Limits on non-EU migration

Theresa May has announced that there will be a consultation process ahead of a permanent annual cap on non-EU migration. In the interim period, the UKBA will attempt to reduce the numbers of migrants coming to the UK by 5%.

We are able to confirm the following:

1. the first full annual limit on non EU migration will be implemented in April 2011. There will a number of interim measures to prevent a surge in migration which will be introduced on 19 July;

2. the MAC will conduct a full consultation process in relation to the levels of the limits of immigration and will report in September 2010. This will not be restricted to key stakeholders;

3.  numbers of non EU migrants migrating to the UK will be reduced by 5% between 19 July 2010 - April 2011 to 24,100;

4. the new measure will distinguish between the different tiers and categories of the PBS.

Interim Changes: Likely measures

We understand that the following are the likely interim changes:

1. Tier 1 (General)

• Out of country applications limited to 5400
• No limit on in country applications
• Pass mark raised by 5 points

As yet there is no indication of how the quota will be administered.

2. Tier 1 (Post Study Worker)/(Investor)/(Entrepreneur)

• All unaffected

3. Tier 2 (General)

• Applications are limited to 18700. UKBA will contact Sponsors regarding the implementation of the limit

4. Tier 2 (ICT)

• Unaffected

Conclusion

If correct, it is obviously very good news for global employers that the quota is not being applied to the Tier 2 (ICT) category. However, this may cause issues if there are permanent transfers to the UK and we have previously looked to Tier 1 (General) to provide a solution as Tier 2 (ICT) no longer leads to settlement. However, as there is no cap on in-country Tier 1 (General) applications, we may be able to switch individuals to Tier 1 (General) status once they are in the UK if they wish to accrue time towards settlement.