UK immigration update 23rd February 2024 Migration Advisory Committee's SOL rapid review. Shortage Occupation List is due to be transformed into Immigration Salary List (ISL). On 4 December 2023, the Home Secretary announced several changes to the immigration system related to the Skilled Worker (SW) route. Subsequently on 17 January 2024 the government commissioned the Migration Advisory Committee (MAC) to carry out a rapid review of the new Immigration Salary List (ISL) and to report by 23 February 2024. This MAC's report fulfils that request. MAC expects to receive a commission for a full review of the ISL and ask the government to consider the points outlined in the 23rd February 2024 report prior to commission.
MAC utilised available data and the stakeholder evidence published in MAC's major reviews of the SOL in 2020 and 2023. As part of a more substantive review of the ISL, anticipated to start later in 2024, MAC intend to carry out extensive stakeholder engagement, including a Call for Evidence (CfE), stakeholder roundtables, and a renewed assessment of labour market conditions and quantitative data against the new salary thresholds.
SUMMARY OF THE 4TH DECEMBER 2023 IMMIGRATION CHANGES ANNOUNCED BY HOME OFFICE
Below we present summary of the changes to the UK immigration rules that are due to take place in the spring 2024.
• Shortage Occupation List (SOL) to be replaced with the Immigration Salary List (ISL);
• Abolishing the 20% ‘going rate' discount, previously a benefit of placing an occupation on the SOL;
• Skilled Worker route ( except Health & Care worker (H&CW) visa):
o General threshold raised from £26,200 to £38,700. This is an increase from the 25th to 50th percentile (median) of eligible Skilled Worker occupations alongside an update to the latest nominal wage data (Annual Survey of Hours and Earnings (ASHE));
o Raising the occupation-specific thresholds from the 25th percentile to the 50th percentile (median) full-time salary of the occupation for non-H&CW occupations or the national pay scale where applicable; and,
o For occupations on the Immigration Salary List, a threshold of either £30,960 or their occupation-specific threshold, whichever is higher.
o An exemption recognising the public value and as stated by the government to "continue to bring the healthcare workers that our care sector and NHS need";
o General threshold of £29,000 rather than £38,700, which continues to be the 25th percentile of salaries uprated to the latest data;
o Occupation-specific thresholds set at the 25th percentile or the national pay scale where applicable; and,
o For occupations on the Immigration Salary List, a threshold of either £23,200 or their occupation-specific threshold, whichever is higher.
SUMMARY OF CHANGE IN IMMIGRATION RULES RELATED TO THE SHORTAGE OCCUPATION LIST (SOL)/IMMIGRATION SALARY LIST (ISL)
For ease of reference, further below we present the new salary thresholds that are due to apply from 4th April 2024. The changes in the salary rates will have significant impact on sponsor employers.
General threshold (minimum salary threshold if not on SOL/ISL) – From April 2024
Non-Health &Care occupations – £38,700
H&CW occupations not on a pay scale (including care workers and senior care workers) – £29,000
Pay scale occupations – £23,200
Minimum general threshold if on SOL/ISL – from April 2024
Non-Health &Care occupations – £30,960
H&CW occupations not on a pay scale (including care workers and senior care workers) – £23,200
Pay scale occupations – £23,200
Occupation-specific threshold – from April 2024
Non-Health &Care occupations – 50th percentile
H&CW occupations not on a pay scale (including care workers and senior care workers) – 25th percentile
Pay scale occupations – National pay scales
MIGRATION ADVISORY COMMITTEE'S RAPID REVIEW RECOMMENDATIONS
Migration Advisory Committee (MAC) have recommended 21 occupations be included on the Immigration Salary List, which represents 8% of job roles eligible for the Skilled Worker route. Previously, approximately 30% of job roles eligible for the Skilled Worker route were on the Shortage Occupation List (SOL).
MAC's Rapid Review provides justification for including care worker occupations on the ISL in this interim review but will be revisiting this position as part of a fuller ISL review. In making care workers eligible in 2022 MAC recognised the very considerable public benefit that is provided by the social care sector, over and above its economic contribution. However, MAC remain concerned with the low pay that continues to be embedded further within the sector and are disappointed that the government have failed to respond to MAC 2022 review of the adult social care sector almost 2 years after publication.
Given the new level of salary thresholds, MAC expect that the Skilled Worker route use will be predominantly for graduate-level occupations as the levels of pay may be out of reach for many RQF 3-5 occupations, except for pay scale occupations and the social care sector which have exemptions.
WHAT JOBS ARE RECOMMENDED FOR IMMIGRATION SALARY LIST (ISL)
MAC recommend that there is both a UK-wide ISL and a specific ISL for each of the Devolved Nations.
UK-wide recommended jobs are as follows: Laboratory technicians – all non-H&CW eligible jobs (requires 3 years or more experience), Pharmaceutical technicians – all non-H&CW eligible jobs, Stonemasons and related trades – all jobs, Bricklayers – all jobs, Roofers, roof tilers and slaters – all jobs, Construction and building trades not elsewhere classified – add only "retrofitters", Animal care services occupations not elsewhere classified – add only "racing grooms", "stallion handlers", "stud grooms", "stud hands", "stud handlers" and "work riders", Care workers and home carers – private households or individuals (other than sole traders sponsoring someone to work for their business) cannot sponsor Skilled Worker applicants in non-H&CW eligible jobs*, Senior care workers – all non-H&CW eligible jobs*, Biological scientists – all non-H&CW eligible jobs, Social and humanities scientists – only archaeologists, Artists – all jobs, Dancers and choreographers – only certain specified jobs, Musicians – only skilled orchestral musicians who are leaders, principals, sub-principals or numbered string positions, and who meet the standard required by internationally recognised UK orchestras, Arts officers, producers and directors – all jobs, Graphic and multimedia designers – all jobs, Welding trades – only high integrity pipe welders, where the job requires 3 or more years related on-the-job experience., Carpenters and joiners – all jobs, Laboratory technicians – all H&CW eligible jobs (requires 3 years or more experience), Pharmaceutical technicians – all H&CW eligible jobs, Care workers and home carers and Senior Care Workers.
Scotland recommended jobs are as follows: Managers and proprietors in forestry, fishing and related services – add only "fishing boat masters", Boat and ship builders and repairers – all jobs, Chemical scientists – only jobs in the nuclear industry.
JOBS NOT RECOMMENDED FOR IMMIGRATION SALARY LIST (ISL)
Occupations not recommended for the ISL due to risk of migrant exploitation: Agriculture and fishing trades not elsewhere classified – only jobs in the fishing industry, Fishing and other elementary agriculture occupations not elsewhere classified – only deckhands on large fishing vessel (9 metres and above).
Occupations ineligible for the ISL as the previously submitted evidence on efforts to alleviate shortage was deemed unconvincing: Plasterers – all jobs.
THE MAIN BENEFIT OF INCLUSION ON THE IMMIGRATION SALARY LIST (ISL)
The main benefit of inclusion on the ISL is an up to 20% reduction on the general thresholds. Roles on the ISL also have marginally reduced visa fees which amounts to a discount of roughly £60 per year. Roles on the Health &Care visa already have lower associated visa fees and therefore do not benefit from the ISL visa fee reduction.
Pay scale occupations do not receive any meaningful benefit from ISL inclusion, as their occupation-specific thresholds are in all cases above the £23,200 general threshold that applies to all pay scale occupations. On that basis, occupations that are on a pay scale have been excluded from the ISL in this review.
THE ROLE AND PURPOSE OF THE IMMIGRATION SALARY LIST (ISL)
The government will need to consider the benefits and function of the Immigration Salary List (ISL) in advance of MAC's full ISL review. For this Rapid review MAC have assumed that the main benefit of inclusion on the ISL is to allow employers to recruit migrants on a salary below the general threshold – with the discount being a maximum of 20%.
MAC stated that they require further clarity from the government on what the benefits and longer-term purpose of the ISL will be. It is important for the government to lay out the role it wants the ISL to play within the wider immigration system. For example, is the primary purpose of the ISL to fill shortages in the short term with overseas labour? Or is the ISL being implemented for a wider purpose, for example, to support government priority sectors and broader government policies?
MAC also request that the government specify any further benefits an occupation will receive as a result of being included on the ISL. For example, will occupations placed on the ISL still benefit from slightly lower visa fees?
First, because the general threshold has now been redefined for SW non-H&CW occupations to be the median salary of eligible occupations rather than the 25th percentile, this will mean that for many occupations, particularly at the RQF3-5 level, even the ISL-reduced threshold will be above the salaries paid for the vast majority of workers in that occupation. For example, veterinary nurses (SOC 2020 code 3240), which are not on a national pay scale, have a median salary of £24,400 and therefore, even if placed on the ISL, would struggle to use the SW route given the ISL threshold would be £30,960. The new general threshold in effect will mean that the SW route becomes unavailable for many occupations.
Second, MAC recommended the abolition of the going rate discount in our 2023 SOL review because they were concerned that allowing employers to pay below the 25th percentile of salaries in an occupation could lead to undercutting of domestic workers and exploitation of migrants. Whilst the government have accepted this recommendation, they have at the same time redefined the occupation-specific threshold to be the 50th percentile (for non-H&CW occupations). This, however, substantially weakens the rationale for not being able to pay below the occupation-specific threshold as half of all workers in an occupation earn less than the median and this does not obviously lead to undercutting and exploitation. MAC encourage the government to consider this impact of the rule's changes.
NEW ENTRANT THRESHOLD
The government has announced that, for now, the new entrant discount available for those aged 26 and under will continue. In its current form, this discount provides a 30% discount on the occupation-specific threshold and a 20% discount on the general salary threshold, the higher of which must be paid. Employers may take advantage of the new entrant discount (more than they have historically done) as the increased salary thresholds will make this discount more attractive and for some occupations may be the only way to recruit migrant workers on the Skilled Worker route. Given the increased incentive to use the discount as a result of higher salary thresholds, we encourage the government to consider this impact of the rule changes on the use of new entrant discount.
USE OF ISL BEYOND THE SKILLED WORKER ROUTE
In MAC's 2023 SOL review, MAC highlighted 2 areas where the SOL was used in other parts of the immigration system and would need review if the SOL itself was changed.
- Asylum Seekers: Current rules require that asylum seekers who have been granted permission to work can only work in roles on the SOL. We recommended in our 2023 SOL review that, if granted the right to work, asylum seekers should be able to work in any job and failing this any job eligible for the SW route.
- Creative Workers: The Creative Worker (CW) visa currently allows employers to waive a labour market test associated with this visa if the relevant occupation is on the SOL. We recommended removal of this reference to the SOL and to remove the labour market test. We also recommended that the Home Office attached a minimum salary threshold to the CW visa, to ensure there is no economic advantage in using this visa to pay lower salaries compared to the SW route for the same job.
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