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Migration Advisory Committee to examine Tier 2 visa system as Government seeks to reduce demand for migrant labour

Summary

David Cameron says it has been too easy for businesses to recruit from overseas, asks MAC to advise on what more can be done to lower non-EEA migration

By EIN
Date of Publication:
10 June 2015

David Cameron said at Prime Minster's Questions today that the Migration Advisory Committee (MAC) is to consider new measures to reduce demand for migrant labour.

"This government is on the side of working people: in the past, it has been too easy for businesses to recruit from overseas, undermining those who want to work hard and do the right thing. As part of our one-nation approach, pushed forward by my Immigration Taskforce, we have asked the Migration Advisory Committee to advise on what more can be done to reduce levels of work migration from outside the EU," Cameron said.

According to a Government press release, the MAC will examine how the Tier 2 (Skilled Work) visa system functions and it will consider how to reduce non-EEA economic migration.

The MAC will advise the Government by the end of the year on:

• restricting work visas to genuine skills shortages and highly specialist experts

• putting a time limit on how long a sector can claim to have a skills shortage

• a new skills levy on Tier 2 visas to boost funding to UK apprenticeships

• raising salary thresholds to stop businesses using foreign workers to undercut wages

The press release adds that the Home Secretary has asked the MAC to fast track proposals on raising the salary thresholds of Tier 2 visas in time for the Immigration Rule changes in the Autumn.

Simon Walker, of the Institute of Directors, told BBC News that the "supposedly lower" cost of migrant labour was a "red herring" as just 4% of the institute's members who hire from abroad do so because of cost of labour.

Walker said any increase in the cost of visas would be "particularly odd given how dependent the UK economy is on international skills and expertise."

He told the BBC: "The prime minister is absolutely right to focus on upskilling the domestic workforce, but there's no quick fix and it could appear misguided to risk harming the economy today in the hope of seeing results a decade down the line."