Points based immigration system on course as planned for January

Claire Davies Director provides an update.

The UK’s points-based immigration system is on course to be introduced in January as planned, having passed the crucial second reading stage in parliament.

The Immigration Bill introducing the system was approved by 351 votes to 252.

Unless there is any unforeseen parliamentary opposition before the bill receives Royal Assent, free movement will end and the UK will introduce a points-based immigration system from 1 January 2021.  The new system will treat EU and non-EU citizens equally and transform the way in which all migrants come to the UK to work.

Under a points-based immigration system, points are assigned for specific skills, qualifications, salaries and shortage occupations.  Visas are then awarded to those who gain enough points.

This represents a significant change for employers in the UK, who will need to adapt.  The government has issued a guide to the new system, setting out the steps employers can take to prepare.

These are some of the key points that employers may find useful.

EU citizens already living in the UK

The new system will not apply to EU citizens living in the UK by 31 December 2020.  They and their family members are eligible to apply to the EU Settlement Scheme and have until 30 June 2021 to make an application.

As a transition measure, employers can continue to accept the passports and national identity cards of EU citizens as evidence of their right to work up until 30 June 2021.

Skilled workers

From 1 January 2021, anyone coming to the UK to work will need to demonstrate that:

• they have a job offer from a Home Office approved sponsor
• the job offer is at the required skill level – RQF 3 or above (A Level and equivalent)
• they speak English

In addition to this:

• if they earn more than the required minimum salary threshold, they are eligible to make an application
• if they earn less than the required minimum salary threshold, but no less than £20,480, they may still be eligible if they can demonstrate that they have a job offer in a specific shortage occupation or a PhD relevant to the job.

Anyone coming to work in the UK will need to be paid the higher of the specific salary threshold for their occupation – the ‘going rate’ – and the general salary threshold.  However, some applicants will be able to trade characteristics, such as their qualifications, against a lower salary.  The general minimum salary threshold will be £25,600.

Identifying whether a job meets the required skill level

The Immigration Rules will be updated in order to expand the list of occupations that will be eligible for the Skilled Work route. This will be based on the advice already published by the Migration Advisory Committee.

CharacteristicsTradeablePointsOffer of job by approved sponsorNo20Job at appropriate skill levelNo20Speaks English at required levelNo10Salary of £20,480 to £23,039Yes0Salary of £23,040 to £25,599Yes10Salary of £25,600 or aboveYes20Job in a shortage occupation as designated by the Migration Advisory CommitteeYes20Education qualification: PhD in a subject relevant to the jobYes10Education qualification: PhD in a STEM subject relevant to the jobYes20

A total of 70 points is needed to be able to apply to work in the UK

Highly skilled workers

From January 2021, the current Global Talent route will open to EU citizens on the same basis as non-EU citizens. This means the most highly skilled, who can achieve the required level of points, will be able to enter the UK without a job offer if they are endorsed by the relevant competent body.

In the longer term, an unsponsored route for highly skilled workers will be introduced. This would allow a small number of the most highly skilled workers to come to the UK without a job offer.

Lower-skilled workers

There will not be an immigration route specifically for those who do not meet the skills or salary threshold for the skilled worker route.

The new immigration system provides greater flexibility for employers with changes to salary and skills thresholds. Employers can also benefit from the youth mobility scheme. The UK has arrangements in place with eight countries and territories to enable around 20,000 young people to come to the UK each year.

Becoming an approved sponsor

Employers not currently approved by the Home Office to be a sponsor should consider applying now if they think they will want to sponsor skilled migrants, including from the EU, from early 2021. Visit ‘UK visa sponsorship for employers’ on GOV.UK.

You need to apply to be a sponsor if you want to recruit workers from outside the resident labour market from 1 January 2021. Until then current immigration rules will apply.

You do not need to be a sponsor to employ someone from the resident labour market with an existing right to work in the UK. This includes EU citizens with settled or pre-settled status, and non-EU citizens with indefinite leave to remain in the UK.

Please contact the employment team on 01228 516666 if you would like more information about this article or any other aspect of employment law.