A Points-Based System: Making Migration Work for Britain ... · A Points-Based System:Making Migration Work for Britain A points-based system: Five Tiers 9. Underpinning the new system

A Points-Based System:Making Migration Work for Britain

A Points-Based System:Making Migration Work for Britain

Presented to Parliament by the Secretary of State for the Home Department,by Command of Her Majesty

March 2006

Cm 6741 £11.00

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ForewordCharles Clarke

Achieving greater public confidence in theimmigration system remains one of my toppriorities as Home Secretary. It was this aimthat was the driving force behind the five yearstrategy for asylum and immigration1 published ayear ago. Since the launch of the strategy wehave made significant progress on achieving thataim.The number of failed asylum seekers beingremoved continues to increase and the numberof asylum applicants continues to fall. A phasedroll-out of the e-Borders programme andfingerprinting of visa applicants is underway.However, we still have a long way to go.That iswhy I am so pleased to be able to launch thepublication of my policy for a points-basedsystem which is the most significant change tomanaged migration in the last 40 years.Thenew points-based system will enable us to setout more clearly who we allow to come into thecountry and on what basis they are allowed in.

The UK needs a world class migration systemto attract the brightest and the best from acrossthe world, while at the same time being morerobust against abuse.We welcome people whocome to this country to work and to study butwe need to ensure that they come herelegitimately.That is why I am so pleased todayto be able to publish this points-based systemfor the UK. It will revolutionise the way inwhich migration into this country works. Bysimplifying the current complex system in thisway we can ensure that only those wholegitimately apply and have the necessary skillscan come to this country.

I am pleased with the level of engagement therehas been with the development of the policy onthe new points-based system since we publishedthe consultation document last July.We can onlydevelop a managed migration system that worksin partnership with those who actually use thesystem at the moment, and so I welcome theconstructive and often creative input from thosewho have contributed formally and informallyto the consultation.

I believe that this new points-based system will allow employers and those in educationalinstitutions to take ownership of migration tothis country.They, rather than just the HomeOffice alone, will be able to vet who comesinto the UK according to the skills and talentsof individuals they feel they need to enhancetheir sector.

Migration is of enormous benefit to a country,when it is managed properly. I believe this newpoints-based system will allow us both tomanage migration and secure our bordersagainst those who want to abuse them.

CHARLES CLARKE

1 Controlling Our Borders: Making Migration Work for Britain, Five Year Strategy for Asylum and Immigration.

Contentspage

Executive Summary 1

Introduction 5

Background 5

Benefits of migration: a new debate 5

Scope of the points-based system 6

International relations 6

The current system 7

The benefits of change 9

What benefits are we trying to deliver? 9

Who will benefit from the new system? 10

Benefits of the sponsorship relationship 10

Tests for design of the new system 11

The consultation exercise 13

Architecture of the new system 15

Using points for structured decision-making 15

The application process 16

Awarding points 16

The advantages of points:Structured decision-making 17

The advantages of points:Trade-offs between points 17

Interpreting the points criteria 18

Administrative review 18

Sponsorship 19

The policy 19

Certificates of sponsorship 19

Approved sponsors 20

Responsibilities of sponsors 20

Rating sponsors 20

Financial securities 21

page

Tier 1 – Highly-skilled migrants 21

Consultation responses 22

Proposals 22

Current points model for Tier 1 22

Impact of this points-based system 23

Other categories under Tier 1 24

After entry: entitlements and leave 24

Tier 2 – Skilled workers with job offer 25

Consultation responses 25

How will Tier 2 work? 25

After entry: Entitlements and leave 25

Current points model for Tier 2 25

Intra-Corporate Transfers (ICTs) 26

The Resident Labour Market Test 27

Auctions 27

Skills Advisory Body (SAB) 27

Response to consultation 27

Structure of the SAB 28

Scope of the SAB 28

Decisions on labour market needs 28

Regional flexibilities 28

Tier 3 – Low skilled migration 29

Response to consultation 29

The numerical context 29

Terminating existing schemes 30

The policy 30

Identifying shortages 31

Tier 4 – Students 31

Tier 5 – Youth Mobility and Temporary Workers 33

Youth Mobility 33

Temporary Workers 34

Costs of administering the system 37

Next Steps 39

Annex 41Analysis of consultation responses

1

Introduction

1. This document sets out the Government’sproposals for a new points-based approach tomanaging the flow of migrants coming to theUK to work or study. It forms part of the fiveyear strategy for asylum and immigrationpublished in February 2005:“Controlling OurBorders: Making Migration Work for Britain, FiveYear Strategy for Asylum and Immigration”.

2. These proposals have been subject toextensive consultation following the publicationin July 2005 of the consultation document“Selective Admission: Making Migration Work forBritain.” The proposals have been informed andenhanced by the contributions made to thatconsultation. A summary of the consultationresponses is attached as an annex to thisdocument. A summary of the responses foreach sector is available on the Home Officewebsite at www.ind.homeoffice.gov.uk.

Benefits

3. The key outcomes of the new system will be:

• Better identifying and attracting of migrantswho have most to contribute to the UK;

• A more efficient, transparent and objectiveapplication process;

• Improved compliance and reduced scopefor abuse.

These will help deliver high-level benefits for the UK including increased economic competitiveness and cultural exchange.

4. Applicants will find the system simpler to understand and the rules for entry clearerand more consistently applied. It will be quickerand simpler for employers and educationalinstitutions to bring in the migrants they need,and there will be more certainty about whetherprospective migrants will be able to come to theUK.The public will better be able to understandwho we are allowing into the UK and why, andhave confidence that the system is not beingabused. It will also be more straightforward for entry clearance officers and caseworkers to administer.

Managing migration

5. All the main political parties, employers’organisations, trades unions and educationalinstitutions agree that migration is vital for our economy. Migration makes a substantialcontribution to economic growth, helps fill gaps in the labour market, including key publicservices such as health and education, andincreases investment, innovation andentrepreneurship in the UK. Culturally,we are enriched by people with diversebackgrounds from other countries.

6. With an expanded European Union there is an accessible and mobile workforce alreadycontributing to our growing economy, closingmany gaps experienced by employers. In achanging environment where our Europeancommitments provide many opportunities forthe UK to benefit from this new source oflabour, it is right that we look again at migrationto the UK as a whole. Our starting point is thatemployers should look first to recruit from theUK and the expanded EU before recruitingmigrants from outside the EU.

7. Migration needs to be properly managed.It is understandable that people migrate to seeka better life for themselves and their families.But this can leave settled populations, includingmany in the UK, concerned about the impacton jobs, public services and their way of life.The system should therefore be focusedprimarily on bringing in migrants who are highlyskilled or to do key jobs that cannot be filledfrom the domestic labour force or from theEU. It should also help facilitate the entry ofinternational students who rightly see the UKas a world leader in the provision of higher andfurther education, and in the teaching of English.

8. It should also be robust against abuse. Onlythose of benefit to the UK should be admittedand once here they must comply with theconditions of their leave.Those who benefit frommigration, employers and educational institutions,should work with Government to ensure this isthe case. Strong action should be taken againstthose who seek to abuse the system.

Executive Summary

2

A Points-Based System: Making Migration Work for Britain

A points-based system:

Five Tiers

9. Underpinning the new system will be a five Tier framework.This will help peopleunderstand how the system works and directapplicants to the category that is mostappropriate for them.

• Tier 1: Highly skilled individuals tocontribute to growth and productivity

• Tier 2: Skilled workers with a job offer to fill gaps in UK labour force

• Tier 3: Limited numbers of low skilledworkers needed to fill specific temporarylabour shortages

• Tier 4: Students

• Tier 5:Youth mobility and temporaryworkers: people allowed to work in the UK for a limited period of time to satisfyprimarily non-economic objectives

Points and structured decision-making

10. For each Tier, applicants will need sufficientpoints to obtain entry clearance or leave toremain in the UK. Points will be scored forattributes which predict a migrant’s success in the labour market, and/or control factors,relating to whether someone is likely to comply with the conditions of their leave.

11. Points will be awarded according toobjective and transparent criteria in order to produce a structured and defensibledecision-making process. Prospective migrantswill, prior to making their application, be able to assess themselves against these criteria,reducing the number of speculative anderroneous applications.

Sponsorship

12. All applicants in Tiers 2-5 will need toprovide a certificate of sponsorship from anapproved sponsor when making theirapplication.The certificate of sponsorship will act as an assurance that the migrant is able to do a particular job or course of studyand intends to do so.The sponsor’s rating, anexpression of their track record or policies in sponsoring migrants, will determine whetherapplicants receive more or fewer points fortheir certificate.

13. In order to sponsor migrants, employersand educational institutions will need to makean application to the Home Office, satisfy therequirements for the particular Tier in whichthey wish to sponsor migrants, and acceptcertain responsibilities to help with immigration control.

Financial securities

14. In due course, financial securities will berequired of those whose personal circumstancesor route of migration suggests that they presenta high risk of breaching the immigration rules.

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Executive Summary

Next steps

15. The new system will be introduced in aphased manner Tier by Tier.We will be testingthe processes that underpin the proposalsbefore any firm implementation dates areannounced.We will be carrying out impactassessments of the proposals before they areimplemented.

16. We are always keen to hear the views ofour customers and stakeholders and encourageyour participation in helping us with the nextstages of development. If you have anycomments on the new system please let ushave them.We will be running events andworkshops over the coming months to answeryour questions and to discuss the timing ofimplementation. For further information pleasecontact us on 0114 207 4074 or visit ourwebsite at www.ind.homeoffice.gov.uk.You can also email us at:[email protected].

Summary of routes

I am currently In the new system you could apply under

Thinking about applying under the Tier 1Highly Skilled Migrant Programme

A work permit holder in a shortage occupation Tier 2

A work permit holder in a Tier 2 but you will need to demonstrate the non-shortage occupation necessary skill and salary levels for this Tier

Wanting to come to the UK temporarily Tier 3 but you will have to be from a countryto do low-skilled work which has effective returns arrangements

with the UK and find a placement with an approved operator

A student looking to come to the UK to study Tier 4

Wanting to come to the UK for a working holiday Tier 5 Youth mobility

A musician coming to play a concert or series Tier 5 Temporary workerof concerts

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5

2 This and all other attributed quotes in the document are taken from responses to the consultation document,unless otherwise attributed.

3 Labour Force Survey, average for four quarters 20044 HMT Parliamentary Question May 2002 based on Labour Force Survey figures

Background

In February 2005, the Government published“Controlling Our Borders: Making Migration Workfor Britain, Five Year Strategy for Asylum andImmigration”.This followed a top to bottomreview of managed migration routes, with theaim of making them easier to navigate forcustomers and employers, and more robustagainst abuse.The document mapped outproposed changes, including a new points-basedsystem for managed migration. In July 2005 theGovernment initiated a consultation on the newpoints-based system, and published a consultationdocument entitled “Selective Admission: MakingMigration Work for Britain”. After speaking toover 1200 people representing a range ofsectors across the UK as well as overseas, andreceiving a large number of written submissions,the consultation closed in November 2005.This is the Government’s response to thatconsultation, and sets out the next steps indeveloping a points-based system for managedmigration to the UK.

Benefits of migration:a new debate

“The benefits of migration pay for its costs.The UK’s thoughtful migration policy andflexible, efficient work permit process aresignificant competitive advantages for itsbusinesses and economy. By allowing the UKto draw from the global talent pool, migrationhas contributed significantly to London’ssuccess as a top global financial centre, aswell as making it one of the most dynamic,culturally diverse, stimulating cities in which to live and work.”

Goldman Sachs International2

2. The consultation document set out in somedetail the benefits which migration brings tothe UK. In summary, migrant workers on averagehave higher skills and command higher salariesthan British-born workers3.They contributedisproportionately to the economy (figures for2001 show that migrants in the UK generate10% of GDP while forming 8% of those inemployment4). As well as economic benefits,migration brings cultural and social benefits,contributing to the diversity of modern British society.

3. The five year strategy was a continuation ofthe Government’s aim to have a more maturedebate on migration. It mapped out clearly thebalance that the Government wants to achievebetween allowing migration where it benefits theUK and preventing it where it does not, and theimportance of those institutions which benefitfrom migration sharing responsibility with theGovernment for the migrants they sponsor.Responses to the consultation exercise, anddiscussions with stakeholders throughout theconsultation period, have demonstrated thatthe benefits of migration are felt throughoutthe UK.There are also concerns about theimpact of migration on the UK, for example on UK workers who have difficulty in findingemployment, and these are addressed in moredetail in the relevant sections in this document.But the overriding message from stakeholdershas been that a properly managed migrationsystem, in which the public can have confidence,is a good and indeed necessary thing for the UK’s continued economic growth. TheGovernment’s aim is summed up in the PrimeMinister’s foreword to the five year strategy:“The challenge for the Government is to maintainpublic confidence in the system by agreeingimmigration where it is in the country’s interestsand preventing it where it is not.” This is the aimthat the new points-based system for managedmigration seeks to deliver.

Introduction

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Scope of the points-based system

4. The points-based system will be designed to set the criteria under which nationals ofcountries outside the EU (European Union) andEEA (European Economic Area) will apply tocome to or remain in the UK to work, train orstudy.Those who wish to come to the UK tojoin family members through routes such asmarriage will not be covered by the points-based system. Existing UK Ancestry and ECAA(European Community Association Agreements)will be outside the points-based system, as willBusiness Visitors and a small number of veryspecific routes involving internationalagreements such as those under contract toNATO. All other existing routes to work,train, or study will be replaced by the newpoints-based system.

International relations

5. As was made clear in the Five Year Strategy,in a spirit of partnership we have put immigrationat the centre of our relations with all majorcountries from which failed asylum seekers andillegal migrants come.We leave partners in nodoubt that accepting return of their nationals isa duty and failure to do so has implications forour wider relationship. In some cases, migrationschemes will not be available to countrieswithout effective returns arrangements with theUK. Our policies are out in more detail in thesections on Tiers 3 and 5: youth mobility.

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5 Dench, S.et al (2006) Employers’ use of migrant labour – summary report Home Office On Line Report OLR 03/06 , London: Home Office.

6. The Immigration Rules are the statement of practice as laid before Parliament to regulatethe entry and stay of people subject toimmigration control in the UK.They covervisits, study, work, family reunion, asylumprocedure, and removal and deportation.TheRules were last consolidated in 1994 and haveundergone nearly 50 separate changes since then.There are currently more than 80 differentroutes by which a non-EEA national can cometo the UK for work, study or training. Most ofthese are provided for by the Rules but someare concessions outside the Rules or otherconcessionary arrangements (e.g. the DTIInternational Secondment Scheme or theInternational Fire-fighters Fellowship).

7. As a result, this is not a system that is always easily understood by those who seek to use it or by the public. Furthermore, it is nota straightforward one to administer.There isscope for inconsistency and incorrect decisions.Entry Clearance Officers abroad, ImmigrationOfficers at ports and Home Office caseworkersare often required to assess applicants’intentions, which is necessarily a subjectiveprocess.The lack of clarity and objectivity inthe system fosters unfounded applications(both intentional and unintentional) and createsburdens for potential applicants, employers andeducational institutions.The system can beinefficient: for example the two-stage processfor a migrant to obtain a work permit, wherethe employer can be granted a work permit butthe prospective migrant can subsequently beturned down for entry clearance or leave toremain in two completely separate decisionsbased on different criteria. In summary, thecomplex set of routes, combined withsubjective and bureaucratic decision-makingprocesses, is inefficient for the Home Officeand users of the system.

8. Responses from employers to theconsultation exercise show that they generallyfind the work permits system to be well run andfrequently have good relationships with staff inWork Permits (UK) which they appreciate. Buthowever well run the system might be, thedesign and processes are often found to bebureaucratic.This is not something that can beovercome by efficient and effective processingof cases. As shown above, in response to theconsultation exercise, 75% of the respondentsto question 3 of the consultation exerciseagreed that the current system is too complexand bureaucratic. From a Home Office reportof research conducted by the Institute forEmployment Studies on Employers’ use ofmigrant labour,5 it is apparent that the design of the work permits scheme is found to beinefficient by employers. Employers said thatthe process is time-consuming, bureaucratic,cumbersome and difficult to understand. Inaddition, employers commented that there isno guarantee of success, so that time and effortspent applying for a work permit where theapplicant is then turned down for a visa isfrustrating. Even where applications weresuccessful the procedure was still deemed tobe lengthy and inefficient; this goes to theunderlying scheme design.

The current system

Yes 75% No 25%

Selective Admission consultationdocument question 3: Is the currentsystem too complex and bureaucratic?

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9. Because the system has developed over time in a piecemeal fashion, it is hard to knowwhether overall it is delivering the migrantsthat the UK wants and needs. Because it iscomplex and difficult to use, it does not reflectthe UK’s competitive position in the globaleconomy as a destination for the brightest andbest migrants. Provisions around dependants orthe maximum length of leave often differsubstantially across similar categories. All thismeans that the system is not doing as well as itcould in identifying and attracting the migrantswho are of most benefit to the UK.

10. There are also categories which addressedthe UK’s needs for migrants when they wereset up, but are no longer widely used orneeded. For example, there is a specific routewhich enables certain doctors and dentists tocome to the UK to train, even where they donot have a training post for the full duration oftheir study (postgraduate doctors and dentists).Due to the increasing number of graduatesfrom UK medical schools, and the reform ofthe training structure, the UK no longer needsto train so many overseas nationals in theseprofessions.We will therefore no longerprovide a specific route for overseas-qualifieddoctors and dentists to train in the UK. If thereare relevant posts available, and no residentdoctors or dentists to take them up, fullytrained overseas doctors and dentists will stillbe able to apply to come to the UK to fillthese vacancies.

11. Currently, the relationship between somemigrants and their employer or educationalinstitution means that organisation need nottake any responsibility for ensuring thatmigrants will comply with their conditions ofstay. As things stand, a student can gain entryclearance on the basis of an offer letter from auniversity or college, but, providing that he orshe is actually studying in the UK, there is norequirement that the student should actuallyattend the institution on the basis of whoseoffer the entry clearance was granted.The current system is not clear about theresponsibilities of those who seek to bringmigrants to the UK, which limits theeffectiveness of the existing compliancemanagement regime.

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12. The previous section on the currentsystem identifies three main problems: noteffectively identifying and attracting themigrants of most benefit to the UK; complex,subjective and bureaucratic processes; andscope for improvement in compliancemanagement and reducing abuse.This sectionsets out how a new managed migration systemcould deal with these problems and so delivergreater benefits for the UK.

“There are clear potential benefits tosimplifying the system, which will helpemployers to identify which migrants arepermitted to work in the UK and match them to the type of person needed for their specific vacancy.”

British Chambers of Commerce

What benefits are we trying to deliver?

13. We think that there are some high-levelbenefits that should be delivered by anyeffective managed migration strategy.These are:

Economic and internationalcompetitiveness

• Identifying, attracting and retaining those who will increase the skills andknowledge-base of the UK;

• Identifying and attracting those who will invest capital or in their education in the UK;

• Enabling employers to fill short-term gaps in the labour market;

• Contributing to the UK economy.

Cultural and social

• Identifying and attracting migrants who will enrich UK society by their presenceand act as ambassadors for the UK on their return home;

• Contributing to the success of the UKeducation sector;

• Contributing to the continuing viability of UK research activities.

Control

• Preventing those who do not meet criteriafrom getting here, and ensuring people leavewhen they are no longer entitled to be here.

Political and international development

• Increasing the skills base of the homenation on return and minimising anynegative impacts on the home nation as aresult of skills losses;

• Contributing to the economic developmentof some home nations through remittances.

Reputation

• Improving public confidence in the system;

• Improved customer service;

• Improved international standing.

These objectives were endorsed by theresponses from the consultation exercise.

14. Question 7 of the consultation documentis set out above together with its response.63% of respondents agreed that managedmigration should focus on economic benefits to the UK.

The benefits of change

Yes 63% No 37%

Selective Admission consultationdocument question 7: Do you agree thatthe objectives of the managed migrationsystem should be focused primarily oneconomic benefit to the UK?

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15. Question 8 of the consultation documentasked: If managed migration were intended tomeet non-economic benefits what should they beand how would you measure them? Comments inresponse to this question identified that thesystem should consider diversity, integrationinto society, culture, and movement of people.A range of non-economic objectives weresuggested, the most common being cultural,intellectual, joining of families, social integration,and enhanced reputation of the UK.

16. Family reunification routes are not withinthe scope of the points-based system which isabout work and study. But with the exception of joining of families, these objectives are allexplicitly met by the high-level benefits set outabove. A properly managed migration system, inwhich the public can have confidence and whichdelivers migrants who are seen to make asignificant contribution to the UK, will contributeto a positive view of migration and thus tosocial integration.

Who will benefit from the new system?

17. Migration has benefits for society and forindividuals, and the new points-based systemwill make it easier to realise those benefits.The new system will enable a prospectivemigrant to self-assess online before he makesan application, thus helping him to identify theTier which is most appropriate for him andsaving him the cost and time of a wastedapplication should he not have sufficient points.This will also make life easier for educationalinstitutions and companies wishing to employmigrants, since they will have more certaintythat the migrants they select will be able toenter the UK.

18. For an employer wishing to employ amigrant worker, the system will be simpler and less bureaucratic. At present, the employerapplies to Work Permits (UK) for a work permit,and if this is approved the prospective migrantthen has to make an application for entryclearance overseas, which might be refused.If this happens, the employer has to start theprocess again by recruiting a different migrantworker and applying for a new work permit.Under the new system, the employer can issuea certificate of sponsorship to the migrantworker they have chosen, and the migrant canthen make an application for entry clearanceoverseas. If the employer is a highly ratedsponsor, then it is more likely that the chosenmigrant’s application will be successful.Theemployer could further increase the certainty

by discussing the self-assessment tests with theprospective migrant before issuing the certificateof sponsorship, to be sure that the migrant waslikely to pass them.

19. An educational institution wishing to give a place to an overseas student will find the newsystem provides far more certainty. Under theexisting system, a student can apply for a visaon the basis of an offer letter from a giveninstitution, but can then choose to study at adifferent institution.This means that institutionscannot in advance of enrolment plan for exactlyhow many international students they are likely to have. Under the new system, astudent’s leave to be in the UK will be tied to a specific institution.

Benefits of the sponsorship relationship

20. Institutions and employers bringingmigrants to the UK will now be designated assponsors. Sponsors will be at the heart of thenew system and will have a formal role in theprocess.Trustworthy sponsors will find thesystem easier and less bureaucratic.They willalso benefit from a close and customer-focusedrelationship with the Home Office.

21. The new system will make it easier forprospective migrants to see whether they arelikely to qualify to come to the UK before theyspend time and money on making an application.The migrant will also benefit from a closerelationship with his prospective sponsor. At aminimum level, the sponsor will need to besure that the prospective migrant is able andintends to carry out the job or course of studyfor which he is being sponsored. But there ispotential for the sponsorship relationship to be much stronger than that.

22. The sponsor could discuss the applicant’sself-assessment responses with the applicantbefore issuing a certificate of sponsorship andpossibly help to overcome any potentialdifficulties: for example, an employer under Tier2 might want to offer an advance of salary tocover any potential problems with availablefunds.This would provide additional certaintyfor the sponsor that the migrant would pass thepoints requirements, and would help the migrantto be sure that he passed the threshold beforemaking an application. Similarly, employers andeducational institutions might choose to paythe migrant’s application fee in the firstinstance, claiming it back over time from salaryor adding it to overall fees for a course.

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The benefits of change

23. This could be a radical new approach tomigration and sponsorship, encouraging sponsorsto work more closely with migrants to ensureproperly prepared applications, as well as astronger relationship with the Home Officeover immigration matters.

Tests for design of the new system

24. In the consultation document, SelectiveAdmission, we set out eight proposed tests forthe design of the new system.The wording usedin the consultation document is used below forreference. Consultation question 9 asked:How would you rank the proposed tests in order of priority?

The response was as follows:

1.Objectivity

• That attributes of applicants and needs of the UK are defined in a factual way(minimising subjectivity, inconsistency, anderror); and the ability to evaluate similarapplicants so that those with the sameattributes receive the same entitlements.

2.Transparency

• The ability for the Government, potentialmigrants, and other stakeholders tounderstand how each step of the processworks, and for migrants to self-select.

3.Operability

• The ability for Government employees touse the system as it is specified, with littleroom for human error.

4.Usability

• The ability for different types ofcustomers, employers and migrants to usethe system.

5.Flexibility

• The ability to respond to a changinglabour market, in terms of both supply ofand demand for migrants; and the abilityfor the process to be modified due to theparticular characteristics (e.g. risk factors)of particular applicants.

6.Robustness

• The ability to detect and minimise abuseof the system.

7.Cost effectiveness

• The ability to process applicants at areasonable cost (i.e. which the applicantswill be prepared to pay) whilst stillmaintaining quality of assessment.

8.Compatibility

• With EU and other legislative requirements:the ability to meet legal and anyconvention requirements, and to berobust enough to withstand challenge.

25. The section on the current system and the need for change sets out the three mainproblems with the current system: noteffectively targeting the migrants of mostbenefit to the UK; complex, subjective andbureaucratic processes; and scope forimprovement in compliance management and reducing abuse. A new system whichaddressed these problems would deliver the following outcomes:

• Better identifying and attracting of migrantswho have most to contribute to the UK

– Meeting the test of flexibility (5)

• A more efficient, transparent and objectiveapplication process

– Meeting the tests of objectivity (1),transparency (2), usability (4),operability (3) and cost effectiveness (7)

• Improved compliance and reduced scopefor abuse

– Meeting the test of robustness (6).

The new system for managed migration will be designed to meet the test of compatibilityby being consistent with internationallegislation. As well as delivering flexibility forthe UK labour market, the scheme will beflexible enough to take account of globalmigration trends and the overall impact ofmigration on developing countries.

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26. In summary, the new points-based systemfor managed migration will deliver these benefitsand meet these tests for design by makingchanges to the existing system:

From: To: Tests met: Benefits delivered:

A large number of A coherent and flexible • Transparency • Economic andschemes that have 5 Tier system that is • Usability • internationalevolved to meet explicitly designed to • Flexibility • competitivenessparticular needs as deliver on the UK’s • Cultural and socialthey have arisen. economic and • Political and

control objectives. • international• development• Control

A two-stage process, A single interface and • Transparency • Reputationwhere immigration issues application process for • Operability • Economic andare assessed by visa all applicants. • Usability • internationalissuing posts abroad and • Cost • competitivenessemployment qualifications • effectivenessare assessed by Home Office in the UK.

Decision based on a Decisions made using an • Objectivity • Controlwide range of entry expanded points-based • Transparencycriteria, some of which system and other objective • Operabilityare subjective, and criteria where possible, • Usabilitytherefore have recourse thus providing moreto appeal. consistency, and supported

by administrative reviewwhere appropriate.

Limited mechanisms for Greater control through • Robustness • Controladdressing abuse of sponsors, operators andcurrent system. financial securities.

An understanding of A comprehensive analysis • Flexibility • Economic andskills shortages for of shortages by sector, • Objectivity • internationalsome sectors. provided by a new • competitiveness

Skills Advisory Body.

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27. The consultation exercise ran from thepublication of the consultation document:Selective Admission: Making Migration Work for Britain on 19 July until 7 November 2005.This was a total of 16 weeks, longer than theusual consultation period of 12 weeks.TheGovernment chose to do this in response to a request by the Joint Education Taskforce whosaid that otherwise too great a portion of theconsultation would take place during thesummer holidays.

28. The process of active consultation beganwith a Work Permits (UK) event in London on the 5th and 6th September, where theImmigration Minister Tony McNulty gave thekeynote speech, and officials from the HomeOffice and UKvisas were available to discussthe proposals in the consultation document andto take questions.Throughout October, we rana number of sector-based consultation events inLondon and the regions, enabling Home Officeand UKvisas officials responsible for thedevelopment of the new policy to meet over1200 stakeholders face to face to discuss the proposals.

29. We are particularly grateful to therepresentative bodies of the Joint EducationTaskforce that facilitated a number of events onbehalf of their members: Universities UK, theAssociation of Colleges, English UK, and theNational Union of Students, and to the otherstakeholder organisations who facilitated eventsduring the consultation period.

30. The Institute for Public Policy Research(IPPR), sponsored by the Home Office, ran twoexpert seminars in London and Edinburgh todiscuss the economic impacts of migration andthe potential effects of the new proposals withspecific focus on skills as well as regionalmigration.These gathered together a significantamount of academic and stakeholder expertise,as well as Home Office representatives, for twointensive half-day sessions.Workshop sessionswere also held with the Illegal WorkingStakeholder Group which comprises keystakeholders from relevant UK commercialsectors, representatives of employers, unions,migrant workers and minority communities, andofficials from Government departments.

31. Steps were also taken to ensure that ourinternational partners are aware of ourproposals and were able to contribute. A briefingevent was held at Lancaster House for Londonrepresentatives of foreign governments, toinform them of the Government’s plans andgive them an opportunity to comment. Seminarswere also given in Delhi and Beijing, since Indiaand China are two of the major sources ofeconomic migration to the UK. In addition we have explored how a number of othercountries operate their migration systems and we are grateful for the co-operation and assistance we have received from ourinternational partners.

32. Staff in the Home Office and UKvisas whowill implement the changes to the immigrationsystem were also actively consulted. A series of events was run in the UK and overseas,providing face to face briefings on the proposedchanges and seeking comments from staff,including two workshops attended by theImmigration Minister,Tony McNulty, in Croydonand Sheffield. Staff were also given opportunitiesto submit their comments in writing; theircomments and feedback have been includedin the overall analysis published as an annexto this document.

33. In addition to this and other face to facecontact, we have also considered the externalwritten responses to the consultation exercise.The consultation document was sent to 2400people and 517 responses have been receivedin total. A number of these were from large,umbrella organisations which represent anumber of different groups. For example ILPA(Immigration Law Practitioners’ Association) is a professional association with some 1200members, while the TUC response was drawnup in consultation with its 67 affiliated unionswho between them have 6.4 million members.

34. A summary of the consultation responsesis the Annex. A summary of the responses bysector is available on the Home Office websiteat www.ind.homeoffice.gov.uk.

The consultation exercise

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35. Central to the design of the new system isa new five Tier framework covering the mainroutes through which people coming to work,study or train will enter the UK; a points-basedapproach to determining which migrants will besuccessful with their applications; and a greaterrole for sponsors in ensuring that the system is not being abused. In due course, a system of financial securities will be introduced inareas where there is evidence of the highestrisk. Each of the Tiers will have its own clearrationale, criteria for entry, set of entitlements,and rules on switching.The new system willcomplement other programmes being developedby the Home Office and UKvisas such as e-Borders and the greater use of biometrics.

36. The new five Tier framework will helppeople understand how the system works anddirect applicants to the category that is mostappropriate for them:

• Tier 1: Highly skilled individuals tocontribute to growth and productivity

• Tier 2: Skilled workers with a job offer tofill gaps in UK labour force

• Tier 3: Limited numbers of low skilledworkers needed to fill specific temporarylabour shortages

• Tier 4: Students

• Tier 5:Youth mobility and temporaryworkers: people allowed to work in the UK for a limited period of time to satisfyprimarily non-economic objectives

37. In order to be granted entry clearance orextend or vary their leave to remain in the UK,migrants will need to meet the specific criteriafor each Tier as set out in the revisedImmigration Rules.Tiers 1 and 2 are essentiallyabout attracting individuals who will contributeto UK growth and output, developing the UKskilled workforce and filling shortages in thelabour market.These individuals will have aroute to settlement.Those entering the countryunder Tiers 3-5 are however entering undertemporary categories where the expectation isthat people will return home at the end oftheir stay in the UK. As such, they should notbe able to apply for settlement, and apart fromstudents in Tier 4, some of whom we will wantto attract into the UK workforce, will also notbe permitted to switch into other Tiers.

38. All those who wish to enter under thepoints-based system will require prior entryclearance.This is in line with our general policyto export our borders. A simple, robust pre-entry check is fundamental to improvingpublic confidence in the system by preventingthose who do not meet the criteria fromentering the UK in the first place.

39. Visitors will sit outside the points-basedsystem.This will enable us to make a cleardistinction between those coming to the UK for work or study or to train, and thosecoming for a visit.The maximum length ofvisitor leave will remain at six months.Visitorswill not be able to switch in-country into any of the points-based system Tiers, unless theyhave clearance as prospective students anddoctors and dentists taking the Professional andLinguistic Assessment Board (PLAB) Test or totake the International Qualifying Examination(IQE). Nor will people in any of the Tiers beable to extend their stay at the end of theirleave by switching into the visitor category.

Using points for structureddecision-making

Structured decision-making, based onpoints, will be more transparent andstreamlined, delivering greater efficiencyin decision-making and more certaintyfor applicants about the outcome of theirapplication.The new system needs tobalance objectivity against the need to be robust against abuse.

“The moves towards more objective criteria for assessing applicants for work and studyare welcome as the current system with itsmix of objective and subjective assessment is administratively problematic and oftenprovokes resentment among applicants whoare denied visas.Two prospective studentsfrom similar backgrounds seeking to enter the same programmes with proven financialsupport can find that one of them is granteda visa and the other is refused.”

Universities UK

Architecture of the new system

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40. Benefits will accrue from the new points-based system not just because of who it allowsin, but also because of how those people areselected. Particularly important in this contextare the principles that the new system should beclear and user-friendly, and based on objectiveand transparent criteria.These are the principlesbehind using a points-based system for structureddecision-making.

“Employers should also be able to expect thatthe new system makes reliable and explicabledecisions that are based on publicly availablecriteria and open to scrutiny.We believe thatthe use of objective criteria, a web portal anda customer account management approachcould help achieve this.”

CBI

The application process

41. It is proposed that self-assessment will formthe first step of the application process for allapplicants.This will be online wherever possible.Only if the applicant scores the required numberof points will an application to a post overseasor to a caseworker in the UK be made.Thecompleted self-assessment will form the basisof the application, and the applicant will have toprovide independently verifiable documentationto support his application. ‘Independentlyverifiable documentation’ means documentationthat can be checked with an independent thirdparty such as, for example, a bank, in the caseof bank statements, or a university, in the caseof a degree certificate.

Awarding points

42. Points will be awarded for attributes (whichpredict a migrant’s success in the labour market)and control factors (which relate to whethersomeone is likely to comply with the conditionsof their leave). Some attributes and factors willbe requirements (i.e. the person will be refusedif they cannot demonstrate those attributes andfactors) and others will be positive indicators,where points can be gained but the person willnot be refused just because they receive nopoints in that category.

43. Points will be awarded differently accordingto Tier. For Tiers 1 and 2, points will be awardedfor attributes which measure the applicant’spotential value to the UK labour market. ForTiers 2 to 5, points will be awarded for a validcertificate of sponsorship, without which it willnot be possible to make an application. For allTiers, there will be control factors for whichpoints will be awarded such as availability offunds and previous compliance withimmigration conditions.

44. In addition, there will be certain generalgrounds for refusal, such as being subject to anexisting deportation order, which will continueto apply under the new system.There will alsobe stricter penalties for attempted use offorged or fraudulent documents.

45. The proposed control factors for whichpoints will be awarded are: certificate ofsponsorship (except for Tier 1), funds, previouscompliance with immigration conditions, andfor some categories, English language ability.The certificate of sponsorship and funds will berequirements, while the other two will befactors for which points will be awarded butwhich are not necessary for a positive decision(except for Tiers 1 and 2 where Englishlanguage is a requirement). Applicants wouldscore more points (A) or fewer points (B) foreach of these factors. It will of course remainour intention to refuse people whose presencein the UK would not be conducive to thepublic good.

46. For Tiers 1 and 2, the applicant would needto pass both the attributes test and the controltest, but for the other Tiers the control testwould be the only requirement.This places a significant emphasis on the validity of thecertificate of sponsorship, as discussed in the section on sponsorship and compliance.This will also mean that there will be a singledecision for Tiers 1 and 2, rather than thecurrent two stage process for the Highly SkilledMigrant Programme (HSMP) and work permits,where an application has to be made to WorkPermits (UK) and then a further applicationunder different criteria for entry clearance to apost overseas, or a caseworker in the UK.

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The advantages of points:Structured decision-making

47. Using points as the basis of decisions allowsus to introduce a more structured decision-making process than is currently in place.Theapplicant will have claimed points for certainfactors, and needs to provide evidence tosupport the points claimed.The decision-makerthen works through the points claimed andevidence provided for each set of points in astructured fashion.This contrasts with thecurrent system, where decision-makers receivean application form and a package of supportingdocuments which do not necessarily bear anyrelation to what is said in the application form.The decision-maker has to go through all thesedocuments to decide whether the requirementsof the Immigration Rules are met.Whileconsiderable effort is made to achieveconsistency of decision-making, it must be the case that providing a better structure for taking decisions will make it easier to achieve consistency.

The advantages of points:Trade-offs between points

48. Another advantage of points is that theyprovide a structure within which to weigh up thedifferent characteristics of an individual applicantto reach a risk-based decision.This concept isexplored in more detail in the sections on theattributes for Tiers 1 and 2, but it applies acrossthe Tiers. For example, the rating of a sponsorwill affect the number of points awarded for acertificate of sponsorship: a certificate from anA-rated sponsor will attract more points than a certificate from a B-rated sponsor.This allowsdecision-makers and applicants to weigh uprisks against each other. An applicant who candemonstrate other characteristics which makehim low risk (such as history of previouscompliance with immigration conditions) will be able to use these points to make up for thelower points associated with a B-rated sponsor,whereas a higher risk applicant might need tofind an A-rated sponsor in order to be grantedleave to enter or remain in the UK.

49. This is a good outcome for two reasons.Firstly, it means that where we have fullconfidence in a sponsor, and rate them A, weallow them more latitude in the applicants they

Examples:In Tier 1 the applicant would have to pass the attributes test (which is described in more detail inthe section in Tier 1) and the control test, which is described here.The table below shows thatEnglish language and funds are requirements, where failure to achieve them is an automatic failure,while previous compliance with immigration conditions is something for which points can beawarded but where failure to achieve points in this category does not automatically lead to failureof the application overall.

In the tables below, ‘X’ indicates a possible outcome. ‘†’ indicates an outcome which is notpossible, i.e. it is not possible to receive an automatic fail in the second example for failure toachieve points for English language.

A (more points) or B (fewer points) or Automatic fail

English language X X X

Funds X X X

Previous compliance with immigration conditions X X †

Another example is Tier 4, where a valid certificate of sponsorship is also a requirement,but English language is not:

A (more points) or B (fewer points) or Automatic fail

Certificate of sponsorship X X X

Funds X X X

Previous compliance with immigration conditions X X †

English language X X †

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can sponsor than those sponsors in whom wehave less confidence. Secondly, it will encourageapplicants to seek out A-rated sponsors, whichin turn will encourage sponsors to comply withsponsorship requirements in order to becomeA-rated.

Interpreting the points criteria

50. In order for the applicant to self-assessaccurately, and for the factors used in making a decision to be transparent, the applicant and decision maker must be using the sameinterpretations of what the different factors(i.e. the attributes and the control tests) mean.To achieve this, we intend to write descriptorsfor each of the criteria. Descriptors willdetermine what would be required to score an A or a B against each of the factors.Applicants and decision-makers will score the application against the same descriptor.This means that the descriptor needs to beclear and transparent while providing aframework to allow decision-makers toexercise judgement in the individual case.

51. Drafting these descriptors is a difficultchallenge and will take time to get right.Theprocess has been started by bringing togetherexpertise from decision-makers in the UK andfrom posts overseas. As the descriptors aredrafted, the new points-based system fordecision-making, complete with descriptors,will be tested against live cases both in the UK and overseas, as recommended by somerespondents to the consultation document.This will allow us to see how decisions wouldbe taken on individual cases under the newsystem compared to the old system, so that wecan see what effect the new system would have,and can refine it to avoid undesired outcomes.This testing will continue as the factors anddescriptors are refined and is essential toensure that the new system is robust againstabuse and delivers the results that we want.

“We would advocate that any changes to theimmigration rules be pilot-tested.We suggest apilot that looks at all applications goingthrough the current system and being decidedunder the Immigration Rules.Thus while caseswould continue to be decided under theexisting system, it would be possible to makeshadow decisions applying the new system tosee how the new proposals worked.”

ILPA Immigration Law Practitioners’Association (ILPA)

Administrative review

“In our view it is imperative that the removal of appeal rights is not implemented until (i) the new points-based scheme has beentried and tested; (ii) the extended independentmonitoring function is operational and (iii) a system of administrative review hasbeen developed as contemplated in theconsultation paper.”

Bar Council, Law Reform Committee

52. In the Five Year Strategy we said that wewould legislate to abolish appeals for work andstudy routes for those refused entry clearanceoverseas and those refused entry at a UK portor airport. In the consultation document,Selective Admission, we said that ‘We propose toextend our independent monitoring function to helpto safeguard consistency and quality of decisions,and propose developing a system of administrativereview.’ This followed on from the Five YearStrategy in which we said ‘We will extend thecurrent independent entry clearance monitoringprocess to guard against any risk of unreasonabledecisions.’ (paragraph 33).

53. As set out in the section on points andstructured decision-making, the new points-based system should mean that immigrationdecisions made under this system are moreobjective and transparent. A number ofinitiatives are underway to improve the qualityand consistency of decision-making generally.However, we know that it is always possible formistakes to be made, which is why under thenew system we are proposing that where theright of appeal has been removed and anapplicant believes a factual error has been madein the consideration of his application by anEntry Clearance Officer, as demonstrated by thereason(s) set out for his refusal, he can requesta review of that application by a senior officer.

54. As well as this, we are strengthening therole of the Independent Monitor by making it a full time post with a remit to report on asix-monthly rather than annual basis.This willenable UKvisas to respond more quickly to anylapses in quality that might be identified in thereports.The Independent Monitor will also have time to make operational visits to a cross-section of posts for up to 3 months per year compared, in the past, to only 10 daysper year on familiarisation visits.

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Sponsorship

Instrumental to the new system issponsorship: that those who most directlybenefit from migration – employers andeducational institutions – should play a part in ensuring that the system is not being abused.

All applicants in Tiers 2-5 will need to provide a certificate of sponsorshipfrom an approved sponsor when makingtheir application.The sponsor’s rating,an expression of their track record insponsoring migrants, will then determinewhether applicants receive more or less points.

In order to sponsor migrants, employersand educational institutions will need tomake an application to the Home Office,satisfy the requirements for the particularTier in which they wish to sponsor migrantsand accept various responsibilities in relationto helping with the immigration control.

55. Under the current system employersalready have some responsibilities for informingthe Home Office if a migrant worker leavestheir job. Educational institutions need to be on the Department for Education and Skillsregister of education providers and we are inthe process of piloting the reporting of non-enrolment and discontinuation of studies.Wehowever want to build on these arrangementsto give sponsors a more formal role in thepoints-based system.

56. The overwhelming majority of respondents(82%) thought that employers, educationalinstitutions and other sponsors should have a responsibility to contribute to themaintenance of the control.This was howeverbalanced by statements that the ultimateresponsibility for policing the system lay withGovernment and that the proposals aroundsponsorship might put a disproportionatelyheavy burden on small employers.

“Sponsors need to have responsibility for whothey bring into the country and thus shouldensure they leave at the correct time. Ofcourse it is difficult to oversee this 100% of the time, so there needs to be someunderstanding in this respect.”

Helterskelter Agency Ltd.

“Users of the system do have a responsibilityto help the Government maintain the system’sintegrity – but the Government are the policeof the system and should remain so.”

CBI

“Any new regulations must be easy to complywith and employers must be supported inimplementing them, especially SMEs, whohave far fewer resources than larger firms.”

The British Chambers of Commerce

The policy

57. The policy intent underpinning sponsorshipis that those who benefit from migration – notjust the Government, but also employers andeducational institutions – should play a part inensuring the system is not being abused. Byworking together it will be possible to achievea system that delivers the migrants the UKneeds, but which also keeps out those that itdoes not. A properly managed migration systemfor the UK is a responsibility shared byGovernment and society as a whole.

Certificates of sponsorship

58. For each application in Tiers 2-5, a validcertificate of sponsorship will act as anassurance from the sponsor that the applicanthas the ability to do a particular job or courseof study, and should be regarded as trustworthyfrom an immigration perspective, i.e. is likely to comply with the conditions of their leave.This will replace the subjective tests under thecurrent immigration rules which necessitate ajudgement about whether a course is suitablefor a particular applicant, something that is best left to the educational institution, orwhether an applicant is able to do a particularjob, which an employer is better placed to judge.

59. Employers and educational institutions will therefore need to assure themselves (andthe Home Office by extension) that this isindeed the case. For many this will not beproblematic. After all, a relationship with theapplicant should already have been establishedthrough the process of offering a job or placeon a course of study either directly or throughan intermediary (such as an agent). Howeverfor others, this may involve developing newprocesses and areas of expertise.We willtherefore work with sponsors to facilitate thedevelopment of best practice.

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60. If an application is granted on the basis of avalid certificate of sponsorship, leave to enteror remain in the UK will be then granted in linewith length of contract or course, up to aspecified maximum. Migrants will only have validleave if they remain in continued employmentor study with their sponsor. Should a migrantwish to change sponsor, they will need to makea fresh application.

Approved sponsors

61. Because of the weight given to theassurances made by sponsors in the entryclearance or leave to remain process, it will be important to ensure that all sponsors arecompetent and acting in good faith. It willtherefore be necessary for all organisations thatwish to sponsor migrants to be approved bythe Home Office in order to issue certificatesof sponsorship. Prospective sponsors willtherefore need to make an application showingthat they meet the set requirements andundergo some checks before they are approved.

62. So for Tier 2 we will among other thingscheck that the employer has a trading presencein the UK and is registered with the appropriateauthorities.The requirements will be similar to what is already in place for the workpermits schemes, but with a greater emphasison the provision of verifiable documentation.Or for Tier 4, a prospective sponsor will needto demonstrate that they are a bona fideeducational institution accredited by arecognised body.

Responsibilities of sponsors

63. As well as taking on greater responsibilityfor checking the credentials of migrants they wish to bring to the UK, sponsors will be required to cooperate with the HomeOffice’s monitoring.

64. Sponsors will be required to inform us if a sponsored migrant fails to turn up for theirfirst day of work, or does not enrol on theircourse. Similarly they will be expected toreport any prolonged absence from work ordiscontinuation of studies, or if their contract is being terminated, the migrant is leaving theiremployment, or is changing educationalinstitution. Sponsors will also need to notify usif their circumstances alter, for example if theyare subject to a merger or takeover.

Rating sponsors

65. One of the criticisms we have heard of thecurrent system is that it fails to recognise thetrack record of organisations in bringing inmigrants to the UK and does not reward goodpractice. Businesses can therefore be put at adisadvantage if they carry out more checks onprospective employees or students than theircompetitors.

66. In order to address this, we will ratesponsors A or B according to their track recordand policies.This will in turn give migrants theywish to sponsor more or fewer points whenmaking their applications to us. Sponsors whoconform with all their responsibilities andwhose migrants are found regularly to complywith their immigration conditions, can expectto be rated A. Sponsors who have a less goodtrack record or could do more to improvetheir procedures, will be rated B. Sponsors willtherefore have an incentive to ensure they aredoing their best to help maintain the integrityof the control. New sponsors will be risk-assessed on a case-by-case basis before beingallocated an initial rating.

67. Failing sponsors, or those in relation towhom we have evidence of large-scale non-compliance or fraud, will be removed from the list of approved sponsors and may beprosecuted. Prior to removal, sponsors will be notified of our intentions and given theopportunity to make representations, though all applications will be suspended in the interim.

68. A-rated sponsors can therefore expect that applications from the migrants theysponsor will generally be successful and planaccordingly.They can also expect a light touchfrom us once they are established as atrustworthy sponsor. Instead we will focus ourresources on ensuring that new sponsors areproperly vetted, improving the performance ofsponsors who could be doing better, and takingstrong action against those who seek to abusethe system.

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Financial securities

The system will in due course include a system of financial securities, to berequired of those whose personalcircumstances or route of migrationsuggests that they present a high risk of breaching the immigration rules.

69. Respondents to the consultation weregenerally not in favour of the introduction of bonds or financial securities.The primaryconcern was that financial securities might be used in a discriminatory manner againstnationals from developing countries, many of whom would not be able to afford to pay a financial security.

“The NUS is very concerned by the proposal of bonds for international students. Poorerstudents will be priced out of the system,as will students on scholarships. A blackmarket of bonds might emerge. Bonds willalso disproportionately affect students fromdeveloping countries, as these are the mostlikely to be considered ‘high risk.’ It seemsunfair that poorer students should bediscriminated against, in favour of richer,developed countries students.”

National Union of Students (NUS)

70. Financial securities were also criticised on the grounds that they would act to set the price for entry into the UK. If people wereprepared to pay large sums of money to enterthe UK illegally, then such people would nothesitate at forfeiting a financial security if itenabled them to enter the country legally.

71. We have listened to these concerns.Toguard against discrimination, financial securitieswill only be included in the new system wherethere is objective management information thatdemonstrates that a particular route or migrantswithin a route are disproportionately likely tobreach their immigration conditions. Financialsecurities will not be used in isolation – migrantswill still need the necessary points and have avalid sponsor, as well as depositing the financialsecurity. It cannot therefore be said that peoplewill be buying their way into the UK.

72. This will involve developing a managementinformation system on numbers of breaches ofthe new immigration rules, in particular byoverstaying, by all nationalities which can thenbe cross-referenced to initial purpose of entryand initial leave to remain generating informationon those migration patterns that represent ahigh risk. Applicants who match these high-riskpatterns will in future be required to deposit afinancial security before the entry clearance isgranted.This will only be returnable when therelevant person leaves the UK. It will be forfeitin cases of overstaying or in other specifiedinstances when the rules are breached.

Tier 1 – Highly-skilled migrants

Tier 1 is designed to bring into the UKthose migrants with the very highest skills.They do not need a job offer and will haveunrestricted access to the labour market.A migrant who enters under Tier 1 will notneed a sponsor under the new system.

73. Tier 1 will replace the current Highly SkilledMigrant Programme (HSMP), which already takesa points-based approach to assessing whichmigrants should be allowed to enter the UK.It will select migrants with top-level skills who will be able to find employment or self-employment and increase the productivityand growth of the UK economy.

74. The majority of migrants coming to the UKto work are likely to enter under Tier 2. Likethe current work permit system, migrants witha specific job offer from an employer in the UKcould enter under this Tier if they meet thecriteria as set out in the section on Tier 2. It ispossible that those with a job offer may alsomeet the criteria for Tier 1. In this case theywould, if they wanted to, be able to enter underTier 1 and take up the offer of employmentwith the additional flexibility of being able tochange employer without a further applicationunder the points-based system.Tier 1 is notabout identifying specific skills required byindividual employers, which is provided for inTier 2 of the new system.

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Consultation responses

75. In the consultation document SelectiveAdmission we asked in question 11: Whichattributes do you think are most important for Tiers 1 and 2? Are there any others? Ofthe attributes offered (age, English language,job offer, previous salary, work experience and skills), skills were identified as the mostimportant, followed by English language. Ageand previous salary were considered to be the least important, although opinion was more divided on this than on the mostimportant attributes.

76. In question 12 we asked: Would the proposedoutline design for Tiers 1 and 2 exclude anymigrants who enter the UK under the current Work Permit or HSMP arrangements? As manyrespondents said, this was a difficult question toanswer and the answer might change accordingto the way in which the points-based systemdeveloped. Of the 240 respondents whoanswered this question, just over half (58%)thought that it would. However, the examplesgiven were almost all of people who would,under the proposals in this document, fit underother Tiers (e.g. those coming on youthmobility schemes) or indeed those who willcontinue to qualify under the points schemesoutlined here for Tiers 1 and 2.

Proposals

77. Over the past few months we have carriedout analysis of the existing HSMP route, and haveused this and research from other countries toestablish the attributes which best predictsuccess in the labour market.This researchincludes analysing those migrants who enteredunder HMSP and were successful at the stageat which they applied for further leave (i.e. after12 months) and comparing their salaries at thisstage with the attributes they demonstrated onentry into the UK. Officials, including Governmenteconomists, have used all this research toproduce a proposed points model for Tier 1,using a small number of objective attributes(qualifications and previous earnings, withbonus points for being aged under 32 and forhaving UK qualifications or earnings, and anEnglish language requirement).

78. This reflects the view of consultationrespondents that skills and English language are important. Age and previous salary, whichwere considered as less important byrespondents, are however also included.Previous salary is included because our analysis of the existing Highly Skilled MigrantProgramme indicates that this is the most

effective predictor of success in the UK labourmarket. Previous salary will be measured relativeto rates in the country in which it was earned,and not UK rates: we would not expect an ITspecialist to be earning in Nigeria what wewould expect him to earn in Japan or the USA.

79. Age is included as a bonus attributebecause it gives employers the ability to employyounger migrants that have demonstratedpotential as well as older migrants withestablished careers, thus helping to deliver theflexibility that consultation respondents havesaid they want.Younger people are likely to beearning less than older people, and so thepoints system is designed to take account ofthis.This is entirely realistic and helps to ensurethat those with high potential have access tothe UK labour market. Other countries withpoints-based systems such as Australia andCanada also take age into account in theirdecision-making.

“Linear ranking of attributes, in particular ageand previous salary, is insufficiently flexible toaccommodate the varying range of attributesthat make a candidate an attractive hire.”

Goldman Sachs International

80. The proposal outlined here is not a linearranking of attributes but a sophisticated systemof weightings and trade-offs. It would allowdifferent combinations of attributes to result inentry to the UK: for example, a person withjust a Bachelor’s degree and high previousearnings, or someone with a UK PhD andrelatively low previous earnings would equallyearn enough points to apply.This means thatthe scheme is flexible enough to enabledifferent types of desirable people to enter andcontribute to the UK, thus responding to theconcerns of consultation respondents that anobjective, structured system would not beflexible enough for their needs. However, thesystem is still objective and straightforward touse, since it is clear how many points will beawarded for a given attribute, and how theseattributes can be combined together to gainenough points to make an application.

Current points model for Tier 1

81. The next table shows the latest version ofthe points model for Tier 1.This is subject totesting and revision and is not necessarily thefinal version that will be used, but is publishedhere in response to requests from consultationrespondents for more detail on how the newsystem might work in practice.

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82. This means that many differentcombinations of attributes will enablesomebody to enter Tier 1. For example:

• A 27-year-old PhD graduate, who studiedoutside the UK, needs to show previousearnings of at least £16,000 per annum to qualify.

– 20 points for age + 50 points forqualifications + 5 points for a previoussalary of £16,000 gives the applicant atotal of 75 points

• A 29-year-old Masters graduate, who studiedin the UK, needs to show previous earningsof at least £26,000 per annum to qualify

– 10 points for age + 35 points forqualifications + 5 bonus points for a UK degree + 25 points for a previous salary of £26,000 gives theapplicant a total of 75 points

• A 34-year-old with a Bachelors degree whohas been employed in the UK under Tier 2can switch into Tier 1 by showing earningsin the UK of at least £35,000 per annum.

– 30 points for qualifications + 40 pointsfor previous earnings of £35,000 + 5bonus points for previous earnings beingin the UK gives a total of 75 points

• A 40-year-old with a Bachelors degree,obtained outside the UK, needs to showprevious earnings of at least £40,000 perannum to qualify.

– 30 points for qualifications + 45 pointsfor a previous salary of £40,000 gives atotal of 75 points

Impact of this points-based system

“We need to be able to recruit younggraduates who have aptitude rather thanexperience, intellectual capital rather thanpersonal investments i.e., potential rather thana proven track record.”

Morgan Stanley International Limited

83. Companies are keen to be able to recruitmigrants on the basis of their potential as wellas their experience.This new system meansthat a person who is highly qualified, especiallyif those qualifications are earned in the UK, willnot need to be able to demonstrate as high alevel of previous earnings in order to have freeaccess to the labour market.

84. We are modelling the effects of ourproposals to understand their impact on thecurrent HSMP pattern of intake, and as wefurther develop the points and attributes willcarry out live testing on current cases tostrengthen this understanding. Inevitably if thepoints scoring system is changed then some

Qualifications Previous Earnings6 Age Others

(000)

Bachelors: 30 points £16– 18: 5 points 27 or under: 20 points Where Previousor Earnings orMasters: 35 points £18– 20: 10 points 28 or 29: 10 points Qualifications or have been gained PhD: 50 points £20– 23: 15 points 30 or 31: 5 points in the UK: 5 bonus

points (max 5 in £23– 26: 20 points this category)

£26– 29: 25 points

£29– 32: 30 points

£32– 35: 35 points

£35– 40: 40 points

£40+ : 45 points6 Figures here are UK equivalent: the actual earnings will be weighted to take account of the country in which they were earned as they are at the moment for the Highly Skilled Migrant Programme.

The pass-mark for the table is 75. Points can be scored in each of the 4 columns.

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migrants who would not qualify under HSMPwill qualify under the new system, and viceversa.The new Tier 1 system is objective andtransparent and it will be easy for prospectivemigrants to see whether they will qualify.

85. It is not necessarily the case that thecombinations of attributes needed in the UK will always be the same.The Tier 1 pointssystem meets the test for the new system ofbeing flexible, since the points can be adjustedin response to a changing UK labour market.For example, the minimum salary required toenter with just a bachelors degree could bechanged, or the number of points awardedfor a particular type of degree could be re-assessed.This flexibility ensures that thedesign of Tier 1 will meet not just current UKeconomic needs, but also those of the future.

Other categories under Tier 1

86. In addition to the points system outlinedabove, current entry routes for personsintending to establish themselves in business,innovators or who those have substantial fundsto invest in the UK will be subsumed into aTier 1: Enterprise category.

87. The similar Tier 1- Post Study category willoffer a transitional route for skilled overseasstudents who have chosen to study at UKinstitutions.They will be eligible to apply towork in the UK for 12 months after completionof their studies. This will give them theopportunity to find suitable employment hereand to build up experience of the UK labourmarket before making an application for

mainstream Tier 1 or Tier 2.This category willsubsume the current Science and EngineeringGraduates Scheme (SEGS) the Fresh Talent:Working in Scotland Scheme (following anevaluation of how it is working in practice) andthe provisions announced in the Pre-BudgetReport for all postgraduates, plus undergraduatesin shortage sectors, to work in the UK for 12months upon completion of their studies. It willalso include an amended version of the currentMBA provision.This new category means thatfor example a Masters graduate from a UKuniversity with little or no previous workexperience can qualify for Tier 1: Post Studyand can spend a year in the UK at the end ofwhich she can apply to remain in the UK under mainstream Tier 1 or Tier 2 if she hassufficient points.

After entry: entitlements and leave

“Consideration should be given to checking the applicants’ contribution to the UKeconomy on renewal.”

CMS Cameron McKenna LLP

88. Tier 1 is a route to settlement andpeople in this route will be allowed to bringdependants to the UK.The proposal is that theinitial grant of leave will be for 2 years. Afterthis period, the points will be re-assessed andthe person will have to demonstrate highearnings or a significantly skilled job in order tohave their leave extended.We are consideringthe possibility of allowing the most successfulto move directly to settlement after 2 years.

Case Study: Asuka and Ichiro are both 28-year-old Japanese graduates who did their bachelorsdegrees together. Asuka did a PhD in Japan, and then worked in Australia for 2 years earning asalary equivalent to £30,000. She would achieve 90 points under Tier 1 (using the current proposalfor points) and would be able to make an application to come to the UK to look for a job.

Ichiro did not undertake further study but worked in Japan for several years, on a salary equivalentto £25,000. He would not achieve enough points to qualify for Tier 1 (60 points for age, previousearnings and his degree under the current proposal). However, he has been offered a job in theUK with a City Investment Firm on £40,000 per annum.The company is an A-rated registeredsponsor as they have sponsored a number of Tier 2 applicants and have a good track record.The combination of his job offer from a registered sponsor with a £40,000 annual salary, plus hisdegree will gain him sufficient points to make an application under Tier 2 (85 points under thecurrent proposal). He will have to work for his sponsoring employer unless he receives permissionfrom the Home Office to change jobs. It will be possible for him to change employment once heis in the UK, but his new employer would need to sponsor him and he would need to show thathe continues to meet the Tier 2 criteria by applying to the Home Office.

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Tier 2 – Skilled workers with job offer

Tier 2 is for those skilled workers whohave received a job offer from a UKemployer.Their attractiveness to the UK is demonstrated by the fact that aUK employer wants to take them on.

Consultation responses

89. There were no separate questions in the consultation document about Tier 2,so comments on Tier 2 are included in theprevious section on Tier 1. A question which isparticularly relevant to Tier 2 is question 14:Should employers be able to access migrant labourfor non shortage occupations? 76% of respondentsto this question believed that they should beable to, but there were concerns aboutensuring that UK and EU workers had an opportunity to fill these posts.

How will Tier 2 work?

90. Tier 2 is an employer-led system for mediumand high skilled migrants: if the applicant does nothave a job offer, he cannot enter under Tier 2.A Tier 2 applicant will need to meet certainminimum standards, because Tier 2 is is also aroute to settlement. Having undertaken analysisof work permit applications and modelled anumber of scenarios we have produced aproposal which uses a combination of salaryand skill level to ensure that Tier 2 migrantsmeet our objectives.

91. Applicants will need to have a job offerfrom an employer who is registered with theHome Office on a list of approved sponsors.In addition, the job will either need to be in an occupation which has been identified as ashortage by the Skills Advisory Body, (see page 27), or if it does not, will need to havepassed a test to demonstrate that the applicantis not displacing a worker in the domestic UKand EU labour market; in these circumstancesthe migrant himself or herself will need tomeet additional skills and salary requirements.

92. Employers who wish to bring migrants inunder Tier 2 will act as their sponsor and issuecertificates of sponsorship which will includethe job title and salary.The certificate ofsponsorship will act as an assurance from thesponsor (to the best of their ability) that themigrant intends and is able to do the job, thatthe salary is appropriate to the UK (ie thesponsor is not just trying to obtain cheaplabour), that the job is at the NVQ3 skill levelor above and that the job has been advertisedin the UK.

93. For jobs not identified as shortage, pointswill be used to ensure that applicants have the appropriate combination of skills andprospective salary. As in Tier 1, a small numberof objective attributes will be used: the currentproposal is for qualifications, earnings, and joboffer (which has passed the Resident LabourMarket test where appropriate – see page 27).However, unlike Tier 1, the salary is that relatingto the job offer in the UK, and not previousearnings abroad.This takes account ofconsultation respondents’ concerns aboutprevious salary as an attribute, and about theneed to be able to recruit young applicantswith high aptitude but no track record.Therewill also be an English language requirement.We expect those in Tier 2 to be able to make a full contribution to the UK economy and tosociety. Job offers in shortage occupations willreceive the minimum number of points to besuccessful at Tier 2.

After entry: Entitlements and leave

94. Workers in Tier 2 will be able to changeemployers within the UK but will be re-assessedagainst the points test and will have to have acertificate of sponsorship from the new employer.Tier 2 is a route to settlement. As stated inthe Five Year Strategy applicants will need aminimum of five years’ residence beforequalifying for settlement.The initial grant ofleave will be linked to the length of thecontract up to a maximum period.Tier 2migrants will be able to bring in dependantsand to switch into Tier 1 if they meet thepoints requirements.

95. In addition to the points-based systemoutlined above, current entry routes forsportspeople, overseas government employeesand Ministers of Religion will be incorporatedin Tier 2 where they are coming to fill long-term jobs.The skill and salary attributes will beadjusted to ensure that specialist categoriessuch as Ministers of Religion will qualify. Inaddition, this will be the main route for thosecoming via Intra-Corporate Transfer (ICTs)within a company which has offices in the UKand at least one other country.

Current points model for Tier 2

96. As with Tier 1, the points outlined beloware a proposal for illustrative purposes and aresubject to revision following further modellingand testing.

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97.This means that, for example:

A prospective Tier 2 applicant in a non-shortage occupation with a Masterslevel qualification would need to earn aminimum of £18,000 per annum in the UK.

A prospective Tier 2 applicant in a non-shortage occupation with a PhD wouldneed to earn a minimum of £15,000 perannum in the UK.

Intra-Corporate Transfers (ICTs)

“The introduction of (a) age-related criteriaand other non-relevant factors for securingwork permits for temporary immigrants to theUK and/or (b) increased costs, either by wayof increased charges or by auctioning of workpermits, would have the effect of deterringtrade. A distinction needs to be made betweenindividuals wishing to emigrate to the UK on apermanent or semi-permanent basis (wherecriteria above may be appropriate) andcompanies that need to temporarily transferstaff to the UK to work on specific,temporary projects (where such criteria are not appropriate.”

NASSCOM

98. The position of ICTs within the points-based system was an issue that attractedsignificant attention during the course of theconsultation process, and it was raisedrepeatedly at consultation events as well asbeing raised in formal responses to theconsultation exercise. ICTs are a categorywithin the current work permit arrangements

used by firms to transfer overseas employeesto work for the same company in the UK.Theuse of ICTs is restricted by a set of criteriabased on the nature of the role and migrant:

a. The individual must have six months prioremployment with the company

b. The role must be at NVQ 3 level or aboveand pay a salary appropriate to the UK.

c. The employer must demonstrate that therole requires company specific skills orexperience that could not be found in theUK labour market.

99. The ability to transfer employees makes the UK an attractive location for multinationalcompanies. ICTs are quicker and easier forfirms than standard work permits and do notrequire that the role is advertised.They are also widely used by firms involved in the IT off-shoring sector.

100. Throughout the consultation period, somestakeholders argued that ICTs should be dealtwith within Tier 5 of the new system, since thecompany sponsoring the ICT does not wantthat person to change to a different job andsponsor once in the UK. However, from thewider UK economic perspective, these areoften highly skilled individuals who couldcontribute to the UK labour market, andtherefore it is in the UK’s interests for them to be allowed to move to a different job if they choose and if they meet the pointsrequirements.

101. In the new system, we intend to continueto allow ICTs to enter the UK, under Tier 2 ofthe points-based system.We will remove thesubjective requirement that the worker needsto demonstrate company-specific knowledge

Qualifications: Prospective Earnings Others(000)

NVQ3 5 points £15-18 5 points Job Offer in 50 pointsshortage occupation

or £18-19.5 10 points orBachelors 10 points £19.5-21 15 points Job offer passes 30 points

Resident Labour Market Test (if applicable)

or £21+ 20 points orMasters 10 points ICT – defined by:

6 months previousor employment with the 50 pointsPhD 15 points firm; minimum NVQ3

level job; salary appropriate to the UK

The pass-mark for the table is 50. Points can be scored in each of the 3 columns.

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in favour of increased compliance checking ofthe requirement that the person is paid a salaryappropriate to the UK (ie the sponsor is notjust trying to obtain cheap labour).This reflectsmore closely the current needs of multinationalemployers and will deliver maximum economicbenefit for the UK.

The Resident Labour Market Test

“The Government’s own Jobcentre Plus webportal seems to be well placed to fulfil thisrole. A requirement to demonstrate that avacancy could not be filled via Jobcentre Pluswould greatly increase the resident labourforce’s confidence in the integrity of thesystem, whilst placing only a minimal extraoverhead on employers.”

TUC

102. The consultation document, SelectiveAdmission making migration work for Britain,described the current Resident Labour MarketTest and the possibility of a similar test underthe new system. Responses to the consultationexercise, and discussions with stakeholders,have indicated that this is an area of concern,and that while stakeholders believe thatemployers should be able to recruit migrantworkers for non-shortage occupations, they areconcerned about the impact on the residentlabour market.

103. In response to this, the Government hasdecided that there should continue to be amethod under the new system for ensuringthat migrant workers coming into non-shortageoccupations are not under-cutting the residentlabour market. However, in order to ensurethat this is not overly bureaucratic, it will workthrough the existing Jobcentre Plus channels,and will only apply to jobs below a certain salary,since it is here that there is most concern aboutmigrant labour undercutting the domestic labourmarket. As recommended by the TUC, employerssponsoring a migrant worker would first berequired to demonstrate that they had notbeen able to fill the job through Jobcentre Plus.

Auctions

104. In the consultation paper we mentionedthe possibility of auctioning places for non-shortage vacancies in Tier 2.The argument wasthat it might help protect the resident labourmarket by forcing employers to think abouthow valuable a migrant worker is to them.Thisidea was unpopular in consultation, with only afew respondents expressing any support for it.

The main reason given by respondents for not wanting to use auctions was that theywould advantage large organisations with bigbudgets over small businesses who would notbe able to pay the same prices.

105. Given the response to the idea of auctionsfor non-shortage Tier 2 vacancies, we do notpropose to proceed with this idea at themoment.We are confident that the proposalsset out here for protecting the resident labourmarket are adequate. However, auctions couldstill be a useful mechanism for capturing the valueto the economy of places for other migrantworkers, especially if there is uncertainty as tothe need for migration as a response to anapparent skills or labour shortage.

Skills Advisory Body

The role of the Skills Advisory Body (SAB)will be to identify shortages in skills andlabour on a sector basis. It will draw onthe existing Skills for Business Networkcomprising the Sectors Skills DevelopmentAgency (SSDA), Sector Skills Councils forEngland and Wales, and will draw on thework of Futureskills Scotland.

Response to consultation

106. Question 13 of the consultation document,asked about the Skills Advisory Body (SAB).Most respondents (79%) agreed with theprinciple of a SAB, as long as:

• it had adequate representation from bothsectors and regions;

• it could assess shortages on a regional basis.

Several respondents also suggested that it shouldhave a general advisory or monitoring function,although this was cited as a possible disadvantageby other respondents.

“We agree with the proposal for a SkillsAdvisory Body if it is based on the existingSector Skills Councils and if new and specificarrangements are put in place within the SABto provide for input from and consultation withstakeholders specifically including relevanttrade unions at an operational as well asexecutive board level.”TUC

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7 “Skills: Getting on in business, getting on at work.” March 2005 (Cm 6488-1) applies to England and Wales only.

Structure of the SAB

107. We have taken on board the commentsraised by stakeholders during the consultationperiod. Rather than creating a new body, theproposal in response to consultation is that the Board of the SSDA should take on theresponsibilities of the SAB. Members of theBoard are appointed by the Secretary of Statefor Education and Skills, and includerepresentatives from business, unions and the public sector.The Sector Skills Councils,reporting to the SSDA, provide employers witha forum to express their specific sector needs.We will do further work with the SSDA andindividual stakeholders to ensure that mechanismsfor input, from business, unions and the publicsector, are satisfactory.

Scope of the SAB

“The SAB should be capable of recognisinglabour (not necessarily skills) shortages andshould consult with SAWS Operators, CropAssociations, NFU.”

National Farmers Union (NFU)

108. Following responses to consultation, wehave concluded that the Skills Advisory Bodyshould not just deal with Tier 2 but should alsoprovide advice on the need for specific low-skilled routes under Tier 3. It will also producesome labour-market information which theHome Office will use to update the points-based system, for example the skills requiredfor particular occupations.

109. For Tier 2, our intention is that the SABwill produce the list of occupations whichqualify as shortage and therefore are notsubject to the resident labour market test.This will be in the form of an annual ShortageOccupation List with half-yearly updates. Anapplicant for a job on the Shortage OccupationList will not need to receive points for skills orsalary to qualify, although these occupations willstill be subject to the minimum skills levels forTier 2. For Tier 3, the SAB will identify anyshort-term, low-skilled shortages which need tobe met by a specific Tier 3 scheme.The SABwill also be able to advise on regional shortagesas necessary which in the first instance willinclude publishing a Scotland-wide ShortageOccupation List, recognising that Scotland hasparticular labour market needs.The needs ofother UK regions will be identified by regionalrepresentation on the SAB which will ensurethat those needs are met.

Decisions on labour market needs

110. Whilst the Skills Advisory Body willpublish the list of shortage occupations, basedon robust labour-market information, it will notbe a decision-making body. Decisions on therole of migration in addressing skills gaps will be for Government, taking into account the Skills Strategy7 and an assessment of the skills gaps and overall impact on thedevelopment of the countries from whichmigrants come.

Regional flexibilities

It is important that the new system is sufficiently flexible to be able to take account of regional variations in labour market shortages and economic performance. It also needs to complement other policy initiativeswhich may differ across the UK.

“It is vital that a new migration points-based system sufficiently reflects regionalrequirements and labour demand in order to allow the regions to attract the migrantsthey need to address particular skillsshortages and to reduce the economicdisparities between the regions.The primacy of Sector Skills Councils (SSCs)and the Skills for Business Network inarticulating employer demand for skills needsto be maintained, and the role of SSCs andthe Skills for Business Network in the SkillsAdvisory Body is welcomed.The recentrefocusing of the Sector Skills Agreementprocess around aggregated regional skillsneeds presents a potent opportunity tocapture regional sectoral needs.The RegionalSkills Partnership (RSP) also plays a key rolein validating articulated needs, and providingsupplementary research.The key RSP partners – One NorthEast,LSC, Jobcentre Plus and Skills for BusinessNetwork – therefore present the best optionfor articulating a regional spatial dimension to migration.”

One NorthEast

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8 Chartered Institute of Personnel and Development, Labour Market Outlook, Autumn 20059 Accession Monitoring Report, Home Office, February 200610 Control of Immigration: Statistics, United Kingdom, 2004 Cm 6690

111. In response to consultation we haveconcluded that the Skills Advisory Body should be able to advise on regional shortagesas necessary, including by publishing a Scotland-wide Shortage Occupation List.The SkillsAdvisory Body will comprise the board of the Sector Skills Development Agency, whoseremit covers the four nations of the UK, andwill take account of the particular needs ofregions and nations across the country.

112. Scotland, for example, is seeking moremanaged migration to help address theeconomic and social implications of a decliningand ageing population.Their strategy consists ofattracting skilled and highly skilled migrants andencouraging them to stay in Scotland in thelonger-term, for example through a reducedqualifying period for settlement for some Tier 1and Tier 2 migrants who can demonstrate theyhave lived and worked in Scotland for anappropriate period of time.

“SCDI does not agree that a single list can bedeveloped for the whole of the UK and feelsthat the particular needs of the Scottisheconomy, which is suffering from shortages insectors without a narrow definition of ‘highlyskilled’, must be taken into account.”

Scottish Council for Development and Industry

Tier 3 – Low-skilled migration

The Five Year Strategy set out that wewould phase out low-skilled migration in response to the numbers of workersavailable from the newly enlarged EU,and that the only low-skilled routes which remained would be quota-based,operator-led, time-limited, subject toreview, and only from countries withwhich the UK has effective returnsarrangements. Any new routes will bebased on identifications of temporaryshortages by the Skills Advisory Body.

Response to consultation

113. A strong response from the Agricultureand Hospitality sectors, especially evident at thesector events, was that low-skilled migration isan essential support for businesses in thesesectors in the absence of UK workers preparedto do these jobs. However, other responseswere not in favour of low-skilled migration, and

expressed concern that migration in thesesectors kept wages low so that jobs in thesesectors are not attractive to UK workers.

“In some cases, for instance, the labourshortages which exist are due to the lowlevels of pay and conditions on offer.”

TUC

114. Question 17 of the consultation document,Selective Admission, asked: ‘Should employersseeking to fill particular vacancies with participantson Tier 3 schemes be required to demonstrate theyhave attempted to fill that vacancy with a non-migrant worker?’ The majority of the respondentsto this question (72%) felt that employersshould be made to recruit resident labourbefore recruiting from overseas, and wereconcerned about migrant labour taking jobsfrom the domestic labour force.They were alsoconcerned that the availability of cheap migrantlabour does not encourage employers toimprove pay and working conditions. Conversely,those who answered in the negative to thisquestion said that employers will always first trythe domestic market before recruitinginternationally because of the higher cost oftaking on migrant labour. A CIPD labour marketoutlook report in November showed that fewemployers hire migrants mainly due to lowerwage costs but that this objective was almostfive times more important for employers hiringless skilled (9%) than skilled (2%) migrants8.

The numerical context

115. In 2004, the Seasonal Agricultural WorkersScheme (SAWS) and Sectors Based Scheme(SBS) together provided approximately 32,000migrants to the UK.This compares to largenumbers of migrants who are free to work inthe UK but have not entered to work in aspecific job. Since May 2004 around 329,000workers from the EU accession countries haveregistered to work in the UK9. In addition,migrants from a number of other routes suchas working holidaymakers and dependants ofworkers are free to work in the UK. 294,000students, who are free to work for 20 hours aweek in term-time, and full time in holidays,came to the UK in 200410.These numberssuggest that existing schemes for low-skilledmigration provide only a very small proportionof migrants who might be available to carry outlow-skilled work.

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116. More detailed figures suggest thatagriculture and the sectors covered by theSectors Based Scheme (hospitality and foodprocessing) have increasingly been able torecruit workers from the EU accession states.Figures for 2005 show that nearly 23,000nationals from these countries were registeredin the agriculture sector and over 38,000 inhospitality and catering.This compares toaround 15,000 who came in under SAWS in2005 and a further 4,000 working in hospitalityunder the SBS. 28% of those entering under theSAWS in 2005, and 43% of those issued withSBS permits under the current quota, are fromRomania and Bulgaria, which are currentlynegotiating to join the EU.

117. At the same time, the Government hasreduced the quotas on the existing low-skilledschemes.The SAWS quota was cut from 25,000to 16,250 following EU accession in May 2004,and in July 2005 the hospitality quota under the SBS was terminated.The numbers abovelead to the conclusion that the agriculture and hospitality sectors are starting to rely on workers from accession states to fill thevacancies in these sectors, in response to these reductions of quotas.

Terminating existing schemes

118. During the consultation process we ran a parallel review of the existing SeasonalAgricultural Workers Scheme (SAWS).Theconclusion of that review is that we will phaseout the existing SAWS scheme by the end of2010.We will therefore extend, in agreementwith the SAWS operators, the existingoperators’ contracts to November 2008 with afurther extension as appropriate.This timescalemeans that the SAWS will not be phased outuntil after Bulgaria and Romania have accededto the European Union (on current timescales).We will keep the size of the remaining SAWSquota between now and termination underreview in the light of the accession of thosecountries, and we expect to make substantialcuts in the quota as employers prepare for thescheme to be terminated.

119. The SAWS operators have, in theirresponse to the consultation paper, stressedthe benefits that the SAWS has provided toparticipants in terms of a cultural experience.Under the points-based system, there will beprovision for a youth mobility scheme underTier 5.We envisage that it would be open tothe current SAWS operators to be involved in the placement of people arriving under that scheme.

120. We will also phase out the remaining food processing quota under the Sectors Based Scheme by the end of 2006.We will be infurther contact with stakeholders in the sectorbetween now and the expiry of the currentquote in June 2006.

The policy

121. While the Government intends to phaseout existing low-skilled migration schemes, wehave listened throughout the consultation to thearguments for flexibility.This relates to one ofthe overarching objectives of the new system:to be responsive to the changing needs of theUK labour market. Employers are expected torecruit from within the UK and the EU beforelooking to migrant labour from outside the EU.The numbers above suggest that in most casesthere should be adequate labour, skilled andunskilled, available from within the EU, withmore becoming available as more countries jointhe EU. Only where there is an identifiedshortage which cannot be met from within theUK or EU will a scheme under Tier 3 be set up.

122. The proposal is that new, quota-basedlow-skilled schemes should be set up only forcountries with which we have effective returnsarrangements, and in response to labour marketshortages which are clearly temporary.Thisshould provide the flexibility that the labourmarket needs. All such schemes would be runby an operator, and we are considering optionssuch as compulsory remittances, requiring openreturn tickets, and biometric capture to ensurethat workers return at the end of their stay.Entry would be for a maximum of 12 monthswith no dependants, and there would be noright to switch into any other route.

123. We agree with respondents to theconsultation exercise that there are some low-skilled jobs for which English language shouldbe a requirement (e.g. some jobs in healthcareand hospitality). However, there are also somejobs (e.g. agriculture) for which English may notbe necessary. Rather than imposing a blanketrequirement which might not be appropriate inall cases, we have decided that an appropriatelevel of English for the job in question will beset by the employer. It will be for the operatorand the employer together to ensure that the selected migrants meet that requirement,overseen by the compliance arrangements for sponsorship.

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11 “The Global Value of UK Education Exports”, Prof. Geraint Johnes,April 2004.

Identifying shortages

124. As set out above in the section on the Skills Advisory Body (SAB), this would bethe mechanism for identifying shortages forwhich short-term low-skilled schemes were anappropriate response.The SAB would makerecommendations to Government, who wouldmake the final decision on whether migrationwas an appropriate response to an identifiedshortage.This responds to concerns raised inconsultation that employers should be requiredto recruit from the domestic labour force first.

Tier 4 – Students

Overseas students bring significant benefitsto the UK, contributing some £5 billion11

a year to our economy.They also bringadditional benefits in closer internationalties and support for university research.

The points-based system offers anopportunity to make the student routeboth simpler and more robust. Integral tothe new points-based system is providingmore objectivity and transparency to thedecision-making process and a greaterrole for sponsors in vouching for thestudents they want us to allow into the UK.

125. Each student, before making an application,will be able to self-assess against a set ofpublished criteria to see whether they will havesufficient points to be granted leave to enter orremain in the UK. Details of the criteria are setout in the section on points and structureddecision-making and are currently being tested.They will include a valid certificate ofsponsorship from an educational institution atwhich the student has been offered – andaccepted – a place on a course of study.Respondents to the consultation were clearhowever that the criteria should be as clearand objective as possible and that decision-makers should not make be asked to makejudgements about educational matters. As withall the Tiers, there will be further opportunitiesfor stakeholders to engage with us as we domore work on the detail of the new system.

“The current system is not merely complex,but it relies on decisions by entry clearanceofficers which are often based on subjectivecriteria and can be idiosyncratic.There is atendency for ECOs to make educationaljudgements (such as about the suitability of a course) which they are not qualified to assess.”

English UK

126. Leave will then be tied to the sponsoringinstitution and given for the length of thespecified course up to a maximum, plus areasonable period of time to wind up theiraffairs and attend graduation ceremonies. Freshin-country applications will need to be madeshould the student wish to change sponsors orextend the length of their leave, but not whenjust changing courses at the same institution.This reflects the fact that a majority ofrespondents (to question 20 of the consultationdocument) agreed that leave should be tied to aspecific institution, something which would helpinstitutions with planning and add robustness tothe control, but felt that students should retainthe flexibility to change courses without havingto make a fresh application.

“The visa should be linked with an institution/employer and not with the course at thisstage. It is common, even for UK students in consultation with their tutors to changecourses after enrolment and this option shouldalso be available to international students.”

British Council

127. The certificate of sponsorship will act asan assurance from the sponsor (to the best oftheir ability) that the student intends and isable to follow the relevant course of study.This replaces the current requirement in theimmigration rules that the entry clearanceofficer or caseworker should assess thesecriteria, even though they may not be bestqualified to do so.

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128. Only educational institutions on the list of approved sponsors will be entitled to issuecertificates of sponsorship. In order to beincluded on the list of approved sponsors,institutions will need to demonstrate that theyare bona fide learning providers accredited by a recognised body.The Home Office is workingwith the Department for Education and Skillson what will constitute “accredited” for thesepurposes, and we will continue to engage withstakeholders as we develop this policy.This willhelp weed out bogus colleges and studentsseeking to abuse the student route and ensurethat prospective international students willreceive greater quality assurance in relation to institutions in the UK.

“…the policy intention behind educationalsponsorship will not work unless it is backedup by a robust register of providers whichmakes clear a distinction between publicsector universities and colleges and accreditedprivate providers and non-accredited purelycommercial institutions.”

Association of Colleges

“…it should be restricted to those institutionswhich can demonstrate formal educationalquality criteria, and/or are subject toinspection or accreditation…”

UKCOSA (The Council for International Education)

129. As part of their sponsorship requirements,educational institutions will also be required toreport non-enrolment or discontinuation ofstudies by any student they sponsor.The HomeOffice, through the Joint Education Taskforce, iscurrently piloting how this might work inpractice with over 30 institutions drawn fromacross the education sector.

130. 81% respondents to question 21 said thateducational institutions should be required tohelp maintain the integrity of the immigrationcontrol. Many however stated that there werelimitations on how much could be expected of institutions, particularly English languagecolleges which did little in the way of checkingprospective students and that ultimateresponsibility for policing the system fell to the Government.

131. Many in the education sector were also of the view that the terminology aroundsponsorship used in the consultation documentcould be confusing for prospective students.Prior to implementation, we will consider analternative to the phrase “certificate ofsponsorship” for this Tier.

“The terminology of “sponsorship” in educationis problematic as sponsors are oftenassociated with financial support”.

Universities UK

132. Tier 4 will be subdivided into threecategories with varying conditions andentitlements to reflect the different types ofstudies available in the UK, including a studythrough work category to reflect the growingmarket for courses which include workexperience or specific placements.

133. Except for those under the age of 16,most students will be entitled to bring in theirdependants and work part-time.

“It is important to allow international studentsto work for the UK’s competitive advantage inthe international student recruitment marketand also for the benefits gained byinternational students through broadeningtheir UK experience and further developingtheir English language skills. It is alsoimportant to allow international students tobe accompanied by their dependants.”

Universities UK

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134. The table below summarises ourproposals for each category of study.

Tier 5 – Youth Mobility andTemporary Workers

People coming to the UK under this Tier are principally here to satisfy non-economic objectives.Youth mobilityschemes can play an important role inpromoting the UK abroad, as nationalsreturn home and encourage furthertrade and tourism. Allowing for certaintypes of temporary worker also helps tosatisfy cultural, charitable, religious orinternational objectives.Those coming to the UK under Tier 5 additionallycontribute to the economy by working,paying taxes and spending on goods andservices.

Youth Mobility

135. Youth mobility schemes can bring long-term benefits to the UK. A temporary but positive experience of the UK when youngcan lead to life-long links which can bring benefitsin terms of trade, tourism and internationalrelations.Youth mobility schemes can be used tohelp support and grow bi-lateral relationshipswith our international partners. Furthermore,such schemes can lead to greater access towork and travel for our nationals overseas.

136. In 2004, approximately 73,000 peopleentered the country under a number ofschemes that could be loosely groupedtogether under youth mobility and culturalexchange.These include the CommonwealthWorking Holidaymaker (WHM) scheme (by farthe largest), BUNAC and the au pairplacements scheme.

“In the au pair programme, we emphasise the cultural exchange aspect and this benefitsmutual understanding between countries, andquite often there is some future payback forthe UK and the countries involved.”

British Au Pair Agencies Association

137. The new points-based system offers theopportunity to rationalise these into a singlescheme with a clear set of entitlements andcontrol requirements.

138. The advantages of a single generic youthmobility scheme will be that it is:

• Simpler for applicants and the public tounderstand

• More straightforward to operate and easierto manage immigration risk

• Fairer as each country’s nationals wouldhave to meet the same requirements

• Potentially universal

Category Entitlements Conditionsof study

Dependants Work Leave

General student Yes* 20h per week and Duration of study Student is studying fullfull time in vacation plus a reasonable time at degree level or

additional period above in a publiclyfunded institution,or engaged in at least 15 hours per week organiseddaytime study

School No As for general As above Full time study to 18student for at an independentthose over 16, fee-paying schoolotherwise none

Study through Yes* As for general As above Under considerationwork student, plus that

related to course

* Dependants may work if the principal is in the UK for more than 12 months

34


139. Participating countries will need to agreeto the terms of the scheme including theexistence of an effective returns arrangement,an acceptance that the foreign government willact as the sponsor, and country limits setaccording to immigration risk.

140. If the rationale for the scheme is culturalexchange it will make sense, wherever possible,to look for reciprocity and to extendopportunities for British nationals. Reciprocity willnot necessarily require “mirror” arrangements(which could result in an undesirable level ofcomplexity) but some broad equivalence ofpurpose and entitlement.

141. The scheme will allow nationals aged 18-30, from participating countries, to come to the UK for up to 24 months, after whichtime they will have to leave the UK.

142. In order not to undermine the rationaleof the scheme, which is principally about peoplecoming here for a holiday and doing incidentalwork to support themselves and not an avenuefor economic migration, participants will, in themain, be restricted to working for a maximumof 12 months out the total of 24 (as with thecurrent Working Holidaymaker scheme).Participants will not be allowed to be self-employed or play professional sports. Inaddition, those entering under the scheme willnot be able to bring dependants and will beunable to switch to any other Tier.Theserestrictions underline the temporary nature ofthe route.

143. While 88% of respondents to question 24 of the consultation were of the view thatswitching should be allowed, dropping this andthe other restrictions would act as a pull factorto people who want unrestricted access to ourlabour market without qualifying on the basis ofskills or shortage or having to undergo anyResident Labour Market test.These peoplewould be less likely to want to leave at end oftheir stay and confidence in the system wouldbe undermined.

144. Each applicant will need to produce avalid certificate of sponsorship issued by theirgovernment when making an application. Such acertificate will act as an assurance from thesponsoring government that the applicant hasaccepted the terms on which they were beingallowed into the UK. For a government to givesuch an assurance we would expect them to dosome sifting of potential applicants. At the veryleast we would expect them to make clear theterms of the scheme and the consequences ofnon-compliance.We will then monitor the levelof overstaying of any country’s nationals andadjust the country’s annual quota or suspendthem from the scheme altogether according tothe immigration risk presented.

145. Potentially a large number of people mightqualify for entry to the UK under the scheme.This is however likely to be reduced by insistingon effective returns arrangements to be inplace, country-specific limits, and somereciprocity for British nationals.There mayhowever still be a need to cap the overallnumbers of people entering the UK under thescheme in order to manage the potentialimpact on the business of UKvisas and the UKlabour market.The overall figure could initiallybe based roughly on the number of peopleentering through existing schemes and thenadjusted according to changing demand; thelevel of abuse of the scheme; or the state of theUK economy.

Temporary Workers

146. Temporary workers are people who cometo work in the UK for a limited period of timewhom might not qualify under Tier 2, but whowe want to allow into the UK for cultural,charitable, religious or international developmentreasons or to satisfy our obligations undercertain international treaties. Many of thesereasons were identified by respondents to theconsultation who generally were of the viewthat these migrants brought considerablebenefits to the UK.

147. This part of Tier 5 rationalises a largenumber of existing routes into five sub-categorieswhich will each have their own distinctiveattributes and sponsorship arrangements.

35


148. In keeping with the temporary nature ofthe Tier, the maximum period of leave that couldbe granted will be 24 months (12 months insome cases) and switching into other Tiers willnot be permitted. Dependants will be allowedbut will only be entitled to work if the principalis granted more than 12 months leave.

149. The limitations on type of work andrestrictions on length of stay, dependants, andswitching, mean that we do not envisage therebeing a need for a separate resident labourmarket test in this part of Tier 5 except where such a test is already part of a multilateralagreement.We will however keep this areaunder review and if there is a need to do moreto protect the resident labour market in anyparticular sector we will look at mechanisms to deal with the problem including furthertightening of the criteria.

150. For each of the sub-categories there willbe varying requirements in order to qualify as a sponsor and particular responsibilities. In eachsub-category the sponsor will be expected tosatisfy themselves that the person beingsponsored is qualified to do the work inquestion and, as far as is possible, intends toleave at the end of their stay.

151. Creative and Sporting: People coming assportspeople, entertainers or other creativeartists for short periods of time.These peoplebring cultural benefits to the UK. Sponsorscould include affiliates or members ofcommercial organisations or organisationsfunded by Government, as well as recordcompanies, promoters, tour managers, sportsclubs, governing bodies and organisations.They will need to vouch that an entertainer or sportsperson is seeking entry to perform,tour, compete or take part in a specified eventor series of events, poses no threat to thedomestic labour market, and is not intending todo other work or remain in the UK.Themaximum leave for this sub-category will be 12 months.

152. Voluntary: People coming to work voluntarilyfor a good cause. It will be a requirement thatthe sponsor must be a charity or non-charitablebenevolent or philanthropic organisation asdefined by legislation. Sponsors will need tovouch that the applicant’s activity in the UK will be voluntary fieldwork directly related to the purpose of the sponsoring organisation,is not subject to the National Minimum Wage,and does not constitute a permanent position.The maximum leave for this sub-category willbe 12 months.

153. Religious:This will include various religiousworkers coming to the UK for a short period.Providing a route for these people enablescommunities in the UK to better follow theirfaiths.The sponsor will be the faith community,for example a synagogue, mosque, mandir,church or gurdwara.The maximum leave for thissub-category, for religious workers in a non-pastoral role, will be 24 months. Ministers ofReligion (who preach to their congregationsand perform a pastoral role) will not beincluded here, but will be expected to qualifyunder Tier 2.

154. Exchange: People coming through approvedor accredited exchange or development schemesaimed at sharing knowledge, experience andbest practice. Such schemes are of culturalbenefit to the UK and help meet internationaldevelopment objectives.The sponsor would bethe organisation running the accredited schemeand might include the British Council or aGovernment department. Sponsors would needto vouch that the applicant was qualified to takepart in the scheme and would not takeemployment other than as part of theexchange.The maximum leave for this sub-category will be 12 months.

155. International Agreement:We are obliged toallow into the country to work a number ofpeople as a result of a variety of internationalagreements. For example, people coming undercontract to provide a service under the GeneralAgreement on Trade in Services (GATS) orservants in diplomatic households under theVienna Convention on Diplomatic Relations(VCDR) 1961.The sponsor will reflect the natureof the international agreement but would bethe client or employer in UK for GATS or thediplomatic mission in the case of servants indiplomatic households.The maximum leave forthis sub-category will be 24 months.

36


The British Council: a case study

The British Council currently operates six accredited schemes which broadly share the same aimof bringing in people from developing countries to carry out specific work placements in the UKin order to develop their skills and take this knowledge back to their country of origin.Theseschemes are funded by a variety of Government departments and help the UK meet internationaldevelopment objectives. However, at the moment people selected by the British Council underthe schemes come into UK under a variety of different immigration routes depending on theirexact circumstances, e.g work permits,Training and Work Experience Scheme and two specificallytailored categories in the Rules (Exchange Teachers and Language Assistants and InternationalAssociation for the Exchange of Students of Technical Experience).

This situation is very complicated, and there is a large overhead in cash terms (cost of workpermits) as well as time. Much effort is expended by the Home Office and the British Council inmanaging these accredited schemes and access to different immigration routes.

Under the points-based system, all those coming to the UK on one of these schemes will do so under Tier Five:Temporary workers (Exchange).The British Council will act as the sponsor,selecting suitable programme participants and ensuring that arrangements are in place for theparticipant to leave at the end of their stay.

There is likely to be one point of contact – a single person whose job it will be to understand the British Council schemes and manage their relationship. Since they already fulfil many of therequirements we will be asking of sponsors, the British Council is likely to be rated as an “A”sponsor and have their applications fast-tracked.

For sponsors like the British Council, the new system is therefore likely to be simpler (one route instead of many), cheaper (no more work permits) and more customer focussed (theBritish Council have commented that in recent years they have not had as close a relationshipwith the Home Office as they did in the past).

The Home Office will then focus energy on compliance management activities related to weakersponsors to try to improve their practice or, if this proves unsuccessful, remove them from list ofapproved sponsors.

37

156.The costs of running the current UKvisasoperations, and those costs associated withdecisions taken in the UK including leave toremain and work permits are recovered in fees and charges.

157.The costs of administering the new schemewill also be recovered through fees and charges.As set out in the consultation document“Selective Admission: Making Migration Work forBritain”, the Government remains committed toa sustainable system, that is as far as possibleself-financing without reliance on the publicpurse, and further, that the fees should not bedisproportionate for the migrants or employerswho benefit from migration.

158. As we develop the structure and servicessupporting the new system, the costs of each of the component parts of the system will beestablished, and an appropriate set of fees andcharges will be available.

159.We are however considering a range ofnew approaches to recovering the costs of the system. For instance, we are exploring thepossibility whereby visa and leave to remainfees might be collected by sponsors (in thecase of educational institutions perhaps as partof the tuition fee). Not having an upfront chargefor applications would serve as a means ofattracting the brightest and the best to the UK and deepen the role of the sponsor as an integral part of the system.We propose to consult on this, and other possible chargingoptions, in the Autumn.

Costs of administering the system

38


39

161. The points-based system will be phased inby Tier.We will be developing and testing theprocesses that underpin the proposals in thisdocument before any firm implementation datesare announced.We will also ensure that thecompliance infrastructure, including the propervetting and registration of approved sponsors,is in place prior to the implementation ofpoints-based decision-making.

162. We do not underestimate the significanceof the IT requirement that will be needed tosupport the new system and we will only roll outany part of the system when it has undergonerigorous testing.

163. There will be further opportunities forstakeholders to engage with us as we do morework on the detail of the new system and thetiming of any changes, and we will be runningevents and workshops over the coming months.For further information please contact us on 0114 207 4074 or visit our website atwww.ind.homeoffice.gov.uk.You can also email us at:[email protected].

Next steps

40


1. Overview

517 responses were received, with 375 external to the Immigration andNationality Directorate of the Home Office and 142 internal. Every effort has been made to make the findings representative across sector.

The external respondents are summarised by sector in the following chart.

Other demographic breakdowns of the responses are shown below:

The analysis that follows is backed by sector specific summaries onwww.ind.homeoffice.gov.uk

41

Analysis of consultation responses

10

12

13

15

43

130

21

11

13

13

10

15

42

9

14

0 20 40 60 80 100 120 140

Administration, Business &Management Services

Agriculture Activities

Computer Services

Education & Cultural Activities

Entertainment & Leisure Services

Financial Services

Government

Hospitality, Hotel and Catering& Other Related Services

Law Related Services

NHS Trust

None

Other services

Private Health & Medical Services

Sporting Activities

Telecommunications

Transport

Utilities – Gas, Electricity, Water

Manufacturing

1

1

2

Figure 1: Characteristics of respondents

Employment Sector

Education Sector

165 130

Figure 1a: Respondents by sector

Scotland

Wales

England Northern Ireland

More than onecountry

Figure 2: Proportion ofrespondents by location

32

28

31

11

40

41

2

4

76

33

0 10 20 30 40 50 60 70 80

Voluntary

Public Sector

Employer

Union

Private

Immigration advisor

Applicant

Sponsor

Educational institution

Other

Figure 3: Respondents by category of organisation

2. General: Questions 1-6

Q1 Do you agree that the benefits of migration outweigh the costs?

Q2 Can a managed migration system be used to deliver the UK the workersit needs?

Q3 Is the current system too complex and bureaucratic?

Q4 Should the users of the system or the taxpayer, or both bear the costs ofthe migration system?

Q5 Do you think we should introduce these changes in a phased manner?

Q6 Could the proposals to introduce a points-based system affect some groupsof migrants more than others?

Quantitative summary

Qualitative summary of responses to Q1 to Q6 – key themes

• General agreement that costs should be shared between the users and taxpayers.

• Mixed views on what should be implemented first, although some respondentsfavoured the use of pilots to avoid problems at full implementation.

• Majority view of a system which is too complex, supported by many proposalsas (eg. Merging Tiers 1 and 2 into one unified skilled category as suggested bythe Institute for Public Policy Research)

• View that the system was likely to penalise those from less-developed countriesas they were likely to score lower on skills, financial and educational backgrounds.

42


Q1

Q2

Yes

Q3

0% 20% 40% 60% 80% 100%

No244 7

239 6

189 62

Figure 4: Questions 1 to 3

Q4 User

0% 20% 40% 60% 80% 100% Both

Taxpayer 19052 10

Figure 5: Question 4

Q5

Q6

Yes

0% 20% 40% 60% 80% 100%

No212 118

289 46

Figure 6: Questions 5 and 6

3. Objectives and tests: Questions 7-10

Q7 Do you agree that the objectives of the managed migration system shouldbe focused primarily on economic benefit to the UK?

Q8 If managed migration were intended to meet non-economic benefits whatshould they be and how would you measure them?

Q9 How would you rank the proposed tests in order of priority?

Q10 What can we do to make the system robust against abuse, whilst stillbenefiting from migrants working and studying in the UK?

Quantitative analysis

The proposed tests were ranked in the following order of priority: Objectivity,Transparency, Operability, Usability, Flexibility, Robustness, Cost effectiveness,Compatibility.

Qualitative analysis of responses to Q7 to Q10

• Majority agreed that the system should focus on economic benefit.

• Comments tended to come from those that disagreed that the system shouldfocus on economic benefit, instead feeling that the system should considerdiversity, integration into society, culture and movement of people.

• A range of non-economic objectives were suggested, the most common beingcultural, intellectual, joining of families, social integration, filling jobs that cannotbe filled by UK population and enhanced reputation of the UK.

• There were many suggestions for preventing abuse; some stakeholder suggestionswere: notification of students and workers not attending,Visas tied toemployer/educator, documentation that is harder to forge, increased resourcesfor more removals, better links between Government departments totrack/detect abuse, harmonising settlement and citizenship requirements withcountries abroad, better checks on sponsors and applicants during their stay.

43


Q7No

0% 20% 40% 60% 80% 100%

Yes 91153


4.Tiers 1 & 2: Questions 11-14

Q11 Which attributes do you think are most important for Tiers 1 and 2? Arethere any others?

Q12 Would the proposed outline design for Tiers 1 and 2 exclude any migrantswho enter the UK under the current Work Permit (UK) or Highly SkilledMigrant Programme (HSMP) arrangements?

Q13 Do you agree with the proposal for the Skills Advisory Body (SAB)?

Q14 Should employers be able to access migrant labour for non shortageoccupations?


The attribute considered most important by respondents is skills/qualifications,followed by English language ability.


• Most respondents agreed with the principle of a SAB with the following caveats:that the SAB should have adequate representation from both sectors andregions, it should assess shortages on a regional basis, and it should look acrossTiers – not just at Tiers 1 and 2. A view was expressed that the suitable remitfor such a body should extend to a general advisory and/or monitoringfunction, which would bring many benefits (Institute for Public Policy Research).

• Respondents generally felt that employers should be able to access migrants fornon-shortage occupations as the SAB might not react quickly enough to suddenshortages and because resident workers might not apply for the jobs.

• Respondents were split on the issue of migrant labour for non-shortageoccupations. For those agreeing, key themes were that employers should be ableto get the best person for the job, even if that meant searching internationally:posts should be short-term with no extensions; and that no dependants shouldbe allowed to accompany the migrant. For those disagreeing, the key messagewas that if the occupation was non-shortage, then it should be possible to fill itfrom the resident population.

44



Age English Job Previous Work SkillsLanguage Offer Salary Experience

Least 27% 4% 3% 34% 0% 0%

Less 19% 7% 5% 25% 2% 2%

Neutral 39% 12% 18% 32% 10% 7%

More 13% 52% 36% 8% 47% 27%

Most 2% 26% 38% 1% 40% 64%

Q12

Q13

Yes

Q14

0% 20% 40% 60% 80% 100%

No138 102

209 55

218 70

Figure 9: Questions 12-14

5.Tier 3: Questions 15-18

Q15 Which bodies or organisations should be involved in identifying labourshortages involving low or basic levels of skills?

Q16 Which responsibilities should be placed on employers or operators of lowskilled migrants?

Q17 Should employers seeking to fill particular vacancies with participants onTier 3 schemes be required to demonstrate they have attempted to fill thatvacancy with a migrant worker?

Q18 Should there be an English language requirement for Tier 3 workers?

Qualitative analysis


• The following organisations were identified as important in identifying labourshortages: employers, Home Office, operators, Skills Advisory Body, independentorganisations, CBI, trade unions, farmers union, job centres, Sector SkillsCouncils, Regional Development Agencies and relevant Governmentdepartments, Federation of Small Business, employment agencies and workforceplanners,TUC, NHS Employers and lSCS.

• Although the majority of respondents agreed with employers having todemonstrate that they had tried to recruit resident workers first, mostcomments came from those who disagreed.Their views were that no employerwill recruit internationally unless they have to because of the cost implicationsand that there should be an element of trust.

• Generally, respondents felt that a working knowledge of English was necessary,particularly in the health sector.

45


Administering compulsoryremittances

Providing induction to the UK

Employer

Selecting migrants overseas

0% 20% 40% 60% 80% 100%

Ensuring migrants are notworking illegally

Ensuring migrants return homeat the end of their leave

Both

Operator

95 27

5440

81 28

6354

60 70 28

35

60

42

15


Q17

Q18

Yes

0% 20% 40% 60% 80% 100%

No118 47

119 60



Q19 What are your views about what a points-based system for students mightmean in practice?

Q20 Should Leave to Enter or Leave to Return in the UK for students be linkedto a specific course at a specific institution?

Q21 Should educational institutions be required to help maintain the integrity ofthe immigration control in order to be able to issue certificates of sponsorship?



• In general, respondents agreed with the concept of a points-based system forstudents. However, there were some concerns raised. Respondents emphaticallyagreed (80%) with linking the visa to a specific institution, although a numbersaid that students should be able to change course at that institution withouthaving to make a fresh application.

• Respondents indicated that immigration control was a matter for theGovernment, and that institutions’ role was to assist rather than this being acentral purpose for them.

46


Q20

Q21

Yes

0% 20% 40% 60% 80% 100%

No243 62

168 37



Q22 What are the benefits to the UK of these kinds of temporary/exchangeworkers in Tier 5?

Q23 Is it right that the system should provide for them?

Q24 Should there be provision for Tier 5 workers to switch into Tiers 1 or 2?

Q25 Should additional conditions be attached?


Qualitative analysis of Q22 to Q25

• Respondents identified the following benefits of temporary/exchange workers:short term projects, filling shortages, enhancing the profile and influence ofUK companies in migrant workers’ counties of origin, knowledge transfer andexpertise in products from other countries, vibrant youth culture, knowledgeand abilities to help economic attitude, helps agricultural industry and culturalexchange. Some respondents were less positive, feeling that this was a ‘back-door’into the country and that there were sufficient unemployed workers already tofill vacancies.

• A further view was that workers from Tier 5 should be able to switch into Tiers 1 and 2 without having to return to their countries of origin first.

47

Analysis consultation responses

Q23

Q24

Yes

Q25

0% 20% 40% 60% 80% 100%

No236 27

174 24

100 81

Figure 13: Questions 23 to 25

8. Sponsors and Bonds: Questions 26-31

Q26 Do you think employers, educational institutions and other sponsors have aresponsibility to maintain the integrity of the immigration control?

Q27 What should employers, educational institutions and others be expected todo to carry out that responsibility?

Q28 What should be criteria for being on a list of recognised sponsors

Q29 To what type of cases would it be sensible to apply bonds?

Q30 How should a bond scheme be operated?

Q31 Is contracting out a better option than trying to combine it with existingmigration work?


Sponsors


• Views were expressed that the sponsor should report anyone they suspect tobe abusing the system, and carry out proper checks within their own system,making sure their own application procedure runs as it should (Source:Helterskelter Agency). In addition, sponsors should have a clear and specific dutyto undertake a Resident Labour Market Test when proposing to engage migrantlabour (Source: BECTU).

Sponsor Criteria

Typical suggestions were:

• Regular checks by immigration service;

• Responsible sponsors to be commended, irresponsible ones exposed, struck offand recorded or fined;

• List of recognised language schools;

• Important that size of company is allowed for so that SMEs are not disadvantaged.

Bonds

• Only in the hospitality sector were a majority of respondents in favour ofbonds. Overall the majority disagreed with the concept, feeling that such ascheme would mean that migrants would be paying to work and thereforewould disadvantage migrants from poorer countries.

48


Q26

Q31

Yes

0% 20% 40% 60% 80% 100%

No196 42

36 93

Figure 14: Questions 26 and 31

Illegal working: Questions 32-33

Q32 What improvements would help employers understand whether foreignnationals are entitled to work?

Q33 What additional services would help employers in ensuring that they arenot employing illegal migrant workers?


• Suggestions for additional services for the employers included: checkingdocumentation when taking copy of ID papers under employment legislation,central register, free legal advice for information/clarification, online facility tocheck if eligible to work, electronic online database that employers can searchto confirm migrants right to work, training by the Home Office.

49


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A Points-Based System: Making Migration Work for Britain ... · A Points-Based System:Making Migration Work for Britain A points-based system: Five Tiers 9. Underpinning the new system