14.08.15
Migration Committee urges ‘caution’ over raising skilled migrants’ salaries
The government has been urged by the Migration Advisory Committee (MAC) to be “cautious” over any early decision to raise the minimum salary requirements for skilled migrant workers.
Ahead of its wider review of the Tier 2 route due later this year, the Committee in its ‘Review of Tier 2: An analysis of salary thresholds’ does not at this stage make recommendations on minimum salary thresholds for individual roles.
However, it did conclude that there is a good case for increasing the overall minimum threshold for Tier 2 (General) – currently £20,800 – because this was calculated in 2009 when the skill requirement for migrant workers was much lower than it is now.
Imposing a higher salary threshold on skilled overseas workers coming to Britain is part of the prime minister’s plan to cut non-EU migration, which in the past he said was “frankly too easy” for some businesses to bring in workers from overseas.
During the MAC’s consultation, the Department of Health (DH) said a change in arrangements for overseas workers in the NHS and care sector would make it impossible for employers to operate in accordance with the nationally-set pay arrangements which work on the basis of annual increments up to the maximum of their pay band.
The Department also expressed fears that expressed concern about the intention to restrict the ability for employers to recruit from overseas to occupations for which shortages are more localised and employers have demonstrated that there is no suitably qualified resident worker available to fill the role.
“This would have a deleterious effect and lead to unwarranted competition between employers seeking to manage local shortages and increased agency and employment costs, potentially leading to a market effect that creates a national shortage,” said the DH.
Professor Sir David Metcalf CBE, chair of the MAC, which was commissioned in June to carry out a review of the Tier 2 route, said: “We have examined the evidence concerning the possibility that migrants undercut British residents and we set out the possible reduction in skilled migrant inflows if the pay thresholds were raised from current levels.
“We urge the government to be cautious in making any significant changes to the salary thresholds at this stage because they should not be considered in isolation. Salary thresholds are closely linked with other issues the government has asked the MAC to consider in its wider review, including proposals for an immigration skills charge on migrant workers.”
Responding to the MAC’s comments, Janet Davies, chief executive & general secretary of the Royal College of Nursing, said rising demand for nurses has led to an increased need for skills and experience to come in to the country.
“Health care organisations have been getting in touch with the RCN telling us they have been struggling to recruit enough nurses,” she said.
“The MAC has listened to our evidence about the pressures that health services are facing and the government must now do the same."
In a response to MAC’s call for evidence, HCL Workforce Solutions highlighted the role recruitment of international staff can have in driving down costs for the healthcare system. They said that for every 1,000 nurses recruited overseas, £25m can be saved on approved agency rates.
Tijen Ahmet, immigration solicitor at SA Law, recently wrote for NHE on the issue of raising the salary threshold for Tier 2 migrants. She added the changes are intended to reduce the demand for migrant labour but will likely hit the NHS hardest, as the threshold is set at £35,000 gross per annum.