Return of the MAC: Shortage Occupation List Review and its Importance

MAC is back

At the end of February, the Migration Advisory Committee (MAC), the Government’s independent advisor on immigration policy, launched a Call for Evidence (CfE) to begin its latest review of the UK’s Shortage Occupation List (SOL). 

The SOL is the official list of ‘skilled’ occupations (presently defined as occupations at RQF3 or above) that have been assessed by the MAC to be ‘in shortage’ in the UK and whose shortage  is ‘sensibly’ addressed through the recruitment of overseas workers. The MAC’s last review of the SOL was concluded in September 2020.

A range of sectors have reported shortages since the last SOL review. The MAC’s current CfE provides an opportunity for businesses to put forth evidence to support claims for certain occupations to be included among a new SOL. The CfE is also the opportunity for businesses to voice other, wider concerns about conditions limiting access to internationally mobile labour of all skill levels.

The deadline for CfE submissions is 26 May 2023.

Current benefits of being on SOL

• Lower minimum salary threshold (compared to the Skilled Worker salary threshold, currently £25,600) of either £20,480 or 80% of the going rate for the occupation (whichever is higher).
• Reduced visa fees: Standard visa fees for a Skilled Worker visa application range from £625 (less than three years) to £1,423 (more than three years). For occupations on the SOL, the costs are £479 and £943 respectively, a reduction of just less than 25% and just more than 35% respectively for visas.
• Salary discount applies at the time of application for settlement (or Indefinite Leave to Remain).
• Supplementary work allowed when an occupation is on the SOL.
• Asylum seekers can apply to work in occupations on SOL whose claims have been outstanding for more than 12 months.

Despite the SOL, what are the barriers stopping employers from sponsoring employees?

• Skill Level. The only occupations skilled below the RFQ 3 threshold (A-levels or equivalent training or qualification) included in the current SOL (since 15 February 2021) are care workers. This followed recommendations made by the MAC when it reviewed the impact of the ending of freedom of movement and pressures during the COVID-19 pandemic on the adult social care sector. However, shortages of staff (typically for roles which are below the RQF 3 skills threshold and so not eligible for sponsorship) exist across a range of sectors, most notably hospitality, construction and aviation.

• Cost. The cost of sponsoring a foreign worker is high and can be a deterrent for sponsorship: a five-year Skilled Worker visa for a medium or large sponsor of a single applicant from outside the UK costs around £9,500. This includes costs for the Certificate of Sponsorship, Immigration Skills Charge (if no exemptions apply), Immigration Health Charge and the visa application fee. The government fees increase further if the sponsored employee has dependents.

MAC’s current SOL review

Although the MAC has already confirmed that it will recommend that the SOL salary threshold discount for those occupations, subject to a binding going rate, be abolished (to prevent undercutting of UK labour), and that care and senior care workers will continue to be included in any new SOL based on the evidence on which it previously based its recommendation, it will otherwise be reviewing afresh which occupations, both at RQF 3 and below RQF 3, should now be included in any new SOL. This is, therefore, a major review.

The SOL remains relevant and could be a quick and effective method to fill shortages, but only if employers and other stakeholders provide sufficient evidence to the MAC so they can present this to the government.

How to respond to the CfE

For this particular CfE, the MAC is requesting that evidence be submitted using the online form, which includes two core sections:

• Section B – this section asks for the relevant Standard Occupation Classification code an employer believes should be added to the SOL, and for presented data on the shortage.
• Section C – this section consists of questions the MAC will consider in answer to whether it is appropriate to recruit for foreign workers to resolve shortages.

In launching the CfE, the government has published a guide for submitting such evidence, which can be found here.

Why should employers participate in the CfE?

The MAC’s CfE is an opportunity for employers to provide evidence to the MAC on the shortages across their sectors. This could result in additional roles being added to the SOL, ultimately benefitting employers as they attempt to fill low-skilled occupation roles.

The MAC has specifically said that occupations for which no evidence is received through the CfE will not be recommended for inclusion in any new SOL and, specifically, that it requires compelling evidence for occupations at the RQF1-2 level be considered for inclusion on the SOL.

The MAC, while limited to giving independent advice to the government on migratory issues and making recommendations, is highly influential: most of its recommendations are typically accepted by the government.

Need to know more?

For further information on the MAC and its CfE, please contact Senior Managers Sharon Muir or Shuyeb Muquit at [email protected] and [email protected], respectively. Fragomen can help your business in its engagement with the CfE, including by arranging consultation calls, advising more precisely on evidence, preparing focused submissions and co-ordinating presentations within and across sectors all to maximise the opportunity and impact of engagement.

This blog was published on 1 March 2023, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please visit our dedicated COVID-19 site, subscribe to our alerts and follow us on LinkedIn, Twitter, Facebook and Instagram.