Economic Migration Policy

Presented by: Gary CookDate: 14th April 2015

UK net migration2004 - 2014

2

UK net migrationNon-EU, EU and British Citizens

3

UK net migrationMigration by purpose

4

• Work (economic migration) is the most common reason for long-term migration to the UK

• Study was the most common reason for long-term migration from 2009 – 2012

• Family migration includes those who come to accompany / join relatives

UK net migrationEconomic migration

5

• Tier 1 (high value migrants): entrepreneurs, investors, those recognised as having exceptional talent or promise.

• Tier 2 (skilled workers): Roles skilled to graduate level and paying an appropriate level of salary.

Tier 1 – high value migrantsVisas granted in 2014

6

Tier 1(8,000)Tier 1(8,000)

Investor (1,800)

Investor (1,800)

Entrepreneur (5,600)

Entrepreneur (5,600)

Graduate Entrepreneur

(600)

Graduate Entrepreneur

(600)

Exceptional Talent (100)Exceptional Talent (100)

Note: The above figures are for both in-country and out-of-country visa grants and include main applicants only

Tier 1 (Investor) RoutePurpose and recent changes

7

• The Tier 1 (Investor) route is for high net worth individuals making a substantial financial investment into the UK

• The £2m investment must be in UK government bonds or share/loan capital in active and trading UK-registered companies

• In November 2014, we made changes to the route to ensure that the UK remains an attractive destination for global talent and that the investors who choose to come here contribute to our economy:

• Doubling the previous £1 million investment threshold to £2 million;

• Removing the provision for investment funds to be sourced by a loan;

• Requiring that 100% of the funds be invested in permitted investments (rather than 75% as previously);

• New powers to refuse applicants where there are reasonable grounds for concern, including: (1)a general power to refuse entry to individuals not conducive to the public good;(2)refuse on the basis that the applicant is not in control of the funds;(3)refuse on the basis that the funds were obtained unlawfully.

Tier 1 (Investor) RouteApril 2015 Rules changes

8

• We have introduced a requirement to open a UK bank account before making a visa application to ensure due diligence checks are undertaken ahead of an individual being permitted entry to the UK

• We have changed the requirements on maintaining the level of investments - the new requirement is that original capital is maintained within the portfolio.

• We have raised the minimum age for new applicants from 16 to 18

• The restriction on investing in property development and management has been brought in line with that applied to Tier 1 (Entrepreneur)

Tier 1 (Entrepreneur) RoutePurpose and recent changes

9

• The Tier 1 (Entrepreneur) route is for migrants who wish to establish, join or take over one or more businesses in the UK.

• Applicants must show that they are a genuine entrepreneur and that they have £50,000 funding to invest in their business from a specified source, or £200,000 from any source. The specified sources are:

• Seed funding competitions endorsed by UKTI• UK or devolved government departments• Registered venture capital firms regulated by the FCA

Tier 1 (Entrepreneur) RouteApril 2015 Rules changes

10

• We have extended the genuineness test to applications for extensions and settlement.

• We have made it a requirement that a business plan is submitted in support of initial applications.

• We have introduced a requirement that applicants provide evidence of third party sources of funds where the applicant has held those funds for less than 90 days.

• We have clarified that sources of government funding may include intermediary bodies.

• To prevent abuse following the closure of the Tier 1 (General) route, we are requiring that those seeking to switch from Tier 1 (General) to Tier 1 (Entrepreneur) from 6 April onwards must have already established their business before that date, unless they have funds from a government department or seed funding competition.

Tier 1 (Exceptional Talent) Route Purpose and April 2015 changes

11

• The Tier 1 (Exceptional Talent) route is for exceptionally talented individuals in the particular fields, who wish to work in the UK. These individuals are those who are already internationally recognised at the highest level as world leaders in their particular field, or who have already demonstrated exceptional promise and are likely to become world leaders in their particular area.

• There are 1,000 places available each year. Applicants must be endorsed by a Designated Competent Body (DCBs) as follows:

• Arts Council England – for the arts and culture • British Academy – for humanities and social sciences• Royal Academy of Engineering – for engineering• Royal Society – for natural sciences and medical science research• Tech City UK – for applicants in digital technology

 • Successful applicants are granted leave for up to five years and are free to work without the need

for a sponsor.

• In April, we updated the rules concerning grants of leave to provide applicants with the option of how much leave they wish to apply for, in order to cater for the introduction of the health surcharge

Tier 2 – skilled workersVisas granted in 2014

12

Tier 2(88,000)Tier 2

(88,000)

Tier 2 General(42,000)

Tier 2 General(42,000)

Intra-company transfers(45,000)

Intra-company transfers(45,000)

Other Tier 2 routes(1,000)

Other Tier 2 routes(1,000)

Short-term(23,000)

Short-term(23,000)

Long-term(22,000)

Long-term(22,000)

Sportsperson(200)

Sportsperson(200)

Minister of Religion

(800)

Minister of Religion

(800)

Notes: The above figures are for both in-country and out-of-country visa grants and include main applicants only.

Tier 2 – skilled workersPurpose and April 2015 changes

• Tier 2 of the Points-Based System is the main immigration route for non-EEA nationals to apply to work in the UK. The Tier 2 (General) route is designed to fill skilled vacancies for which no suitable resident workers are available. Applicants must have an offer of a graduate level job, paying an appropriate salary, from an employer which has been licensed by the Home Office to sponsor migrant workers.

• Annual updates to salary thresholds and appropriate rates. Updates to salary thresholds are in line with changes to average weekly earnings for resident workers (a 1.2% increase).

13

Tier 2 – skilled workers April 2015 changes continued

• Shortage Occupation List – updated following a partial review by the Migration Advisory Committee.

• Tier 2 limit - we have made a small change to operation of limit to make more places (2,550) available at start of limit year. The size of the limit (20,700) remains unchanged for 2015/16.

• Tier 2 cooling-off – the cooling off period will be waived for migrants whose previous leave in the last 12 months as a Tier 2 migrant did not exceed 3 months. This is designed to enable short business visits and internships.

14

Economic migration routesCross-cutting changes

• Health Surcharge

• Biometric Resident Permits – rolling out to the US on 31 May 2015

• Redesign and simplification of the visitor rules - no fundamental change of policy

• Changes to English language test providers

• ATAS requirement extended to all temporary migrants who engage in study

• Extension of administrative review to all PBS tiers and other immigration categories

15

Thank you for listening

Any questions or comments?

16