Skilled worker visas: is this the end for the shortage occupation list?

The Migration Advisory Committee (MAC) has published its extensive review of the shortage occupation list (SoL) with some far-reaching proposals. Notably, the MAC is not convinced that the SoL provides a sensible solution to UK labour shortages and that the government should consider its abolition.

It remains a key focus of the government that immigration should only ever be a temporary solution to a labour shortage and that no occupation should remain on the SoL indefinitely. Part of the MAC’s consideration as an advisory body to the government is to consider what alternatives there are or may be to migrant labour. The MAC is also tasked to consider what measures sectors could take to reduce reliance on migration in the future. For example, employers are encouraged to proactively seize opportunities that may already be available within the UK labour market, including career progression, training opportunities for domestic workers, utilising government services such as local job centres, and liaising with government-appointed sector delivery leads. These sector delivery leads work closely with construction, manufacturing, digital and tech, haulage and logistics and health and social care, all sectors experiencing labour shortages.

What is the shortage occupation list (SoL)?

The SoL comprises occupations in shortage across the UK, i.e., roles employers find problematic to fill with adequately skilled workers from within the domestic talent pool. In order to be considered for inclusion on the SoL, in addition to the role being in shortage, migration must also be considered to be a sensible response to that shortage. This varies according to the sector (for example, there is a separate SoL for health and education) and for each of the devolved nations: England, Scotland, Ireland and Wales. Some shortage occupations are considered in shortage across all nations.

The SoL was initially designed to make it easier for employers to fill vacancies. Where an occupation is listed on the SoL, employers are able to deviate from strict immigration rules on salary for skilled workers, as shortage occupation roles currently attract a lower salary threshold of either £20,960 or 80% of the ‘going rate’ for that occupation: whichever is higher. Additionally, reduced visa fees are payable where an occupation is a shortage occupation role. There is, however, no faster processing time for an application for a shortage occupation role.

Historically, there were further benefits of an occupation being listed on the SoL. This included allowing employers to avoid the resident labour market test, which required a role to be advertised in a certain way and prescribed places for a period of at least 28 days before this could be offered to a migrant worker. Additionally, an occupation on the SoL was not included in the historic ‘cap’ that applied to the number of skilled worker applications. Both the resident labour market test and the ‘cap’ on skilled worker applications were removed in January 2021, and therefore, the benefits of inclusion on the SoL were much reduced and limited to the reduced salary and slightly reduced visa fees.

Outcome of the review

Within the review, the MAC note the substantially reduced benefit of the SoL with respect to skilled workers but also flags concerns about the fact employers can currently pay below the ‘going rate’ salary for an occupation. The MAC considers that the ‘going rate’ helps protect resident workers from undercutting salaries, the potential exploitation of migrant workers and the net fiscal cost to the UK in the presence of low-wage workers (especially when accompanied by family members). Given this context, the main recommendations of the MAC are:

• To abolish the SoL entirely. The MAC suggests exploring individual occupations/ sectors experiencing acute market issues with other appropriate bodies as an alternative. In making this recommendation, the MAC stressed that this did not mean that they do not recognise that some of these occupations are in shortage but that their inclusion on the SoL would not help these occupations to use the immigration system any more effectively to address the shortages.
• If the SoL remains: to implement a hugely streamlined SoL including only eight occupations UK-wide, with two for Scotland only. No recommendations are made independently for Wales or Northern Ireland. Those recommended for inclusion on the UK-wide SoL are:    

1. 1. Laboratory technicians
   2. Pharmaceutical technicians
   3. Bricklayers and masons
   4. Roofers, roof tilers and slaters
   5. Construction and building trades (retrofitters)
   6. Animal care services occupations (racing grooms, stallion handlers and work riders)
   7. Care workers and home carers
   8. Senior care workers.

• Remove the SoL salary discount where the ‘going rate’ is above the general salary threshold for the skilled worker route (currently £26,200/ £10.75 per hour, based on a 37.5 hour week) or where the occupation is on a national pay scale.
• Allow asylum seekers who have the right to work be able to work in any occupation, rather than, as currently, only being able to undertake roles on the SoL.
• If the SoL remains in place, its name is changed to ‘Immigration Salary Discount Function’ to better describe the SoLand its function within the immigration system.
• Not to consider any ‘low skilled’ occupations at RQF levels 1 – 2 (currently, only those roles at levels RQF and above are considered suitably skilled and therefore capable of sponsorship under the skilled worker route).

In this review, an exception was made by the MAC for care and senior care workers. The MAC recommended these occupations remain on the UK-wide SoL. This is because the MAC has had no response to its 2022 Social Care report to the government, which recommended that these occupations be included on the SoL. Care workers were made eligible for the Health and Care Worker Visa on a temporary basis in February 2022. While these roles are considered to be below RQF level 3, they would not be capable of sponsorship as skilled workers without the SoL. In the year so far to June 2023, care workers accounted for 41% of all visas granted on the skilled worker route: statistics that the MAC have vowed to keep under review.

What happens next?

The government will consider the review and report back on the findings and consideration. We’re unlikely to hear anything on the review imminently. It is likely that the government will respond as part of the Spring 2024 updates to the immigration rules and guidance and until that time, the current position will remain as it is now.

If you have any queries about business immigration, sponsoring skilled workers or preventing illegal working, please call Amy Sergison on 0191 211 7995 or email [email protected]