Interim Limit Imposed on Skilled Non-EU Migrant Workers
29th June 2010
There is to be a temporary cap on the number of people allowed to come to work in the UK from outside the EU.
The Home Secretary, Teresa May, announced this week that a limit is to be imposed on the number of workers to 24,000 between now and April 2011. A permanent limit will be introduced after that.
The Government aims to scale back net migration to levels last seen in the 1990s of tens of thousands rather than hundreds of thousands. The limit on migrants from outside Europe is just one measure in a series to help the Government achieve its target.
In a bid to prevent a rush on applications to work in the UK between now and April next year when the permanent limit will come into force, the Government will enforce an interim limit which from 19 July 2010.
Michael Pitt, Employment partner at Pearson Hinchliffe Commercial Law, explained: “By putting in place an interim limit The Government wishes to prevent a rush of applications and maintain the 2009 level of work visas issued, in effect stopping a ‘closing down sale’ effect by saying, if there are tighter restrictions coming down the line, there is a chance that migrant workers might try and duck in before creating a surge in applications in advance of the permanent annual limit being imposed next April – the opposite of the desired result. That seems sensible as you only need to do that if you are planning to announce tight restrictions in the future.”
Consultation to be launched
Details of the final limit and how it is to be achieved will follow a 12-week consultation with businesses.
The Government hopes that the results of the consultation will pave the way for 'fundamental changes' to the way in which non-EU workers are to be selected to come to the UK to work.
Exemptions to the cap on skilled migrant workers
Michael Pitt added: "Although there are an number of exemptions to the cap, nearly half of the skilled migrants who come to Britain by many accounts, the Government must be mindful of stifling economic growth at such a critical time for the UK economy."
The Liberal Democrats had demanded "flexibility" in the annual limits so that internal transfers of staff by mutinational companies, ministers of religion and elite sports people".
Critics if the immigration limitations
The clampdown is not without critics from a wide range of stakeholders from within the Coalition Government to employers groups and educational institutions who rely on bringing people in from abroad. The Guardian last week reported that:
“The education secretary, Michael Gove, and the universities secretary, David Willetts, privately warned last week that too rigid an immigration cap could hit Britain's competitiveness and reputation among top overseas students. The business secretary, Vince Cable, voiced his concerns in public about a too-inflexible cap.”
John Philpott, chief economist at The Chartered Institute of Personnel and Development, said: "Employers will not look on this favourably. They will be weary of any measures that make it difficult and more costly to hire the staff that they need." However, he conceded the health care proposal was "sensible" if it encouraged employers to recruit British workers before going abroad.
The Liberal Democrats, who are part of the Coalition Government, opposed the Conservatives' policy during the election campaign.