MAC calls for evidence on level of annual tier 2 limit 2012-2013

October 26, 2011

The Migration Advisory Committee has been asked by the UK”s Government to advise on what level the annual limit for Tier 2 (General) of the Points Based System should be in 2012/13, and on some associated policies including the minimum skill level for Tier 2, intra-company transfers and the Resident Labour Market Test.

The Government has stated that its aim is to “deliver an improved migration system that commands public confidence and serves our economic interests…the Government anticipates that net migration will be in the tens of thousands in future.”  Whether this target is achievable, let alone desirable, is a topic of great contention in the current media. 

However, in the context of these bold statements, the MAC has been asked to consider:

• At what level should the limit on Tier 2 (General) be set for 2012?
• Is the 40,000 minimum salary threshold for intra-company transfers seeking to stay for at least 12 months an appropriate proxy test to ensure that migrants meet the General Agreement on Trade in Services (GATS) definition of senior Managers and Specialists?
• Should the £40,000 be a national rate or allow for regional variations in pay?
• Whether the inclusion of non-salary remuneration (such as living, accommodation allowances) undermines the use of the £40,000 threshold as a proxy test of skill level
• If the threshold for Resident Labour Market Test (RLMT) exemption was lowered from £150,000 to £70,000-£100,000, what would the impact be on demand for Tier 2 visas, the resident labour force and employers?

The MAC has issued a request for evidence on these important questions, and if you have any views on the topics discussed above, please contact us with your comments and suggestions.

The deadline for responses is Wednesday 21 December 2011.