1 LIMITS ON NON–EU ECONOMIC MIGRATION A CONSULTATION Ian Robinson, Immigration Policy

RESTRICTED – POLICY FOR DISCUSSION 2 The Government is committed to reducing net migration to tens of thousands over the course of this Parliament

RESTRICTED – POLICY FOR DISCUSSION 3 ` We will deliver this through a range of reforms The Government’s coalition programme states “The Government believes that immigration has enriched our culture and strengthened our economy, but that it must be controlled so that people have confidence in the system. We also recognise that to ensure cohesion and protect our public services, we need to introduce a cap on immigration and reduce the number of non-EU immigrants.” The Home Secretary has also announced that the Government will be reviewing other routes, including those for students and family, in due course. We will apply transitional controls as a matter of course in the future for all new EU Member States. Our drive to reduce reliance on migrant labour will be underpinned by the Government’s Work Programme and skills agendas.

RESTRICTED – POLICY FOR DISCUSSION 4 Limits on non-EU economic migration will be delivered in three phases Interim limits: On the same day the Minister for Immigration laid changes to the Immigration Rules to commence, from 19 July, an interim limit to hold numbers coming through the main economic Points Based System routes at just 5% lower than last year, in order to prevent a surge in applications before we implement full annual limits. Consultation: On 28 June the Home Secretary launched a Home Office consultation asking how the mechanism for permanent limits can best operate in practice. On the same day she commissioned the independent Migration Advisory Committee to consult on what level the limit should be set at in the first year. Annual limits: Permanent annual limits will be implemented from April The final mechanism and the level of the limit will be shaped by the advice of the Migration Advisory Committee and the outcome of the limits consultation.

RESTRICTED – POLICY FOR DISCUSSION 5 We propose a merit based pooling system for highly skilled migrants The consultation contains a number of proposals for highly skilled migrants We propose that investors and entrepreneurs are excluded from these limits; We also seek views on how the UK can do more to attract these groups. We ask whether the criteria for Tier 1 should be raised and whether additional points should be awarded for e.g.: Skilled dependents Shortage skills English language There are various ways in which we could implement a limit on highly skilled migrants. A first come first served approach would be simplest with applications considered in order of receipt until the limit had been reached. against objective criteria. Those applications would then be ranked with the top candidates invited to apply for a Tier 1 visa. The system would be modelled on the very well regarded New Zealand cap and pool. Going into this consultation the Government favours a merit based pooling system. Highly skilled migrants would be able to express an interest in coming to the UK, scoring points

RESTRICTED – POLICY FOR DISCUSSION 6 We propose a ‘first come first served’ system for skilled workers but we want to co-design this mechanism with the employers who will use it The consultation contains a number of proposals for skilled migrants Going into this consultation the Government favours a ‘first come first served’ model for skilled migrants entering through Tier 2. We propose that the system is run on a quarterly basis and ask whether applications should be rolled across from one quarter to the next. We propose that intra-company transfers (ICT) are counted towards the Tier 2 limits. We ask whether transferees entering for less than 12 months should be exempted from the limit. We also propose that there is not a specific limit for dependants but that they are counted towards the overall limit. We ask whether the shortage occupation list and resident labour market test routes should be merged, and the advantages and disadvantages of doing so. We go on to ask over what timescale the routes could be combined and what that would mean for our advertising requirements

RESTRICTED – POLICY FOR DISCUSSION 7 We end by suggesting higher English language requirements, new responsibilities for PBS sponsors and asking how employers can support this agenda A good level of English language goes a long way to helping individuals to integrate in the UK and perform well in the work place. We ask whether there is merit in increasing English language requirements and to what level. The Government is committed to the principle of sponsorship, that the employers who benefit from migrant labour also accept wider responsibility for impacts. We ask whether responsibilities should be extended so that sponsors hold health insurance for their staff. Limits will reduce the supply of skilled migrants. To meet their demand for skilled workers employers are asked to consider what action they will need to take to train and source labour from the domestic market. We also ask whether sponsorship duties should be extended to insist that sponsors demonstrate a practical commitment to up skill resident workers.

RESTRICTED – POLICY FOR DISCUSSION 8 It is vital for the businesses that use our system to engage and respond to the consultation. You can do this on line or you can submit written evidence. Our consultation document can be found on our website at: us/consultations/limits-on-non-eu-migration/ us/consultations/limits-on-non-eu-migration/ What we need from you… We would also urge you to respond to the questions posed in the MAC consultation on where limits should be set: us/workingwithus/mac/mac-consultation-annual-limit/