April 2011, restricted to 1,000 places a year, and also outlines proposed changes to Tier 2.

Tier 2 is presently split into four categories. The 'General' and 'Intra Company Transfer' categories are affected by these reforms; the 'Minister of Religion' and 'Sportsperson' categories remain unchanged.

At present, Tier 2 General applicants either have to be on the Government's Shortage Occupation List (SOL) or the job in question needs to have been advertised in the United Kingdom without success (the Resident Labour Market Test). From 6 April 2011, additionally, the occupation in question must be on a new Graduate Occupation List.

The majority of Tier 2 General candidates will also be subject to an annual limit of 20,700 immigrants, applicable from April 2011. Whereas employers with Sponsor Licences previously could allocate an annual allowance of Certificates of Sponsorship themselves, they will now need to apply for permission to allocate a Certificate of Sponsorship to each individual migrant. Applications will be considered on a monthly basis and if more applications are received than there are places available, a ranking system will be used. This will favour applicants for jobs on the SOL.

There will be some Tier 2 General cases that will not be subject to this new regime - labelled 'unrestricted' by the Border Agency. However, if a sponsor is found to be issuing unrestricted Certificates of Sponsorship to Tier 2 migrants within the restricted category, consideration will be given to withdrawing their Tier 2 Sponsor Licence.

Employers should note that the yearly allocation for restricted places will be frontloaded. There will be 4,200 places available in April 2011 compared to 1,500 in each of the other months of the year. The UK Border Agency expects to start receiving applications from 16 March 2011. No fee will be charged for the application, but there will be a fee for issuing the Certificate of Sponsorship.

Once a Certificate of Sponsorship has been allocated, the potential migrant will still need to apply for entry clearance as before, but with a few changes. For example, the standard of English required has been raised from basic to intermediate.

The Government is keen not to exclude high fliers. Therefore, those within the 'General' category filling a job with a salary of £150,000 or more will be within the 'unrestricted' category.

This approach is mirrored in the reforms to the Intra Company Transfer category. From 6 April 2011, those earning between £24,000 and £40,000 will only be given leave to stay for 12 months. They will then have to wait at least 12 months before making a further application. Those earning more than £40,000 will be able to stay for three years, with the possibility of extending their stay for a further two years.

For more detail, the Statement of Intent can be read on the UK Border Agency website on the following link:

Tier 2 of the Points Based System Statement of Intent, Transitional Measures and Indefinite Leave February 2011

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