Virginia, US

Feb 19 2020

Government Paper Published on Points-Based System Starting 2021

United Kingdom
  • The UK government published a paper outlining its plans for the new immigration system which will take effect from the beginning of 2021, when free movement from the European Union comes to an end. 

  • According to the paper, there will no longer be a requirement to offer positions to the resident labour market by way of advertisement, and the skills and salary thresholds will be significantly reduced. 

  • Sponsorship of workers from Europe will become significantly more difficult due to minimum skills thresholds, minimum salary requirements, sponsorship and reporting obligations, and other administrative burdens. 

The situation 

The UK government has published a paper outlining its plans for the new points-based immigration system, specifically for sponsored work routes, which will be phased in from August 2020 and fully operational from January 2021, when free movement from the European Union comes to an end. The paper deals with the position of those sponsored to come to the United Kingdom for employment. 

A closer look 

  • No more job advertisement requirement. There will no longer be a requirement to offer positions to the resident labour market. 

  • Confirmed job offer to be required. Foreign workers will require a confirmed job offer from a company holding a sponsorship license.  Companies that do not yet hold a sponsor license are encouraged to apply now. 

  • Lower skills level to be required. The job will need to be skilled to at least Regulated Qualifications Framework (RQF) Level 3 (which roughly corresponds to a skill level that would require completion of secondary education), instead of RQF level 6 as under the current system (which refers to degree-level work).  

  • Trading of points. Trading of points between salary and qualifications will exist to a limited extent for jobs paying less than GBP 25,600 per year.  Above this threshold, a confirmed job offer with a licensed sponsor and at the required skill level will be eligible for sponsorship. Jobs below this threshold may also qualify, for example if the worker has a PhD in a related field.  

  • Charges under new system. Sponsorship of all foreign workers will require payment of an Immigration Skills Charge and an Immigration Health Surcharge. 

  • No new self-employment route. There is no intention to create a route for the self-employed beyond the existing Innovator route. 

  • Regional variations for salary rules. The paper rules out the possibility of regional variations in salary requirements for regions, or Scotland. 

Impact 

Sponsorship of workers from Europe will become significantly more difficult due to: 

  • Minimum skills threshold; 

  • Minimum salary requirements; 

  • Sponsorship and reporting obligations; 

  • Government levies (skills charge and health surcharge); and 

  • Greater administrative burdens. 

Employers sponsoring foreign workers from outside Europe are already bearing these costs.  The new proposals will lower the thresholds to sponsorship, but not the costs. 

Looking ahead 

The government still aims to create a broader route into the United Kingdom for unsponsored workers.  Proposals will be explored with stakeholders during the remainder of 2020.  

The government will continue to consult on a route for skilled individuals without a job offer, which will be subject to a cap and may allow points for academic qualifications, relevant work experience and age. 

Brexit continues to be an incredibly complex and uncertain political issue that carries risks to your business. Please contact a Fragomen immigration professional for assistance in planning contingency arrangements. 

For more information, please visit Fragomen's dedicated Brexit sitewhich contains news, FAQs, and analysis/commentary in the form of blogs, videos, webcasts and events. 

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].