Migration Advisory Committee Publishes Shortage Occupation List Review

The situation

In March, the UK government commissioned the Migration Advisory Committee (MAC) to review the occupations and job titles that appear on the Shortage Occupation List (SOL). Following stakeholder feedback, the MAC has now published its review.

A closer look

• Recommended additions to the list. The MAC recommends adding a number of occupations to the SOL, including all roles related to senior health and social care, butchers, bricklayers, electricians and graphic designers. The full recommended list appears at pages 641-645 in the MAC’s report.  None of the occupations already on the SOL were removed.
• Additional funding. The MAC recommended that the government implement a more sustainable and generous funding model to deal with the significant shortage of individuals in healthcare roles.
• Region-specific lists. The MAC recommended creating separate additional shortage lists for Scotland, Northern Ireland and Wales, such as adding fishmongers, bakers and horticultural workers to a Northern Ireland-specific list, child caretakers and teachers for Scotland and health professionals for Wales.  These are in addition to the general, UK-wide SOL.

 

Background

• SOL details. The SOL is comprised of job roles that are deemed to be in short supply in the United Kingdom, so the government makes it easier for employers to sponsor non-European Economic Area national workers to work in these roles.
• How the SOL will work under the new immigration system.
  • In the new immigration system applicable January 1, 2021, if an individual is working in a shortage occupation role, they will receive a 20% discount on the specific salary threshold (the Standard Occupational Classification code minimum). The systems also allows them to be potentially sponsored if they are paid below the general salary threshold of GBP 25,600 per year, provided they are paid at least the minimum of GBP 20,480 per year. 
  • However, the significance of the SOL would be reduced compared to the current system, since under the new system, the Resident Labour Market Test would be eliminated, and the monthly cap suspended.

 

Impact

The recommended list would widen the SOL to include more occupations below degree level, including several occupations in the care sector.  This will make it easier for overseas workers to be sponsored in these categories by offering a reduction of 20% in the minimum salary level. 

The addition of an occupation to the SOL has only a minor effect on the government fees and taxes associated with sponsorship, however.

Looking ahead

The MAC recommended that the SOL should be reviewed on a regular timetable rather than an ad hoc commission basis, with a minor review in 2021 and major review in 2022, followed by an annual review and major review every three years. There is not expected to not be another review until the labour market returns to normal after the impact of COVID-19.

Though the UK government is not required to adopt recommendations from the MAC, they are likely to do so as part of the rollout of the Skilled Worker route starting January 1, 2021. 

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].