Select Committee on Economic Affairs First Report


APPENDIX 11: IMMIGRATION POLICY IN THE UK BEFORE THE NEW POINTS-BASED SYSTEM

In early 2006, the Government announced its plans to reform the UK's immigration policies by introducing a points-based system for non-EEA nationals.[86] As explained in Appendix 12, the new system has five Tiers. Tier 1 for highly skilled workers started operating in February 2008, with the remaining few Tiers to be launched over the next two years.

The UK's policies for regulating immigration are extremely complex. Prior to the points-based system there are more than 80 different routes of entry for non-EEA nationals to the UK, each governed by specific rules and regulations. Table 1 shows the available Home Office data on the number of annual admissions of non-EEA nationals for the most important channels of entry that are associated with a limited or unlimited right to work in the UK' s labour market.

Table 1

Gross inflows of non-EEA nationals* with limited or unlimited right to work in the UK**, 2000-06


Thousands
2000
2001
2002
2003
2004
2005
2006

Studentsa
313.0
339.0
369.0
319.0
294.0
284.0
309.0
Family/dependants***a
74.2
78.0
85.4
87.2
94.3
104.9
118.4
Work permit holdersa
67.1
81.1
85.6
81.4
82.7
91.5
96.6
Working holiday-makersa
38.4
35.8
41.7
46.5
62.4
56.6
43.7
Seasonal Agricultural Workersa
10.1
8.4
16.9
20.7
15.0
13.0
14.2
Domestic workersa
14.3
10.5
10.1
10.6
10.4
10.1
12.5
UK ancestrya
10.9
10.7
10.4
9.2
7.7
8.3
8.5
Au-pairsa
12.9
12.0
12.8
15.3
5.6
2.4
1.8

Sector-based Scheme workersb
x
x
x
7.8
16.9
7.4
Highly Skilled Migrant Programmeb,c
x
x
1.1
3.6
7.4
17.6


* The figures include EU10 nationals until May 2004, and exclude them afterwards.
** Immigration channels that are not associated with a right to work—such as asylum seekers (24 thousand in 2006) and ordinary visitors (5.7 million in 2006)—are excluded from Table 1. Note that some migrants entering on visitor visas may switch to other visa categories after entering the UK.
*** Family/dependants includes husbands (14.2 thousand in 2006), wives (26.7 in 2006), fiancés (male and female, 6.1 in 2006), children (5.8 in 2006), dependants of work permit holders (48.5 in 2006) and dependants of students (17.0 in 2006).
Sources: a Home Office (August 2007, Tables 2.2, 2.4, 2.5, 2.6)
b Salt and Millar (2006)
c HSMP Services UK (http://www.hsmp-services.co.uk/)

Work permits for skilled and highly skilled migrants

Not limited by a quota, the number of work permits issued to skilled migrants increased from fewer than 30,000 in the mid 1990s to an annual average of over 80,000 throughout 2001-04. Unless the vacancy falls under the list of "shortage occupations" drawn up by the Home Office, employers applying for work permits for skilled non-EU migrants need to prove that they cannot find a local (EU) worker to do the job ("labour market test"). The effectiveness of the UK's labour market test is unclear. Other countries' experiences suggest that labour market tests are very difficult to implement in practice, not least because employers have shown considerable ingenuity in ensuring that no local workers are found to fill their vacancies when it suits them. Employers can tailor the job description specifically to match the skills and qualifications of someone they want to hire from abroad.

In addition to the main work permit scheme for skilled migrants, the Government also introduced the Highly Skilled Migrants Programme (HSMP) in 2002. This points-based labour immigration programme aimed at attracting highly skilled migrants by offering them the opportunity to move to the UK without having a prior job offer. Migrants living and working in the UK on permits issued under the HSMP or the main work permit scheme had the right to apply for permanent residence ("indefinite leave to remain") after five years of residence in the UK. Both skilled and highly skilled work permit holders can bring spouses, partners and children as dependants to the UK (see Appendix 8).

Work permits for low-skilled migrants and employment-related permits

The UK's low-skilled immigration programmes for non-EEA nationals over the past few years did not grant migrants the right to family reunion or the right to permanent settlement in the UK. The list below shows the main programmes for admitting non-EEA migrants for low-skilled employment in recent years. Some of these programmes have very recently been restricted to Romanians and Bulgarians (who have been EU nationals since 2007):

The "Seasonal Agricultural Worker Scheme" (SAWS) admits a limited number of non-EU students for temporary employment (max six months) in agriculture; capped by a quota of 16,000 in 2006. In 2007, 40% of the quota had to be filled by Romanians and Bulgarians.

The "Sector Based Scheme" (SBS) allowed UK employers to recruit a limited number of non-EEA workers for temporary employment (max. one year) in selected low-skilled jobs in the hospitality and food processing sectors. When recruiting migrants through this scheme employers must pass a labour market test. Numbers were limited to a quota of 15,000 in 2005 and the hospitality programme ended in late 2005. Since 2007, the SBS programme is for Romanians and Bulgarians only (quota of 3,500 in 2007).

The "Au-pair scheme" is officially a cultural exchange scheme rather than a labour immigration programme, allowing nationals of certain countries to spend a maximum of two years helping private households in the UK for a maximum of 25 hours per week. There is no quota.

The "Domestic worker scheme" is for domestic workers who travel to the UK with their employers. There is no quota.

The "Working Holidaymaker Scheme" enables Commonwealth citizens aged 17-30 to visit the UK for an extended holiday of up to two years. During this period, working holidaymakers are allowed to work for up to twelve months. Again no quota applies.

Students

Non-EEA nationals may come to the UK as students if they have been accepted on to a course of study by an organisation which is on the register of education and training providers.[87] Student visas are issued for the duration of the course with a maximum period of four years. Time spent in the UK as a student does not count towards settlement and citizenship. Non-EEA nationals on students visas may legally work up to 20 hours during term-time and full-time during vacations. However, they are not allowed to work in a "permanent" role, nor as self employed (see Appendix 8).

Table 2, taken from Salt and Millar (2006), shows the total inflow of all foreign workers (including EEA workers) by channel of entry in 2005 (but note that this table excludes students who have a limited right to work in the UK).

Table 2

Foreign labour inflows by route of entry; 2005


  
Number
Per cent

Worker registration scheme a
194, 953
48.6
Work permits b
86,191
21.5
EU and EFTA c
35,200
8.8
Working Holiday Makersd
20,135
5.0
Highly Skilled Migrant Programme b
17,631
4.4
Seasonal Agricultural Workers Scheme b
15,455
3.9
Domestic Servants e
10,100
2.5
UK Ancestry e
8,260
2.1
Sector Based Schemes b
7,401
1.8
Au Pairs e
2,360
0.6
Science and Engineering Graduates Scheme
2, 699
0.7
Ministers of Religion e
530
0.1
Total
400,915
100.0


Sources: a - Home Office; b - Work Permits (UK); c - IPS (latest data are for 2004); - UK Visas; e - IRSS admissions



86   Home Office (2006), "A Points-Based System: Making Migration Work for Britain" http://press.homeoffice.gov.uk/press-releases/points-based-migration Back

87   See http://www.bia.homeoffice.gov.uk/studyingintheuk/howtocometostudy/  Back


 
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