PBR: Extending schemes for overseas workers
The Home Office has announced new measures to ensure that UK businesses can bring in the skills and people they need to compete in the global economy.
"evidence suggests that migrants' success in the labour market is not at the expense of the domestic population. Research in the UK finds little indication of a negative impact on domestic employment and suggests that immigration may, if anything, have a positive impact on domestic wages" - Pre Budget Report
The new measures which follow an announcement in the Chancellor's Pre-Budget Report include extending the Highly Skilled Migrant Programme and setting up a special unit for small businesses to help them recruit from abroad.
Highly Skilled Migrant Programme
The Highly Skilled Migrant Programme was introduced as a one-year pilot scheme in January 2002. It differs from the work permit system in that it does not require an employer to obtain a permit for the individual. Applicants are assessed on a points system based on their qualifications, earning ability and experience. In the nine months since its introduction, 990 people have successfully applied under the scheme which is geared to allow highly talented individuals to come to the UK.
The Home Office's announcement means that the programme will now be extended indefinitely following the end of its pilot and that the entry criteria will be revised, including updating the earnings category to reflect income differences between countries.
Small Business Unit
The allocation of the work permits has traditionally been the province of the larger organisations. However, the Home Office announcement means that smaller companies will now find it easier to recruit staff from overseas. A new small business unit will be set up within Work Permits UK to ensure that all sizes and types of business have the information they need about work permits to help them recruit easily from abroad.
The Home Office said: "Small and medium sized businesses - which make up 95 per cent of the UK's 3.7 million businesses - make a huge contribution to the UK economy. They often feel, however, that overseas recruitment is more the domain of large businesses. There is no reason why that should be the case, and this new dedicated team will get across to smaller businesses that the UK's work permit system is accessible, efficient and available to them.
Industry-specific migration schemes
The Government intends to continue its work with industry to identify sectors where temporary-migration programmes would be appropriate. This would include the lower end of the skills spectrum. Schemes have already been introduced within the hospitality and food processing industries and the Government and industry will be looking to identify other sectors for similar short-term schemes.
The Government has already introduced several initiatives to increase the ability of UK businesses to bring in overseas workers. This year it is expected that around 175,000 work permits will be processed, up from 45,000 in 1996. Other measures already announced include the Innovators' Scheme to encourage entrepreneurs to come to the UK to set up businesses; possible expansion of the Working Holidaymakers Scheme; and measures to enable graduated foreign students, student nurses, post graduate doctors and dentists to switch into work permit employment without first going home.
Seasonal Agricultural Workers Scheme
The final announcement relating to work permits is to expand SAWS, a farm workers' scheme which dates back to the immediate post-War years.
The announcement to extend the work permits scheme in a number of ways comes a few months after Work Permits UK removed the full raft of IT skills from the skills shortages list, although they announced at the time that this would be kept under review.
The Home Secretary, David Blunkett, said: "The UK is a key player in our global modern economy, where workers are increasingly mobile internationally. In this competitive world-wide environment, it is essential that we can attract the people and skills we need for our businesses to be able to compete successfully, and for our economy to flourish.
"The Government is opening up sensible, managed ways for people to come and work, making it easier for UK businesses to bring in the foreign workers and skills they need, while tackling abuse of the asylum system by illegal immigrants.
"Migrants have an enormous amount to offer our economy and our society. They help with recruitment difficulties and bring new innovations, enterprises and capital to the UK. If we can harness the vitality, skills and energy of migrants we can stimulate productivity, economic growth and job creation.
"Our message to would-be migrants is clear. We are opening up more opportunities for you to work here legally, but if you come here illegally and abuse our asylum system we will take action.
"Of course, managed migration is not an alternative to developing the skills and employment opportunities of our existing population but is an important complement to our ongoing work to achieve that."
The Treasury pre budget report underpinned the Home Office announcement to reinforce that the use of skilled migrants is at the heart of Government policy to drive up UK productivity.
Labour at all skill levels can help to fill vacancies and avoid bottlenecks, increasing efficiency and productivity. Linked to this, evidence suggests that migrants' success in the labour market is not at the expense of the domestic population. Research in the UK finds little indication of a negative impact on domestic employment and suggests that immigration may, if anything, have a positive impact on domestic wages
The report went on to state:
Research by the Home Office has also found that migrants made a net positive fiscal contribution of £2.5 billion in 1999-2000, paying more in taxes than they received in benefits