Theresa May has announced that there will be a consultation process ahead of a permanent annual cap on non-EU migration. In the interim period, the UKBA will attempt to reduce the numbers of migrants coming to the UK by 5%.

We are able to confirm the following:

  1. the first full annual limit on non EU migration will be implemented in April 2011. There will a number of interim measures to prevent a surge in migration which will be introduced on 19 July;
  2. the MAC will conduct a full consultation process in relation to the levels of the limits of immigration and will report in September 2010. This will not be restricted to key stakeholders;
  3. numbers of non EU migrants migrating to the UK will be reduced by 5% between 19 July 2010 - April 2011 to 24,100;
  4. the new measure will distinguish between the different tiers and categories of the PBS.

Interim Changes: Likely measures

We understand that the following are the likely interim changes:

  1. Tier 1 (General)
  • Out of country applications limited to 5400
  • No limit on in country applications
  • Pass mark raised by 5 points

As yet there is no indication of how the quota will be administered.

  1. Tier 1 (Post Study Worker)/(Investor)/(Entrepreneur)
  • All unaffected
  1. Tier 2 (General)
  • Applications are limited to 18700. UKBA will contact Sponsors regarding the implementation of the limit
  1. Tier 2 (ICT)
  • Unaffected

Conclusion

If correct, it is obviously very good news for global employers that the quota is not being applied to the Tier 2 (ICT) category. However, this may cause issues if there are permanent transfers to the UK and we have previously looked to Tier 1 (General) to provide a solution as Tier 2 (ICT) no longer leads to settlement. However, as there is no cap on in-country Tier 1 (General) applications, we may be able to switch individuals to Tier 1 (General) status once they are in the UK if they wish to accrue time towards settlement.

We expect to provide further update shortly detailing how the interim changes will be administered.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 28/06/2010.