Migration Advisory Committee Call for Evidence: Tier 2 Review
Request for input from Directors of International/ International Office Staff
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The new government has reaffirmed its commitment to reducing net migration to the
tens of thousands.
As part of this the government has asked the Migration Advisory Committee (MAC) to
make recommendations on how the Tier 2 route might be re-designed to meet the
government’s goal of significantly reducing net migration
The MAC has already conducted a call for evidence on the Tier 2 salary thresholds
which closed in July (UUK submitted a substantive response to this)
The MAC is now conducting a wider review of the route
UUK is seeking evidence from its members on the implications of changes being
made to the Tier 2 route in relation to two areas of concerns: (1) the impact on
recruitment of international students to the UK and the career opportunities available
to them post-graduation and (2) the impact on universities as employers of significant
numbers of non-EU academics and researchers
We are seeking evidence from Directors of International to inform our response (we
are separately approaching HR Directors to inform our response on the staffing side)
UUK will also be working with a range of other sector bodies and other stakeholders
including UCEA, Research Councils UK and the Royal Society to inform its response
We therefore ask institutions to review the attached and submit comments by
Monday 31st August to Davina Foord at Davina.Foord@UniversitiesUK.ac.uk
Institutions are encouraged to submit their own individual responses to the call for
evidence which closes on 25 September 2015 – details can be found via this link
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/44142
9/Call_for_Evidence_Review_of_Tier_2.pdf.
Scope of the MAC Review of Tier 2
The MAC has been asked to advise the Home Secretary on changes to Tier 2 to address
concerns about the rising number of migrants in that route and reliance on them to fill
shortages. This should include advice on the following:

options to re-focus the route on areas where there are genuine skills shortages

how to limit the time that sectors can remain on a shortage list

the implementation of a levy on Tier 2 visas, to fund apprenticeships

restrictions on the automatic right of Tier 2 dependants to work

tightening up on the intra-company transfer (ICT) route, including applying the
immigration health surcharge to ICTs

raising the minimum salary levels that migrants have to be paid.
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Questions for consultation
The MAC review consists of 30 questions, a number of which have little or no relevance to
higher education institutions. Questions 21-30 are questions repeated from the MAC’s earlier
review of Tier 2 salary thresholds. For ease, UUK has extracted the questions of most
interest to Directors of International - these can be found in the remainder of this briefing with
accompanying commentary. A full list of the MAC’s questions can be found in Annex A.
Universities UK is keen to receive views and evidence from staff within international offices
with a remit for international student recruitment on how any changes to the existing Tier 2
route might affect those wanting to remain in the UK to work following completion of their
studies under a Tier 2 visa. We are particularly interested in your views (with any supporting
evidence) on how this in turn may affect international student recruitment within your
institution and the UK as a whole. Where possible, please seek input from colleagues
responsible for providing career advice to international student s.
--------MAC questions
1. What impact, if any, will reducing the level of Tier 2 migration have on the
economy? What are the reasons for your answer?
In the earlier call for evidence on Tier 2 Salary thresholds, UUK highlighted the enormous
contribution of international students and staff to the UK economy and the importance of a
meaningful post-study work offering to attracting international students.
Institutions are asked to provide comments on what impact a further tightening or re-design
of the Tier 2 route will have on international student recruitment, particularly in the context of
an increasingly competitive global environment.
UUK would be particularly interested in any country-specific recruitment trends experienced
by individual institutions, particularly where there has been a significant decline in numbers
in recent years. Any anecdotal evidence of the importance of post study work in particular
markets, and the anticipated impact on recruitment should the Tier 2 route be restricted
further, would also be extremely useful.
UUK would also welcome views on what impact it would have if Tier 4 students are forced to
return home to apply for a Tier 2 visa. This idea has been mooted in the national media
recently and appears to be a potential change that the government is considering. Would
this act as a significant deterrent?
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5. What will be the impact of restricting Tier 2 (General) to genuine skills shortages
and highly specialist experts?
UUK is extremely concerned that restricting Tier 2 (General) to genuine skills shortages and
highly speciality experts would further reduce the work opportunities available to
international students post-graduation. This would particularly damaging in light of the
relaxation of post-study work requirements so evidence in some key competitors.
Whilst skills shortages occupations are defined within the Shortage Occupations List, there
is currently no definition of ‘highly specialist experts’. UUK has previously noted that
academic staff are by their nature, highly skilled in their fields, even at a relatively early stage
in their careers. Universities UK would particularly welcome views on how this term should
be properly defined (by salary, qualification or otherwise) and on the impact of such a move
on international student recruitment.
6. How could a restricted Tier 2 (General) route maintain flexibility to include: a) high
value roles; b) key public service workers?
Institutions are asked to comment where possible on the extent to which international
students move into high value roles and key public sector worker roles on completion of their
studies. What impact would a more restrictive Tier 2 route have on this?
7. What evidence is there of significant regional differences in skills shortages?
Recognising that skills shortages and the availability of highly skilled staff varies significantly
by region, UUK would welcome any evidence of particular skills shortages within your region
and how international students are often helping to fill those gaps.
8. What evidence is there of the need to recruit highly specialist experts?
UUK is aware of highly specialised courses within universities which may attract a significant
number of international students. We would welcome any anecdotal evidence institutions
may have received from employers on the attractiveness of such graduates, particularly
where an international perspective and outlook may also be of value.
9. What would be the impact on business and the economy of restricting recruitment
to genuine skills shortages and highly specialised experts for: i. migrants switching
from the Tier 4 student route; ii. all other in-country applications?
Universities UK is concerned that any such policy change would significantly reduce poststudy work opportunities for Tier 4 students wishing to switch to the Tier 2 route following
graduation and would have a highly detrimental impact on the ability of universities to
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continue to successfully recruit international students in an increasingly competitive
marketplace. UUK would welcome members’ views on the impact of such a move.
14. Alternatively, is it sensible to leave the present Tier 2 (General) route intact and
achieve any reduction in economic migration by raising the pay thresholds only?
UUK has previously expressed concerns about raising salary levels above existing
thresholds and will be re-stating these concerns in its response. Any examples of sectors or
occupations where Tier 2 salary thresholds are already prohibitive would be useful.
Tier 2 Dependants
18. Dependants of Tier 2 migrants, such as partners, spouses and adult minors,
presently have the unrestricted right to work in the UK. The MAC is asked to consider
the impact of removing this automatic right:
a. How would removing the automatic right of dependants to work affect main applicants’
decision of whether to come to work in the UK?
c. How would removing the automatic right of dependants to work impact on: i. the economy;
ii. public finances?
Institutions are asked to comment on what impact removing dependants’ work rights would
have on Tier 4 migrants switching into Tier 2. Is this likely to have a significant impact and if
so, which Tier 4 students are likely to be affected most? For example, is this likely to impact
PhD students who tend to be older and more likely to have dependants?
UUK’s initial assessment is that the removal of work rights for dependants is unlikely to have
a significant impact on Tier 4 students switching into Tier 2 – however, we would welcome
insights to confirm or refute this view.
19. To what extent do the existing Tier 2 mechanisms and framework work optimally
to enable business to bring in the skilled workers that they require?
Institutions are asked to comment on whether the existing Tier 2 structure enables
businesses to recruit the skilled workers they require. Please give examples if you have
them of instances where employers have not been able to recruit the international graduates
they desire as a result of the current Tier 2 structure.
20. What changes would you make to the design of the route that would address the
issues identified and are not reflected in the changes discussed elsewhere in this call
for evidence?
Please respond as appropriate.
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Annex A: Full list of MAC Tier 2 review questions
1. What impact, if any, will reducing the level of Tier 2 migration have on the economy? What
are the reasons for your answer?
2. How well does the Resident Labour Market Test provide evidence that no domestic labour
is available? How could the test be improved?
3. Does the points mechanism operating in respect of the limit on Tier 2 certificates of
sponsorship prioritise those migrants of greatest benefit to the UK? How could its efficiency
at doing this be improved?
4. What criteria should be used to select jobs and occupations that are genuine skills
shortages and people that are highly specialist experts? What use should be made of
selection criteria such as salaries, points for particular attributes, economic need, number
and length of vacancies and skills level? What other criteria should be considered?
5. What will be the impact of restricting Tier 2 (General) to genuine skills shortages and
highly specialist experts?
6. How could a restricted Tier 2 (General) route maintain flexibility to include: a) high value
roles; b) key public service workers?
7. What evidence is there of significant regional differences in skills shortages?
8. What evidence is there of the need to recruit highly specialist experts?
9. What would be the impact on business and the economy of restricting recruitment to
genuine skills shortages and highly specialised experts for: I. migrants switching from the
Tier 4 student route; II. all other in-country applications?
10. How could the methodology to set the Shortage Occupation List be expanded to develop
a revised Tier 2 (General) which restricts the route to genuine skills shortages and highly
specialised experts only?
11. What occupations would you expect to see on an expanded shortage occupation list?
How does the occupation or job title you are suggesting satisfy each of our criteria in relation
to “skilled”, “shortage” and “sensible”? Alternatively, what other criteria does the occupation
or job title satisfy that meets the requirement of being in a genuine skills shortage or for
highly specialised experts?
12. What would be the impact of an expanded Shortage Occupation List on business and
the economy?
13. How far in advance can your organisation, sector or local area anticipate a potential
shortage in skilled labour?
14. Alternatively, is it sensible to leave the present Tier 2 (General) route intact and achieve
any reduction in economic migration by raising the pay thresholds only?
15. The MAC has been asked how to limit the length of time occupations can be classed as
having shortages: a. How long should any maximum duration be? b. What, if any, exceptions
should there be to this and why? Please provide evidence to support your answer.
16. The Tier 2 (Intra-Company Transfer) category is the most used route under Tier 2. The
Government has asked that the MAC consider the scope for action to tighten the intracompany transfer provisions:
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a. What criteria should be used to determine eligibility for the intracompany transfer route?
b. Subject to legal requirements, how can the Government tighten the Tier 2 (Intra-Company
Transfer) provisions? Should this route be limited to genuine skills shortages and highly
specialised experts only?
c. What will be the impact on businesses and the economy of tightening the intra-company
transfer provisions?
d. What will be the impact of a cap on the number of migrants a sponsor can employ based
on the percentage of each organisation’s UK workforce?
e. What impact does the Tier 2 (Intra-Company Transfer) route have on the domestic labour
market?
f. Should allowances continue to be included in the salary threshold for the Tier 2 (IntraCompany Transfer) route? If allowances were excluded from the salary threshold, what
would be the impact?
g. What is the impact on existing UK companies and UK resident workers of the current
intra-company transfer provisions in relation to companies outsourcing contracts with third
parties?
h. What would be the impact of putting tighter intra-company transfer restrictions on
companies which outsource contracts with third parties?
i. What is the impact on existing UK companies and UK resident workers of the use of the
current intra-company transfer provisions in relation to the IT sector?
j. What would be the impact of putting tighter intra-company transfer restrictions on the IT
sector specifically?
k. Is there a case for requiring intra-company transfer migrants to pay the immigration
healthcare surcharge? What are your reasons for or against this? What would be the impact
of making these migrants pay this surcharge?
l. Would restrictions to the intra-company transfer route have specific regional impacts?
17. The Government has asked that the MAC consider to which businesses a skills levy
should apply and the impact this may have, balancing the need to maximise the incentive for
employers to recruit and train UK workers with the ability of businesses to access the skilled
migrants they need. The proceeds of the levy would fund apprenticeships in the UK.
a. What would be the impact of different levels of levy on your occupation or sector? Would a
skills levy affect the way you recruit?
b. Should a skills levy apply to all businesses recruiting from outside the EEA? If not, to
which businesses should a skills levy apply and why? Why should other businesses be
exempt from the levy?
c. Should a skills levy be a one-off payment at the point of recruitment of a Tier 2 migrant or
should it be on an annual basis for the duration of the migrant’s stay under their initial Tier 2
visa?
d. Would a skills levy have specific regional impacts?
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18. Dependants of Tier 2 migrants, such as partners, spouses and adult minors, presently
have the unrestricted right to work in the UK. The MAC is asked to consider the impact of
removing this automatic right:
a. How would removing the automatic right of dependants to work affect main applicants’
decision of whether to come to work in the UK?
b. How many of your Tier 2 employees bring dependants? If so, do they work whilst in the
UK? Are they qualified to degree level? What occupations do they work in? If possible,
please specify occupations or job titles according to the SOC 2010 classification.
c. How would removing the automatic right of dependants to work impact on: i. the economy;
ii. public finances?
d. Would removing the automatic right of dependants to work have social impacts?
e. Would removing the automatic right of dependants to work have specific regional
impacts?
19. To what extent do the existing Tier 2 mechanisms and framework work optimally to
enable business to bring in the skilled workers that they require?
20. What changes would you make to the design of the route that would address the issues
identified and are not reflected in the changes discussed elsewhere in this call for evidence?
21. How do the existing salary thresholds for Tier 2 compare to, and impact on, the overall
wage distribution for each occupation?
22. What types of jobs and occupations are done by highly specialised and/or highly skilled
experts, and is pay a good proxy for this high level of specialisation or skill?
23. What would be the impact of increasing the thresholds to a level that better aligns with
the salaries of highly specialised and/or highly skilled experts?
24. What would be the impact of increasing the thresholds to a level that restricts the route to
occupations which are experiencing skills shortages skilled to NQF level 6 or higher?
25. What would be the impact of increasing the Tier 2 minimum thresholds from the 10th to
the 25th percentile for each occupation for new entrant workers?
26. What would be the impact of increasing the Tier 2 minimum thresholds from the 25th to
the 50th or 75th percentiles for each occupation for experienced workers?
27. As an employer, what would be the impact of increasing the Tier 2 minimum thresholds
on: a) hiring migrant workers from outside the EU; b) hiring migrant workers from within the
EU; c) hiring natives?
28. Are there additional national pay scales or sources of salary data that should be used to
set the thresholds?
29. What other appropriate measures would you like to see for determining the minimum
salary thresholds?
30. Should the minimum salary threshold take account of variations in regional pay? If so,
how?
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