Lok Sabha Question No. 1253 (UNSTARRED), answered on 2016-05-02
Subject: Impact of New UK Immigration Law on Indians
Ministry: COMMERCE AND INDUSTRY
Asked by: P.R. SUNDARAM, A. ARUNMOZHITHEVAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1253 TO BE ANSWERED ON 02 nd  MAY, 2016

## IMPACT OF NEW UK IMMIGRATION LAW ON INDIANS

## 1253. SHRI P.R. SUNDARAM: SHRI A. ARUNMOZHITHEVAN:

Will  the  Minister  of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether Indians in the United Kingdom (UK) are likely to be affected adversely by the new immigration law promulgated in that country and if so, the salient features of the new law along with its impact on Indian immigrants;
- (b) whether these changes are likely to hit professionals living and working in UK on a Tier -2 visa and if so, the details in this regard;
- (c) whether the Government has taken up this issue with the UK Government; and
- (d) if so, the details thereof and the response of the UK Government thereto?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a) & (b):In 2012, the UK Government had made certain changes to the Immigration Rules which would affect the settlement of non-European Economic Area (EEA) workers with Tier 2 visas based on the recommendations of the UK Migration Advisory Committee (MAC).MAC is a non-statutory and  non-departmental  public  body  comprising  of  economists  and  migration  experts  which  was commissioned  in  2015  by  the  UK  Government  to  advise  on  significantly  reducing  the  level  of economic migration from outside the EU. One of those changes, that is made effective from 6 April 2016, is that all skilled non-EEA workers with Tier 2 visas, except certain exempted categories, will only be eligible to stay in the UK permanently if they are earning at least £35,000 per annum.  The changes will affect Tier 2 migrants who obtained their visa under the Immigration Rules in force since April 2011 and want to apply for settlement in the UK after 5 years. In effect, therefore, the settlement  pay  threshold  of  £35,000/-  will  affect  persons  applying  for  permanent  settlement  after April  2016.  The  settlement  pay  threshold  will  not  apply  to  Tier  2  (General)  workers  whose professionals  come  under  the  Shortage  Occupation  List;  or  to  those  working  as  scientists  or researchers  doing  'PhD'  level  jobs.  Following  consultations  with  various  stakeholders,  the  UK Government temporarily added nurses to the shortage occupation list which means that the £35,000 salary threshold for applying for settlement, announced in 2012, is not applicable for nurses.

In  March  2016,  the  UK  Government  has  announced  its  decision  to  accept  majority  of  Migration Advisory Committee's new recommendations on changes to Tier 2 visa route for those undertaking skilled work in UK. The MAC had published its report on 19 January, 2016 with a number of key recommendations to the Government on the Tier 2 visa route. The proposed changes affect the ease of entry and the competitiveness of Indian IT and ITES companies in the UK by making the UK visa application process more expensive and difficult.The summary of changes proposed for Tier 2 visa along with the timelines are attached as Annexure A .

(c) & (d): Government of India has been taking up this issue consistently with the Government of UK  including  at  the  highest  levels,  urging  the  UK  to  not  accept  these  recommendations  in  the interest of the bilateral trade in Services between India and UK and its adverse impact not only on Indian IT companies but also on the UK's own economy and competitiveness. This issue has been raised  bilaterally  in  March,  2016  with  UK  Minister  for  Immigration  during    the  visit  of  Indian delegation to UK.

## ********

| Timing      | Policy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Autumn 2016 |  Increase the Tier 2 (General) threshold to £25,000 for experienced workers, maintaining the minimum threshold of £20,800 for new entrants.  Introduce exemptions from the increased Tier 2 (General) experienced threshold for nurses, medical radiographers, paramedics and teachers in mathematics, physics, chemistry, computer science, and mandarin. The exemption will end in July 2019.  Increase the salary threshold to £30,000 for the Tier 2 (ICT) Short Term category.  Reduce the salary requirement for the Tier 2 (Graduate Trainee) category from £24,800 to £23,000 and increase the number of places available to companies from 5 to 20 per year.  Close the tier 2 (ICT) Skills Transfer category to new applications.  Weight overseas graduates more heavily in the Tier 2 (General) monthly allocation rounds.  Enable graduates to witch roles once they secure a permanent job.  Remove the exemption for the Tier 2 (ICT) category paying the Immigration Health Surcharge. |
| April 2017  |  Increase the Tier 2 (General) threshold to £30,000 for experienced workers.  Close the Tier 2 (ICT) Short Term category to new applications.  Introduce the Immigration Skills Charge.  Reduce the high-earners' salary for Long-Term ICTs from £155,300 to £120,000.  Remove the one year's experience requirement in the Long-Term category where the applicant is earning over £73,900.  Introduce a waiver for the Resident Labour Market Test and prioritise Tier 2 (General) places where the visa grants(s) are in support of the relocation of a high- value business to the UK or, potentially, an inward investment project.  Implement any recommendations as a result of the review of allowances under the Tier 2 (ICT) categories.                                                                                                                                                                                                                                                       |