MAC’s Shortage Occupation List Review: Engagement Opportunity with Immigration Policymakers?

The UK government’s independent advisor on immigration policy, the Migration Advisory Committee (MAC), has recommended the abolition of the Shortage Occupation List (SOL).

Alternatively, the MAC suggests eliminating the “going rate” discount associated with the SOL and significantly reducing the number (and nature) of occupations included on it. Currently, the MAC proposes eight occupations UK-wide and two for Scotland alone within the care, construction and fishing sectors for inclusion in any revised SOL, which currently has 38 occupations across a broader range of sectors.

Though such recommendations may not, intuitively, seem welcome (as the headline purpose of the SOL is to help reduce shortages that are felt across all sectors), the MAC’s intention in making them is to promote wage growth and worker protections. Listen to our recent Immigration Conversation podcast for more insights on the MAC’s recommendations.

Objectively viewed, the MAC’s recommendations encourage sectors that previously relied heavily on the SOL to resolve shortages to refresh their recruitment strategies. It is also an opportunity to recognize the advantages of the existing system and labour-supply environment that operate independently of the SOL's presence.

Post-Brexit, the UK introduced a new immigration system which brought EU citizens under its purview, but in doing so, liberalised the criteria for all: the operation of quotas and the Resident Labour Market Test were suspended, whilst skill and salary thresholds were significantly lowered for the new systems flagship Skilled Worker (SW) route. It has been estimated that the new system doubles the number of occupations that are eligible to apply under it. 

The MAC points to the accessibility of the SW route for many more occupations than is perhaps realised, and further recommends some that are not (such as sommeliers) be made eligible “skilled” occupations, as that would then render their inclusion in the SOL unnecessary to motivate recruitment. The acquisition of ‘Skilled’ status for other occupations may also negate their calls to be placed on the SOL.

SOL alternatives and proposed solutions

The MAC also highlights the wide pool of overseas labour already in the UK that is accessible without imposing immigration costs. Such cohorts include dependents, students and those in the country on humanitarian grounds. It commends policy changes to widen access to such pools, as well as the expansion of other, similarly more cost-effective immigration pathways, such as the Youth Mobility Scheme, that could help better address labour shortages in individual sectors.

The MAC realises the existing system—without the SOL (even combined with the expansions it suggests)—is not necessarily a complete or problem-free answer to labour shortage challenges. It recognises that there may still be room for salary discounts to play a part in addressing shortages and has presented the idea of an “Immigration Salary Discount List.”

In this context, the MAC has also recommended the opportunity to examine the position of individual sectors to identify bespoke and rounded sector-by-sector specific policy answers to shortages.

Abolition of the SOL and the UK immigration system

Given its influence on government migration policy, there could be general optimism that such expansions, alternatives and engagement spaces for the development of sector-specific immigration policy are likely to be adopted, and businesses reliant on the SOL should take up the case to ensure they are.

Indeed, with the government recently introducing visa fee increases that confirm the UK’s position of being amongst the most expensive immigration systems in the world, businesses are fully justified not only to ask for an account of what such fees deliver – including funding for training and development of workers in shortage as was historically promised – but more say on what immigration policies should be in place to advance their interests and that of UK as a whole. 

Looking ahead

Ultimately, the loss of the SOL may well be felt at a headline level, but it may not be materially missed in substantive terms in the period ahead. Sectors can look forward to the prospect of their circumstances being considered as the focus of policy change recommendations.

The potential abolition of the SOL could mark the beginning of a period of improved engagement by immigration policymakers with businesses. Many businesses want to contribute to the development of the immigration architecture within which they want to operate; they are now being called upon to do so.

What employers should do now to prepare

Employers should begin the process of auditing their overseas recruitment programmes in light of the MAC’s recommendations to consider their continuing viability, taking account of the other aspects of the UK immigration system that exist independently of the SOL, to establish a strategy to recalibrate if necessary.

It is imperative to begin such projective thinking as soon as possible: while limited to advising on migratory issues, the MAC is highly influential, and most of its recommendations are typically accepted by the UK government.

How Fragomen can help

Fragomen can help businesses review, plan, establish and operate current and future mobility programmes. The firm’s seasoned professionals provide sector-specific counsel on how to navigate immigration systems all over the world. 

Fragomen can also help businesses maximise the opportunity and impact of engagement with immigration policymakers. The MAC’s proposed changes to the SOL render this capability more important than ever.

Need to know more?

For further information or questions, please contact Senior Manager Shuyeb Muquit at [email protected].

This blog was published on 16 October 2023, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.