Home Secretary outlines new immigration policy approach

In a speech to an audience of key immigration partners at London’s Policy Exchange, the Home Secretary, Theresa May, has set the agenda for the Coalition Government’s immigration policy.

The Home Secretary stated that the existing Points Based System has proved ineffective. She argued that attempts by her predecessors in the Home Office to limit certain immigration routes were analogous to 'squeezing a balloon'. Clamping down on one route only led to an escalation of the use of an alternative route, she said. The restrictions placed on the migration of lower skilled workers and the subsequent escalation in the use of student visas was cited as evidence of this.

As an alternative, Theresa May stated that the Coalition Government’s policy would be 'a comprehensive package focusing on all aspects of the immigration system'. Although her speech did not identify any specific policies, the Home Secretary expressed a commitment to impose 'steady downward pressure on each of the main routes into the UK', in order to meet the target of halving net migration by 2015.

In the last week the Coalition Government has identified the following areas of change to the existing immigration policy:

• Opening up the existing Tier 1 Investor and Entrepreneur routes; 
• Cutting down on the number of non-university student migrants;
• Severing the link between the temporary right to work in the UK and the permanent right of settlement, and not implementing the Earned Citizenship programme; and
  
• Keeping Tier 2 outside the quota system but imposing more stringent requirements upon it.
  

Caron Pope, a Partner at law firm Cameron McKenna LLP, commented on what the proposed changes mean for employers. She said:

“The proposed changes suggest a two ICT-fold impact on sponsors. Primarily, the Prime Minister’s promise not to impose a cap on Tier 2 should reassure sponsors that their ability to bring in skilled migrant workers who have been employed in group company overseas offices for 12 months or over, to fill jobs in the UK will not be severely curtailed. However, this should be seen in the light of the Home Secretary’s comments that employers should seek to fill vacant jobs with people who are out of work and in the UK. Although no official policy has been outlined as yet, this would appear to suggest that the Government will impose greater obligations on sponsors to hire UK based workers before they look overseas.

“The second impact upon sponsors is that by severing the link between rights to work and rights of settlement, employers will have less certainty over how long they will be able to fill vacant positions with overseas workers. At the very least, such a measure would increase the sponsor’s costs of retaining migrant employees, as it would necessitate repeated visa extensions. Whilst Theresa May confirmed that the Earned Citizenship programmed proposed by the last Government will not be implemented, it is likely that some changes will be made to the concept of settlement. However until further notice, the current rules will remain unchanged."