Getting ahead of Labour’s immigration proposals

On 12 May, the Prime Minister announced the government’s plans to reduce net migration and create an immigration system that is “controlled, fair and selective”.

The accompanying White Paper “Restoring Control over the Immigration System”, sets out how the government plans to do this.  The message within is that whilst migration is not in principle a bad thing for the country, the wrong type of migration is.

The research relied on by the White Paper indicates that over recent years we have seen a shift away from higher-skilled migration towards lower-skilled migration, a state of affairs which (so Labour says) has been further facilitated by the immigration reforms of 2020.  

The focus of these latest proposals, therefore, is to reduce the pressure on resources by: lowering the number of low-skilled and low-paid migrant workers (together with their dependants); minimising the ease with which migrant workers can enter the country with their dependants and then switch to different types of (longer-term) visa; and by creating a pipeline of skilled domestic workers.

The clear objective is for any entry into the UK to be genuine and appropriate, and there is no excuse for UK employers to be sourcing workers from abroad when, with targeted and sector-specific investment and training, the skills required by those employers could be homegrown.

Labours’ immigration proposals

Whilst the White Paper is a relatively readable 76 pages, the key points to note are:

• Changes to the skilled worker visa.  The skills threshold will be raised to degree level (rather than A-level) and the salary threshold will be increased to £38,700. The old rules will continue to apply to those currently on the skilled worker visa but those applying from overseas or switching from other routes will need to follow the new rules.

The government views raising the skills threshold as a way of preventing exploitation of workers, as the evidence suggests that higher skilled occupations have less exploitation.

• The length of time before migrant workers can apply for settled status will be extended from 5 to 10 years for all points-based routes. 

This change is designed to reinforce the idea that settled status is a privilege to be earned, not an automatic right.  

• Lower-skilled workers routes will only be available on a time limited basis and where there has been a long-term shortage of workers. The government plans to create a ‘Temporary Shortage List’ which will indicate which occupations are permitted to use this route.  In order for an industry sector to be included in the list, they will have to show that they have a workforce strategy in place to maximise home grown talent.

• End of overseas recruitment for social care visas. This will be subject to a transition period up to 2028. Those who are already in the country with working rights will, at that point, be permitted visa extensions and in-country visa switching.  

• 32% increase to the immigration skill charge. The increase will be used to support skills funding for priority sectors.

• Simplification of the ability of high skilled people to enter via the Global Talent and High Potential Individual routes.

• Introduction of a levy on higher education providers income from international students to be reinvested into the higher education and skills system.

• Strengthening of requirements that sponsoring institutions will have to meet in order to recruit international students and ensure that students are genuinely coming to the UK to study.  This will include a consideration (by the relevant sponsoring institution) of local impacts on infrastructure and housing.

• Reducing the period graduates can remain in the UK following their studies to 18 months.

• Strengthening of civil penalties for employers to facilitate illegal working.

To support these proposals, the government has set up a Labour Market Evidence Group  (LMEG) which will look at key sectors, training levels and participation by the domestic labour force.  It will focus, in particular, on sectors/occupations which it believes are central to industrial strategy, have a high reliance on migration and/or where key sectors are identified as requiring high levels of recruitment from abroad.  The LMEG will work in conjunction with Skills England to identify and implement improvements in skills provision.

Commentary

There is no doubt that the proposals will have a significant effect on those industries which are heavily reliant on lower-skilled workers.  Adult social care as well as hospitality and retail are all likely to feel a significant squeeze.

Furthermore, curbing the ability of adult social care providers from recruiting abroad will place additional pressure on an already buckling industry. 

Whilst the government hopes that the introduction of Fair Pay Agreements for adult social care will make the sector a more attractive option for domestic workers who may be put off by the associated low pay and poor working conditions, this will not necessarily solve the problem.  Adult social care may be regarded as low-skilled work but it does require a particular type of mindset.  These are skills that cannot necessarily be taught, nor indeed influenced by more favourable working conditions. 

Restricting the flow of migrant workers (whether high or low-skilled) from abroad will undoubtedly increase intra- and inter-sector competition to attract and retain the best talent.  Yet, in a labour market that is already creaking under the pressure of national minimum wage and NICs rises, what can employers do to ensure they are best placed to maintain staffing levels whilst avoiding significantly increasing pay?  Here are our top tips for ensuring your business is ahead of the curve:

• Working Conditions.  Consider what you can do to make the working environment more worker-friendly.  Look at shift patterns, flexibility, working culture etc.  Small tweaks may make a big difference.
• Review your pipeline of resource.  Partner with schools and higher-education colleges.  Offering work experience and internship programmes for students are a great way to identify the most promising talent for your business.   
• Work with apprenticeship providers and colleges to frame bespoke training programmes that will best meet the needs of your business.
• Contact your industry regulator or governing body, particularly if you work in an occupation with a skills shortage, to identify what they are suggesting to increase home-grown talent.  Contribute to any consultation they are undertaking in relation to the same.  Make sure you have your say.
• Collaborate with businesses within your sector.  If you believe your sector should be on the Temporary Shortage List, a team effort to influence the government to include you on it may be more effective.
• Keep an eye on the Autumn budget – particularly educational establishments – as this will set out details of the higher levy on international students.

Contact us

If you require further advice and assistance in relation to any of the matters raised above, please contact Prettys Employment Team on 01473 232121 or you can contact Sheilah at scummins@prettys.co.uk

You can also see our other employment law services here.