UKBA EMPLOYMENT RELATED SETTLEMENT, TIER 5 AND OVERSEAS DOMESTIC WORKERS CONSULTATION SCOTTISH GOVERNMENT RESPONSE
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UKBA EMPLOYMENT RELATED SETTLEMENT, TIER 5 AND OVERSEAS DOMESTIC WORKERS CONSULTATION SCOTTISH GOVERNMENT RESPONSE Question(s) Response Question 1: Would creating clear Greater clarity in the system would certainly be desirable. Through the Scottish Government’s categories of temporary and Relocation Advisory Service, we have received anecdotal information from customers that permanent visas help migrants and they find the current system complex and confusing and problems have arisen when the public better understand the individuals and sponsor employers have not fully understood what was required of them. immigration system? Whilst the principle of establishing a more transparent and coherent system is desirable, some of the proposals set out in this consultation may have the potential to confuse the system even further. Therefore we would urge the UK Government to ensure that clarity is considered a high priority in the final decision making process. Question 2: Should exceptional Exceptional talent migrants should have an automatic route to settlement. Only a small talent migrants have an automatic number of people are eligible for this route and allowing them an automatic route to settlement route to settlement after could help promote a positive image of Scotland and the UK as an attractive place for the 5 years? brightest and best the settle. The current cap of 1000 people for the Tier 1 Exceptional Talent visa remains a concern. The cap may result in the exclusion of talented people who we might want to encourage to live in Scotland, especially those from occupations which may not command significant salaries (such as artists and performers). The value of such people is not necessarily easily measureable in financial terms, although their longer term economic value may be significant. If Tier 1 becomes the only route to permanent settlement then this could significantly impact on the UK’s overall attractiveness to such people. Question 3: Should temporary leave Tier 1 migrants by definition are, on the whole, significant contributors to the UK and have a for Tier 1 migrants be capped at a Tier 1 visa because they have been identified as desirable people for the UK. If the UK
maximum of 5 years (those who Government is serious about wanting to attract the brightest and the best, it does not seem wish to stay longer will be obliged to sensible to limit this group’s interaction in the UK and further restrictions may deter these apply for settlement)? individuals from coming to the UK in the first place. In particular this group may include international business people who have assets in the UK but spend a lot of time travelling for their work and may not wish to apply for settlement, or may not have spent enough time in the UK to do so. The requirement to complete a Life in the UK test may also deter some people, who do not intend to apply for settlement, from coming to the UK in the first place. Question 4: Should temporary leave Stakeholders in Scotland have expressed to us significant concern about this proposal and for Tier 2 migrants be capped at a provided various examples of where imposing an arbitrary 5 year limit may impact on maximum of 5 years? employers and the economy. Question 5: If you answered ‘yes’ to For example, we have heard from some Universities and academic institutions that many question 4, should a Tier 2 migrant who has completed 5 years in a academic projects can last beyond 5 years. In order to compete internationally, these temporary capacity be permitted to institutions must be able to attract academics, with very specific and niche skills, from around re-apply for a Tier 2 visa after they the world. Many of these people do not have the intention of settling in the UK beyond the life have left the UK? of their project but need to be certain that they will be able to complete their work. Question 6: If you answered ‘yes’ to This principle also applies to other sectors, for example the medical profession. Qualifying as question 5, should there be a grace a consultant takes at least 8 years after completion of medical school, meaning producing period (say 12 months) before each consultant will typically take a minimum of 13 years. The impact of setting a short term resubmitting a further application immigration time cap may lead to us losing existing skilled migrants, or being unable to attract for a Tier 2 visa? those skilled people who are making a valuable contribution to provision of health services in the NHS. Many smaller and dental specialities struggle to recruit trainees, creating a shortfall of domestic supply for consultant-grade posts. For the UK to be ‘open for business’ employers must be able to attract the talented individuals they need to grow and support their businesses. They should be able to keep those people for the duration that is required by the job and the economy as a whole. In some cases people will
have received training and had time and money invested in them by their employer with a view that their skills will be passed on. It does not make sense to limit this positive contribution to 5 years. It would also be helpful to understand what evidence was used to establish why the UK Government is considering 5 years instead of any other length of time. Question 7: Should Tier 2 General No. With the withdrawal of the Tier 1 (General) route, Tier 1 is now a very narrowly defined become a wholly temporary route visa route into the UK. If it becomes the only route to settlement then the UK will be severely with no avenue to settlement? limiting the people it will be able attract and retain, potentially damaging our international competitiveness and external perceptions of the UK (and therefore Scotland) as a welcoming and global country. There will always be industries, specific jobs and priority sectors that require talented people from around the world to allow us to complete in a global economy. For our part, Scotland needs to be able to attract skilled and talented people to support businesses and economic growth and we are concerned that this proposal would be likely to deter talented people from choosing the UK to work and businesses from coming to UK in the first place. During a recent programme of engagement by the Scottish Government and the Alliance of Sector Skills Councils in Scotland, the Migration Advisory Committee (MAC) Secretariat heard directly from a number of employers in Scotland who said that, whilst generally they preferred to employ people from within the EU as it was easier and less costly, it was not always possible to find the right candidates, particularly in specialist areas. Employers also told the MAC that not being able to recruit the right talent, from across the world, could have significant consequences to the future economic success of their companies and organisations. These included: delays to projects; being able to meet customer demands; stunting the growth of small businesses; and even companies relocating or setting up offices abroad. We are very concerned that this proposal may lead to negative perceptions of the UK internationally. Question 8: If you answered ‘yes’ to As explained in question 7, we strongly oppose Tier 2 becoming a wholly temporary route.
question 7, should the following However, if the UK Government does insist on implementing this policy then it needs to be migrants be exempt from the policy flexible and to safeguard our ability to attract and retain those people of greatest economic, and continue to have a direct route social, and cultural value to Scotland. to settlement? • Those earning over £150,000? We agree that high-earners, ministers of religion, sportspeople and other areas of key • Sportspeople? importance to Scotland and UK’s economy should be excluded in order to maintain our • Ministers of religion? competitiveness in attracting the highest level of international talent. In addition, highly • Other? (Please specify) talented individuals in the creative industries should also be exempted as they are likely to have a much longer career than sportspersons. Scotland is a creative nation with global reach, therefore it is vital to us to be able to attract the brightest and best if we are to be competitive and prosper in the long term. In addition, there are many other occupations that are not highly paid, yet greatly contribute to the economy and society that could be considered. For example nursing is an area likely to be in great demand as our population is projected to age. The response below to questions 11 and 12 also set out a number of other areas that should be considered when deciding which migrants should be able to settle in the UK. Question 9: Should there be an If people have to fulfil certain criteria to gain settlement in the first place then this should in annual limit on the number of Tier 2 itself act as a filter to identify those people that the country needs. As such it is unnecessary migrants progressing to settlement? and overly complex to add additional limits, and counter to the UKBA’s stated purpose of simplifying settlement within the immigration system. Question 10: If you answered ‘yes’ to question 9, what proportion of Tier 2 migrants should be allowed to progress towards settlement? Question 11: How should we The Points Based System for Managed Migration (PBS) was designed to be fair and determine which migrants can apply transparent, with the accompanying shortage occupation lists supporting those areas of the for settlement? By setting objective economy where there was significant demand for skills from out with the EEA. Basing the
criteria or by random allocation? criteria for settlement on any considerations other than the UK’s (and Scotland’s) specific economic needs would be inconsistent with the central principal on which PBS was Question 12: If you answered ‘by introduced. PBS is designed to be flexible to the needs of the economy and its application setting objective criteria’ to question should support economic growth. 11, what criteria should we use to identify settlement candidates? Whilst wage levels are an attractive and simple way of establishing criteria for economic value, basing settlement on wage levels alone has many disadvantages. Wage level is a poor indicator of economic need, as occupations for which there exists identified skill gaps may not necessarily be high paid jobs. Such criteria would simply replicate the former Tier 1 (General) route where those earning enough will qualify regardless of the skills or occupation involved. In addition, London and the South East have significantly higher wage levels than the rest of the UK but at the same time a higher cost of living. Without taking into account cost of living considering wage levels alone would create an in-built bias towards those living in London and the South East, potentially increasing migration to parts of the country with the least need of it. If income levels are used at any point as a proxy for the economic value of individuals, the cost of living should also be taken into account to ensure that the differences in what money is worth across the country are fairly reflected to balance bias in the immigration system towards the South East and London. As this may be complex to administer, our proposal below around the geographical location of migrants could also help to balance this bias. PBS is about flexibility and attracting the right people to the UK, as such it would also be desirable and sensible to consider a criterion that complements the efficient workings of the UK labour market, ensuring that the demand for skills and labour is met across the different regions of the UK. For example, if the system chosen is points based, people could receive additional points for spending 3 out of the 5 qualifying years in Scotland (or other parts of the UK in need of migration). Or there could be a lower threshold of qualifying criteria for areas of the UK in greater need of migration. We understand this to be consistent with the Australian and Canadian application of PBS which allows particular geographic areas to designate particular occupations as in shortage altering the qualifying criteria to make these more attractive to potential migrants.
In Scotland we have identified a number of priority sectors for the economy (life sciences; financial services; electronic technologies; and energy) and these economic priorities should be considered when deciding who the most long-term economically valuable individuals for Scotland are. After all the Scottish Government is responsible for economic development, but lacks many of the important economic levers such as control over taxation and the benefits system. Changes to immigration may therefore impact more significantly on our ability to deliver devolved policy objectives than might be the case in England where there is greater scope to mitigate such impacts. For example, the Energy sector has been identified as a priority sector in Scotland. The Scottish Government has an ambitious target to reduce Scotland’s carbon footprint, and produce 100% of the country’s electricity from renewable sources by 2020. As many of the technologies associated with renewables are in their infancy, Scotland needs to be able to attract the people it needs to meet its particular skills demands, wherever they may come from. Restricting settlement rights reduces Scotland’s competitiveness with other countries for top global talent. If ‘competent’ bodies are to be used to help identify migrants it is important that the professional bodies chosen are competent to comment on Scotland’s economic need. Under the current devolution settlement, economic development is a matter that is devolved; therefore the Scottish Government and Scottish bodies should have a role in determining which skilled migrants are able to permanently settle here. Question 13: If some Tier 2 migrants This is difficult to answer without knowing what criteria will be used to identify those permitted are permitted to enter a route that to enter a route that leads to settlement. If the UK Government is keen to create a system that leads to settlement, when should the is more transparent and easier to understand, then there is a strong argument for the decision decision be taken? to be taken about whether the route can lead to settlement at entry clearance. This would also allow employers to plan ahead for Certificates of Sponsorship allocations and plan with some certainty for the future availability of labour to support their businesses.
Question 14: Should employers be There are real concerns that this proposal could place significant burdens on employers. We required to sponsor a Tier 2 General are concerned that it is small businesses who are the most likely to have hard-to-fill vacancies migrant seeking to stay in the UK which could impact on their growth 1 . At the same time, they are also the least able to afford permanently? additional expenses and so struggle with increasing burdens placed on them at a time where Government should be supporting them to help grow the economy. Settlement should remain Question 15: If you answered ‘yes’ the responsibility of the individual migrants. to question 14, should sponsorship be required at the 3 year or 5 year point, or both? Question 16: Should the employer This is related to our response at Question 14. It is small or medium sized businesses likely to be expected to pay to sponsor their be the least able to pay to sponsor their employee’s transfer to a permanent visa creating Tier 2 General employee’s transfer unfair advantages to larger organisations when competing for talent. If we want to continue to to a permanent visa? grow the economy then we should be supporting businesses to grow and employers already have to endorse settlement applications. Although the Scottish Government supports the long- term retention of skilled migrants who can support our economy and future prosperity, choosing to apply for settlement is a personal matter and should be the responsibility of the individual. Question 17: Should Tier 2 migrants Tier 2 migrants should be able to switch employers as they do now. If they are switching, the be able to switch employers as they new employer still has to show that they have tested the resident market and the worker still can now? has to meet the points requirements. It is therefore unnecessary to impose any further restriction on this. 1 “ Hard-to-fill vacancies as a percentage of employees were highest in the smallest workplaces (i.e. those employing 1 to 4 people) at 2.4 per cent; and lowest in the largest establishments (those employing over 250 people) at 0.2 per cent. Likewise, skill shortage vacancies as a percentage of employees is higher among smaller workplaces than larger workplaces.[…] Hard-to-fill vacancies as a proportion of all vacancies is higher in smaller establishments than larger ones. Skill shortages as a proportion of all vacancies is also higher in smaller establishments than larger ones.” (p16), http://scotland.gov.uk/Resource/Doc/344028/0114449.pdf. Skills in Scotland 2010 (March 2011).
Question 18: Should adult We appreciate that understanding English is an important part of integration. Spouses of dependants of Tier 2 migrants, who British Citizens, and those settled here already have to meet this requirement and if adult switch from a temporary to a dependants are allowed to work, then having English language will increase their job permanent route, be subject to an prospects and reduce the risk of them suffering unfair treatment. English language test? Question 19: If you answered ‘yes’ In terms of the level of English required it seems appropriate and fair that it is set at the same to question 18, what level of level as for those who are joining British Citizens (A1). However, it is important that other language requirement would issues are also considered and individuals are not disadvantaged because of disabilities, for be appropriate? example, where an individual has learning difficulties, a visual or hearing impairment or is dyslexic. Such considerations need to be built into the system. Question 20: If you answered ‘yes’ to question 18, which of the following should we test? (Reading, writing, listening, speaking?) Question 21: Should those who People should be aware from the outset that Tier 5 is a short-term and temporary route. enter on the temporary worker route However, there may be some issues with the route being restricted to a maximum of 12 be restricted to a maximum of 12 months. For example, whilst most performers and artists come for less than 12 months, there months leave to reinforce the may be some that take part in projects on a slightly longer term basis that could exceed the 12 temporary nature of the route? month limit slightly or get extensions to their projects. Question 22: If you answered ‘no’ to question 21 please explain why. Too short a period of leave in Tier 5 could therefore reduce the attractiveness of Scotland as a place for international talent.
Question 23: Should the ability to It is likely that a large number of those applying under this category are unlikely to bring their bring dependants in the Tier 5 dependents for such a short period of time therefore it would be helpful to know how many (Temporary worker) category be people would be affected by this. However, if someone is coming to the UK for 9-12 months removed? then removing the ability for temporary workers to bring their families might preclude people with dependents from coming here. This could be of particular concern for artists or Question 24: If we were to continue to allow Tier 5 temporary workers to performers who may often travel with dependents. bring their dependants, should those dependants’ right to work be In relation to question 24, we understand and support the reasons for seeking to restrict the removed? rights of dependents of Tier 5 workers to work. However, when making a decision about this it is worth considering whether this will deter some desirable temporary workers, who are not well paid and may rely on their partners to work, but are also skilled and have a positive impact on the UK (for example artists or sportspeople). Question 25: Should the minimum The purpose of the GAE route is to promote shared knowledge and skills. It cannot and should skill level in the government not be used to fill job vacancies. It would be arbitrary to impose N/SVQ 4 skill level when is authorised exchange sub-category already set at N/SVQ 3 for most schemes and has no impact on the labour market within the be raised to graduate level (N/SVQ UK. level 4 or above)? Question 26: Should the route for On the whole, these are likely to be unskilled jobs that can and should be filled from the domestic workers in private resident labour market and as such we would not oppose the closing of the route. In addition, households be closed? it remains a concern that these workers are not covered by the National Minimum Wage Act. Question 27: If we were to continue If the route does remain open we also agree that it should be capped at 6 or 12 months to to allow domestic workers in private households to enter the UK, should encourage employers to recruit from the resident labour market. their leave be capped (at a maximum of 6 months, or 12 months if accompanying a skilled worker)?
Question 28: Given the existence of It is of paramount importance to protect individuals from abuse or exploitation, therefore if this the National Referral Mechanism for has been included within the consultation because of concerns of a link between this route identifying victims of trafficking, and people trafficking then we agree that the unrestricted ability to switch should be removed. should the unrestricted right of Given that at the moment the worker has responsibility for informing the UKBA that they have overseas domestic workers in changed employer, we agree that this does not provide a strong enough mechanism to protect private households to change against abuse. employer be removed? Question 29: Should leave for The current arrangements around overseas domestic workers could allow low and unskilled private servants in diplomatic migrants access to the UK labour market. households be capped at 12 months? Arrangements around this route should therefore reflect the fact that the PBS is designed to provide the economy with the flexibility in needs to attract skilled workers and the brightest and Question 30: Should an avenue to settlement be removed from the best to support growth and promote Scotland and UK’s international competitiveness. overseas domestic workers (private servants in diplomatic households and domestic workers in private households)? Question 31: Should the right for overseas domestic workers (private servants in diplomatic households and domestic workers in private households) to bring their dependants (spouses and children) to the UK be removed? Question 32: If we were to continue to allow overseas domestic workers to bring their dependants, should those dependants’ right to work be removed?
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