UK immigration policy changes are discussed in the Migration Advisory Committee’s (MAC) 2024 annual report. The Labour government’s approach to managing migration since coming into power in July is reflected in this report. It offers suggestions for the future, along with essential insights into current trends and the impact of policy.
Linking Migration and Skills Policy
The study explores the connection between skill shortages and migration. Routes for work visas have been crucial in meeting the unique needs of specific industries. Due to an increase in foreign students and skilled worker visa holders, particularly in the health and care sectors, net migration increased between 2021 and 2023.
Visa approvals in this category have decreased drastically as a result of changes made in late 2023, including more uncompromising evaluations and a prohibition on dependents of care workers. The health and care industry continues to be a significant source of labour migration despite this reduction.
The administration wants to match domestic skill-building programs with migration policy. The MAC points out that improving domestic skills might not completely replace migration. The top applicants, whether domestic or foreign, are given preference by employers. This strategy must take into account specific challenges in each sector.
Fiscal Impact of Skilled Worker Migrants
The first fiscal analysis of skilled worker migrants by MAC is presented in this publication. Results indicate that this group made a significant financial contribution.
The average positive budgetary impact of skilled worker migration in 2022–2023 was £16,300. Adults who were born in the UK, however, made £800. While UK households exhibited a negative impact of £4,400, migrant households added £12,000.
The immigration system’s emphasis on top earners who meet stringent wage thresholds is reflected in these findings. To gain a better understanding of long-term contributions, the MAC intends to improve its fiscal analysis.
Seasonal Worker Visa and Future Challenges
There is also criticism of the Seasonal Worker visa program. This program supports the poultry and horticultural sectors, although its effectiveness is questionable. Improved labour rights, equitable compensation, and flexible visas are among the recommendations.
In the short term, this plan is crucial for sustaining domestic food production. Long-term strategies should encourage automation to lessen dependency on migrant labour.
What Lies Ahead
Major reviews for 2025 are highlighted in the study. These include researching job migration opportunities for engineers and IT professionals, as well as assessing the financial criteria for family visas. Additionally, the MAC will offer yearly evaluations of the immigration dependence of essential sectors.
Past accomplishments are highlighted in the governance report. These consist of evaluations of the Immigration Salary List and the Graduate Route. The administration approved both, highlighting MAC’s increasing sway over policy choices.
The Labour government’s emphasis on evidence-based policies is demonstrated by its reliance on MAC’s experience. These observations will be crucial for upcoming reforms as migration continues to influence the UK workforce.
FAQS
What new modifications have been made to the visas for health and care workers?
Stricter evaluations for the “genuine vacancy test” were implemented in November 2023. Additionally, starting in March 2024, dependents of care workers were prohibited, resulting in a sharp drop in the number of visas granted.
Why is it essential to tie skills policy to migration?
The administration aims to address the country’s skills shortage to reduce its dependency on migration. The MAC emphasizes that, as domestic and migrant workers are not interchangeable, this strategy must take sector-specific demands into account.
