Yvette Cooper commissions Migration Advisory Committee to review minimum income requirement and review IT and engineering's over-reliance on international recruitment
The Home Secretary delivered a statement to Parliament today setting out the Government's approach to legal migration. A full copy of the statement is below.
Image credit: WikipediaYvette Cooper said the Government is clear that net migration must come down from the record levels seen under the previous Conservative government.
Policy changes made under the five-point plan announced by the Conservative government in December 2023 to reduce net migration will not be reversed by the Labour government. The Home Secretary said the Labour government supports these changes and will continue to implement them.
This means the salary threshold for Skilled Worker visas will remain at £38,700.
However, Yvette Cooper said she will commission the Migration Advisory Committee (MAC) to review the current £29,000 minimum income requirement (MIR) for family and partner/spouse visas. There will be no further changes to the level of the minimum income requirement until the MAC review is complete.
As part of its five-point plan to reduce net migration, the Conservative government increased the MIR from £18,600 to £29,000 in April 2024 and planned to increase it again to £34,500 later this year and then to £38,700 in 2025.
The Home Secretary said MAC's review will ensure the Government has a solid evidence base for any further change to the MIR and can strike the right balance between respect for family life and the economic wellbeing of the UK.
The Home Secretary also announced that she is commissioning the MAC to review the reliance of key sectors of the UK economy on migrant workers, specifically the IT and engineering sectors. IT and engineering have consistently relied on significant levels of international recruitment and have been included on shortage occupation lists for over a decade, Cooper noted.
A copy of the Home Secretary's full written statement follows below:
Yvette Cooper
Secretary of State for the Home Department
Statement
Migration has always been an important part of the history of our nation. For generations, people have travelled here from all over the world to contribute to our economy, study in our universities, work in our public services and be part of our communities. And British citizens continue to travel across the world to make their homes abroad.
This Government recognises and values the contribution legal migration makes to our country and we believe the immigration system needs to be properly controlled and managed.
Under the previous government, net migration trebled in five years, heavily driven by a big increase in overseas recruitment. This Government is clear that net migration must come down. Whilst we will always benefit from international skills and talent, including to keep us globally competitive, immigration must not be used as an alternative to tackling skills shortages and labour market failures here in the UK. For that reason we are setting out a new approach.
The Office of National Statistics estimate that net migration in the year to December 2023 was 685,000, compared to 184,000 in the year to December 2019 before the pandemic. Non-EU long-term immigration for work-related reasons increased from 277,000 in the year to December 2022 to 423,000 in the year to December 2023, replacing study as the main reason for long-term migration.
The number of work visas issued (including dependants) in the 12 months to 31st March 2024 (605,264) was over three times that of 2019, prior to the pandemic and 24% higher than in the 12 months to 31st March 2023, (486,614).
That reflects a failure over many years to tackle skills shortages and other problems in the UK labour market, meaning too many sectors have remained reliant on international recruitment, instead of being able to source the skills they need here at home.
This is why we are setting out a different approach – one that links migration policy and visa controls to skills and labour market policies – so immigration is not used as an alternative to training or tackling workforce problems here at home. This approach will be important to enabling delivery of the Government's broader agenda.
As part of this, the Migration Advisory Committee will work with Skills England, the Industrial Strategy Council, and the Labour Market Advisory Board as part of a new framework to support a coherent approach to skills, migration and labour market policy. For us to deliver on the Government's Missions, we will need to tackle labour market challenges in all parts of the United Kingdom, and so these bodies will engage and work closely with the Devolved Governments.
The Education Secretary has announced the launch of Skills England which will bring together the fractured skills landscape, create a shared national ambition to boost the nation's skills, and lead the work on identifying sector skills gaps and plans.
The Chancellor has convened the first Growth Mission Board and the Work and Pensions Secretary has set out a plan to bring people back into the labour market supported by a new Labour Market Advisory Board to help drive change and get Britain working again. The King's Speech highlighted the intention to set up the Industrial Strategy Council, which will engage business and focus on key sectors to take advantage of new opportunities that can promote growth right across the UK.
Alongside the development of these plans and the establishment of the new framework, the Home Office will strengthen the Migration Advisory Committee so it can highlight key sectors where labour market failures mean there is over-reliance on international recruitment.
As a first step I am commissioning the MAC to review the reliance of key sectors on international recruitment. In particular I am asking the MAC to look at IT and engineering - occupations which have consistently, over a decade or more, been included on shortage occupation lists and relied on significant levels of international recruitment. The percentage of the workforce in these occupational groups made up by new foreign workers issued visas, are in the top 10 for all occupational groups in the UK.
We will also consider ways to strengthen the Migration Advisory Committee, including through the deployment of additional Home Office staff to its Secretariat ensuring it is able to work more strategically to forecast future trends, alongside continuing to review and provide independent, evidence-based recommendations on key areas of the immigration system.
A number of changes to the system were made earlier this year, including:
• Restricting most overseas students from bringing family members to the UK.
• Restricting the ability of care workers and senior care workers to bring dependants with them and requiring all care providers sponsoring migrants to register with the Care Quality Commission.
• Increasing the general salary threshold for those arriving on Skilled Worker visas by 48% from £26,200 to £38,700.
• Abolishing the 20% going rate discount so that employers can no longer pay migrants less than UK workers in shortage occupations.
This government supports these changes and will continue to implement them.
The Family Immigration Rules, including the Minimum Income Requirement, need to balance a respect for family life whilst also ensuring the economic wellbeing of the UK is maintained. To help ensure we reach the right balance and have a solid evidence base for any change, I will commission the MAC to review the financial requirements, in the Family Immigration Rules. The Minimum Income Requirement is currently set at £29,000 and there will be no further changes until the MAC review is complete.
On the 23 May the previous Government announced a series of measures, building on the recommendations of the Migration Advisory Committee, to reduce the potential for abuse on the student and Graduate visa routes. This Government strongly values the economic and academic contribution that international students make to this country, including those here on the Graduate visa, and that is why it is important to ensure that the system is effective and not open to abuse. Therefore, we will continue with the previously announced measures to ensure that international students themselves, the institutions they are coming to study at, and the immigration system as a whole is protected from those who wish to exploit it – working closely with DfE to ensure the measures are effective.