Annual cap on Tier 1 & Tier 2 of the
Points      Points-Based System  

Consultation on limiting immigration under Tiers 1 and 2 of the Points-Based System
The Government has announced that they intend to introduce an annual cap on immigration by skilled workers under Tier 1 and 2 of the Points-Based System. The annual cap is expected to be launched in April 2011.

In order to decide what level the cap should be and how it should work in practice, Home Secretary Theresa May has launched a public consultation and has commissioned the Migration Advisory Committee to prepare a report, which is due in September 2010.

The consultation period will run until 17 September 2010. Details of the consultation for consideration can be found by clicking here. 

It is strongly advised that you submit representations to the Migration Advisory Committee to ensure your business' interests are represented and considered. Representations can be submitted by completing an online consultation form by clicking here or written representations can be submitted to LimitsConsultation@homeoffice.gsi.gov.uk.

If you require advice on how the annual cap could impact on your business or assistance with preparing written representations please email Nick Hobson or telephone him on +44 (0)20 7427 6571. 

Interim cap on Tier 1 and Tier 2 Applications
In an attempt to prevent a surge of applications prior to the introduction of the annual cap, the Government has also announced the introduction of an interim cap on immigration for skilled workers applying to enter the UK under Tier 1 (General) and entering the UK or switching to a new employer whilst in the UK under Tier 2 (General). The interim cap will come into force from 19 July 2010.

The interim cap is expected to be in place until the annual cap is introduced in April 2011.

The interim cap will limit the number of inbound migrants coming to the UK under Tier 1 (General) to just 5,400 and applicants will also have to score an additional 5 points (and a new total of 100 points) in order to make an application. Any prospective employees or current employees based overseas considering submitting an application under Tier 1 (General and overseas) should do so now to avoid the interim cap and the higher points threshold which will come into force on 19 July 2010.

The interim cap will limit the number of migrants entering the UK or switching to a new employer whilst in the UK under Tier 2 (General) to 18,700. Tier 2 (Intra-Company Transfers) are excluded. The limit represents a 5% reduction on the number of Certificates of Sponsorship issued under Tier 2 (General) in 2009. Given the relatively small reduction and the exclusion of Tier 2 (Intra-Company Transfers), the interim cap on Tier 2 (General) should be less of an immediate issue for employers.

If you require advice as to how the interim or annual cap could impact on your business please email Nick Hobson or telephone him on +44 (0)20 7427 6571.

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