Immigration - Points Based System

Written evidence from the Home Office

Immigration Points Based System - work routes

At the hearing on the Immigration Points Based System on Monday 28 March, we undertook to provide the Committee with some additional evidence in the form of a written note. The information requested is set out below.

Intra Company Transfers

1. The following table provides details of the top 10 companies seeking Intra Company Transfers. As requested, it also shows where headquarters are based and whether there are company subsidiaries in India.

Salary level and checks on Intra Company Transfers

2. The introduction of the Points Based System established clear lines of accountability for employers that did not exist under the previous work permit arrangements. There is now a clear link between the compliance of those an employer brings to the UK and the ability of that employer to continue to sponsor overseas workers. The onus of providing accurate information rests firmly with sponsoring organisations.

3. The Agency's primary method of checking the veracity of ICT earnings is through a sample, reviewed by a UK Border Agency visiting officer during a post licence visit. At this point we check a selection of paper files to ensure the salary and allowances meet the appropriate thresholds. Prior to this, at the visa application stage, where there are concerns regarding the proposed earnings as detailed on the employer's Certificate of

Sponsorship (CoS), the Agency's overseas locations have the facility to refer these cases for further checks.

4. The new £40,000 ICT threshold can be made up of both the salary and allowances, but not bonuses and will be subject to thorough compliance checks. Allowances for accommodation must not exceed 30% of the total package.

5. In the period 28 November 2008 to 01 April 2011, the average salary including allowances on the CoS for ICT migrants was £63,105. The average allowances on the CoS for ICT migrants was £25,637. The median salary including allowances on the CoS for ICT migrants was £40,116, and median allowances were £21,600.

The proportion of Tier 2 applications from corporate companies

6. As of 29 March 2011, the breakdown of Tier 2 sponsor applications from companies, based on a measure of the size of the organisation, is as follows:

Visits to Sponsors since October 2010

7. As of 28 February 2011 the number of visits to Tier 2 Sponsors by UK Border Agency staff since October 2010 and their outcomes are as follows:

Breakdown by faith of Tier 2 migrants under the clergy occupation

8. As of 29 March 2011 1,599 Tier 2 migrants had been granted entry to the UK under the clergy occupation. The breakdown by faith is as follows:

Outcome of the 2,000 removals

9. As outlined in paragraph 3.9 of the National Audit Office's (NAO) report, since December 2008, the North East, Yorkshire and the Humber region have contacted 6,000 individuals and had success in encouraging 2,000 of these to leave the UK. A further 1,800 qualified for further Leave to Remain. Of the remainder, some will have outstanding further applications, some will be tasked for enforced removal and some are dealt with through contact management until they comply, or formal reporting arrangements are put in place. This is an approach we are rolling out across the country.

Current fee over cost recovery limit

10. The Agency is forecasting to receive approximately £807m total earned income in 2010/11. This is the same as the limit for over cost recovery.

Programme Costs

11. The total spend for the Points Based System programme is set out below against the initial budget.

The need to meet the ambitious deadlines for the published roll-out plan in 2008 and 2009 required an increase in resource that resulted in a programme spend as above. The Points Based System rolled out from February 2008 and the required IT for Sponsorship went live as scheduled in June and November 2008 and has operated successfully ever since.

12. You also requested information on the number of work permit holders who subsequently settled in the UK. As Jonathan highlighted, it is not currently possible to provide this information. With the launch of the new Immigration Casework System, over time we will be able to analyse this data.

1 April 2011