Out-Law News 2 min. read

Government announces new earnings threshold for overseas workers looking to settle in UK


Overseas workers must earn a minimum of £35,000 from 2016 before becoming entitled to apply to settle in the UK, the Government has announced.

The changes mean that skilled migrant workers coming to the UK under Tier 2 of the 'points-based' immigration system (PBS) will no longer be able to apply to settle in the UK after five years' residence. The Government said that the threshold would mean that "only the brightest and best workers, who strengthen the UK economy", will be able to apply for permanent residency.

Workers applying for temporary permission to enter and remain in the UK will only be able to stay for a maximum of six years, the Government said. A new 'cooling off' period will also be introduced, meaning that a worker will not be able to apply to stay in the UK again until 12 months have passed.

Scientists and researchers in PhD-level roles will be exempt from the new earnings threshold, as will workers in "shortage occupation jobs" - which currently include specialist nurses, teachers and social workers.

In a written ministerial statement, Home Secretary Theresa May said that the volume of migrant workers settling in the UK had reached "record levels".

"Tier 2 is intended to provide a solution to temporary skills gaps in the domestic labour market. At a time of high unemployment, we owe it to British workers to ensure that our migration system does not perpetuate reliance on migrant labour," she said.

In order to settle, a worker must be paid at the higher of the threshold or at the "appropriate rate for the job" as specified by the UK Border Agency, May said. The same threshold will apply until April 2018 to "provide certainty for migrants and employers", she added.

The PBS was introduced in 2008 to replace the existing work permit system. Under the PBS, migrants from outside the EEA and Switzerland must be able to demonstrate that they possess certain attributes before they can get permission to enter or remain in the UK.

The Government has already introduced several changes to the system including replacing the old Tier 1 route, which allowed highly skilled migrants to come to the UK without a job offer, with new routes for entrepreneurs, investors and people of "exceptional talent". It has also introduced a cap on the number of skilled workers who can enter under Tier 2 to fill specific vacancies, raised required skill levels and language requirements. A tighter student visa system will also come into effect from April.

In October, the Prime Minister said that he would be asking the Migration Advisory Committee (MAC) to reduce the limit of 27,000 workers able to enter the UK under the Tier 2 route. David Cameron said that the number was unnecessary as companies were using less than half of their monthly visa quota. However, the MAC, which advises the Government on immigration issues, published a report (226-page / 2.9MB PDF) yesterday recommending that the limit stay as it is.

"These are the very people who are most likely to contribute to economic growth via, for example knowledge transfer and consequent inward investment. These migrants also on average make a substantial net contribution to the public finances," said committee chair David Metcalf.

Industry body the British Chambers of Commerce said that businesses would be "relieved" to see the migration cap unchanged.

"Lowering the limit would have little effect on net migration, but could pose a risk to future economic growth and damage Britain's reputation as a place to invest and do business. Skilled workers come here to contribute - if [they] think Britain doesn't want their talent and ability, they will go to our global competitors," said Director of Policy Adam Marshall.

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