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Points based immigration scheme

A new direction


In March 2006 the Government published more details on its intentions to move towards a points-based system to manage immigration. Businesses that employ, or intend to employ, non EU nationals need to be aware of the changes. The background to the change is that, under the current work permits scheme, each work permit application requires a large amount of information and evidence to be provided by the employer. In addition the two-stage process of (1) obtaining a work permit and (2) entry clearance or leave to remain, could lead to complications – it is possible for the employer to be granted a work permit but for the migrant to be subsequently turned down for entry clearance or leave to remain under a separate decision based on different criteria.

The new system, which will not come into force before mid 2007, is designed to achieve the following key outcomes:

  • Better to identify and attract migrants who have most to contribute to the UK
  • To create a more efficient, transparent and objective application process
  • To improve compliance and reduce scope for abuse

The changes will introduce a five-tier framework, designed to simplify the system so that applicants can easily identify the category that applies to them. The proposed tiers are:

  • Tier 1: Highly skilled individuals to contribute to growth and productivity
  • Tier 2: Skilled workers with a job offer to fill gaps in the labour force
  • Tier 3: Limited numbers of low-skilled workers needed to fill specific temporary labour shortages
  • Tier 4: Students paying for tuition in the UK
  • Tier 5: Youth mobility and temporary workers: people allowed to work in the UK for a limited period of time to satisfy primarily non-economic objectives

For each tier, applicants will need sufficient points to obtain entry clearance or leave to remain in the UK. Points will be scored for attributes, which predict a migrant’s success in the labour market, together with control factors, which relate to whether someone is likely to comply with the conditions of their leave.

Applicants in tier 1 do not need to have a pre-existing job offer to seek work in the UK or to set up a business. No certificate of sponsorship is required because no sponsorship of individuals in this category is required.

Applicants in tiers 2 – 5 will need to provide a certificate of sponsorship from an approved sponsor when making their application, to act as an assurance that the migrant is able to do a particular job or course of study and intends to do so.

In order to sponsor migrants, employers will need to make an initial application to register with the Immigration and Nationality Directorate.

Once a migrant is working for them, sponsors will have certain reporting obligations in relation to how the relationship proceeds and its termination.

The Government envisages that the new system will be introduced tier by tier and that further impact assessments will be conducted prior to its introduction.

If you require any further information about the services that we provide or would like to review your financial planning position, please contact us

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