How immigration fees have become an employer dilemma in the UK
Published on 21st Feb 2024
What issues are UK employers facing given the increasing fees associated with sponsoring overseas workers?
In December, James Cleverly, the UK home secretary, announced future changes to visa rules in what he described as a “five-point plan" to reduce the net-migration figure by 300,000.
A five (six) point plan
The first stated proposal was to no longer allow health and care visa applicants to bring dependants. The home secretary also announced the introduction of an increase in the immigration health surcharge to £1,035.
The proposed skilled worker earnings minimum salary was also raised to £38,700, with an exemption for the health and care sector; while the shortage skills salary discount was to end and a new shortage occupations list created. He also proposed that the minimum salary for family visas would be raised to £38,700. It was also announced that the Migration Advisory Committee has been asked to review the graduate route.
Sharp-minded readers will note that the "five-point plan" actually has six points.
Plan raises concern
The government's proposals raise a range of concerns. It has long been a fundamental belief that any economic migration policy that is dictated or determined on a numerical basis as opposed to an economic one is doomed to fail. Of equal or greater concern is the knowledge the home secretary has of the current immigration rules. In wanting to curb dependants on health and care visa applicants, he stated that the dependants were "drawing on public services" despite their visas stating "no recourse to public funds".
Furthermore, increasing the minimum salary to qualify for a work permit to just under £39,000 will severely affect several industries that are already struggling – such as construction, hospitality and logistics. Unless there is a coordinated effort to reduce benefits paid to UK residents to encourage them to take up employment – and there had been no announcement at the time of publication – many companies may struggle to operate.
And if the aim is to end the "shortage skills" concessions (a shortage-skill role has a few minor advantages in a visa process), why review the list?
The review of the graduate visa route is alarming. Under current rules, international graduates are allowed to apply for a two-year visa that entitles them to work in the UK. Given the fees that UK universities charge international students, it is concerning that any move to reduce their ability to earn something back will seriously reduce the attraction of the UK. It is widely acknowledged that international students are a net contributor to the UK economy.
Osborne Clarke comment
As with most announcements, the devil will be in the detail. Aside from the rise in the health surcharge, no further detail has yet been released. Hopefully, by the time the immigration rules are amended, expert and informed advice will have been taken to ensure that any change has the effect of improving the UK economy and its attraction to international investment.
