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| Thu, 4/12/2008 | ||
The UK Home Office has announced that it will abolish the retired person of independent means route on 27 November 2008.
The decision is reportedly part of the shake-up of the current immigration rules. According to the Home Office the decision was taken as there was a limited take-up of this route, with only about 20 applications a year. It was further felt that these migrants may place future demands on the public services.
Applications made before 27 November 2008, will be considered under existing rules. Migrants who has already entered the UK under this route to seek indefinite leave to remain or to apply for an extension to take them up to the point at which they can apply for settlement, will be able to do so under transitional arrangements.
Please contact our offices for further information.
The BBC reported a spokesperson from the Royal Institution of Chartered Surveyors (Rics) as saying that the decision of the Bank of England to cut interest rates to 3% would help boost property sales in the UK. However, the general lack of mortgage finance remains a problem in the housing market.
According to the Rics the worst of the housing market slump may now be over, and 20% of its members expect sales to rise by the end of 2008. According to Rics the growing optimism that sales would start to increase again was being driven by more sellers agreeing to drop their asking price, as more sellers understand that greater realism is needed.
The UK Home Office has published its shortage occupation list, which will be used as part of the skilled worker tier (Tier 2) of the new points based system, which will be launched on 27 November 2008. The published list also includes 100,000 social workers, a job which the Migration Advisory Committee originally ruled was not in short supply.
The number of jobs on the list has been reduced from one million to just under 800,000 to ensure that only those foreign workers needed in the UK labour market can enter the UK via the shortage occupation route.
The implication of an occupation being on the shortage occupation list, is that the employer is not required to advertise the position in order to ensure that there is no suitably qualified resident or EU citizen candidate available to fill the vacancy.
Please contact our offices for more information.
The Bank of England's official interest rate was cut from 4,5% to 3%. The British Prime Minister, Gordon Brown, urged lenders in his reaction to pass on this rate cut to lenders.
The BBC reported that the main mortgage lenders have started to respond to the government's demand that they should cut their mortgage lending rates. The Nationwide, HBOS, the RBS/Natwest group and Northern Rock have all announced that they will cut their variable lending rates by the full 1,5% from 1 December.
Other lenders such as Loyds TSB and Abbey have also announced similar steps.
The UK Home Office has released its policy guidance on the new Tier 5 Youth Mobility Scheme, that will be replacing the Working Holiday Visa on 27 November 2008.
Unfortunately, citizens from countries like South Africa and Namibia will not be able to participate in the new scheme. Only citizens from Australia, Canada, Japan and New Zealand and British Overseas Territories will be able to participate in the new scheme.
Please contact our offices for more information on the new scheme.
The UK Home Office has announced that the age at which someone can apply for a marriage visa will be raised from 18 to 21 years. This step was reportedly taken in order to stop forced marriages and deter people from abusing this migration route.
The change will take effect on 27 November 2008 and from this date, both parties in a marriage will have to be 21 years of age, before a marriage visa can be issued.
This will in effect also mean that someone will from this date, no longer be able to apply for a spouse or dependancy visa, if there is a marriage involved and one of the parties are younger than 18 years old.
The UK Home Office has announced that from 27 November 2008, there will be new rules in place for persons coming to the UK to conduct business or take part in sporting or creative events - such a person will need to come as a business, sports or entertainer visitor.
Persons seeking entry as a child visitor, student visitor, parent of a child at school, marriage visitor, prospective student, visitor in transit or a visitor for private medical treatment will still need to apply in that category - a group collectively known as special visitors.
The Home Office also announced that it will review the arrangements for general short term visits to the UK and will make some announcements in this regard, early in 2009.
The UK Government has announced that Tier 4 for Students will be rolled out from March 2009.
The new system aims to clamp down on bogus students and from March 2009 the following measures will come into effect;
All colleges and universities who want to recruit foreign students will need a sponsors licence;
Every student will need a licensed sponsor; and
Stricter rules will be put in place to protect the UK labour market.
From Autumn 2009 the system will be further tightened with the introduction of a dedicated technology system that will make it easier for education institutions to inform the UK Border Agency if students fail to enrol or miss more than ten sessions.
Please contact our offices for more information.
The UK Home Office unexpectedly expedited the implementation of the new Tier 2. The announcement was made on Tuesday afternoon, 28 October, that the existing Work Permit Scheme will expire on 26 November 2008 and be replaced by Tier 2 on 27 November 2008.
We will thus not be able to lodge any applications for employers to employ non-EU nationals later than 25 November 2008 under the current scheme, as it has to reach Home Office at the very latest on Wednesday, 26 November 2008. We will need all applicable documents, in relation to the specific work permit application, no later than 17 November 2008.
Essentially that means that the last day for placing adverts, in order to ensure the application gets considered under the current work permit rules, was 28 October 2008. Where advertising is involved, we cannot lodge an application before the advert is at least 28 days old. This 28 day period is reckoned from the first day that the advert appears in the media.
This firm can take no responsibility whatsoever if we do not receive written instructions from clients timeously to proceed on your behalf. If there is any doubt whatsoever about this situation, you must please contact us urgently, as we are concerned that some employers and employees may take too long to provide us with instructions thus making it impossible for us to lodge applications under the existing Work Permit Scheme.
Please note that if you were too late to lodge your application under the current Work Permit Scheme, we will be able to assist you with Tier 2 applications from 27 November 2008. We also have a dedicated department, dealing with Sponsorship Licences that has been fully operational since September 2008. Please contact us for more information in this regard.
The UK Home Office unexpectedly expedited the implementation of the new Tier 5. The announcement was made on Tuesday afternoon, 28 October, that the existing Working Holiday Visa will expire on 26 November 2008 and be replaced by Tier 5 on 27 November 2008.
The Youth Mobility Scheme, Tier 5, will operate on the principle of balances. Nationals from participating countries will be allowed to come and experience the UK for two years, provided young UK nationals may enjoy similar opportunities in participating countries. Each year, the UK Home Office will publish a list of countries that qualify for the Scheme, together with the number of places on the Scheme that are allocated to each country.
At present, it seems highly unlikely that countries such as South Africa will be part of this scheme from the onset, and South Africans wanting to apply for the working holiday visa, before the introduction of the new Youth Mobility Scheme, should contact our offices without further delay.
Persons in possession of a Working Holiday Visa, at the time of the introduction of the Youth Mobility Scheme, will not be affected by the new scheme. They will be allowed to complete the time on their visas in the UK under the current Working Holiday Visa rules.
If you are interested in applying for your visa, please contact us without further delay.
According to the magazine, Money Marketing, there could be as many as 380,000 potential homeowners waiting for the mortgage market to improve.
They reported Legal & General as saying that pent-up demand for mortgages is on the rise and that the average house price has doubled since 2000. According to their director of mortgages, a significant number of people have postponed moves to buy a property, initially due to affordability, but now many of them are waiting in anticipation of further falls in prices and hoping that interest rates and lending criteria will become more favourable.
According to Legal & General they expects the pent-up demand to release quickly when more mortgage lenders re-enter the market with new products and that it is just a matter of waiting for the right products to come back.
The Home Office guarantee of 30 November by which they would approve a licence has expired. Now all employers have to join the queue to get their Sponsor’s Licence Application approved.
A very low number of employers in the UK made the deadline of having their application in by 01st October which means the backlog at the Home Office in the months ahead will be high. As a firm we are noticing a sudden awakening within the employer marketplace who have realised that the pointed-based system is for real and work permits will no longer be the route – there are only a handful of days left to process work permits before this window closes and the new system becomes operational.
Breytenbachs has partnered with ComplySoft to provide our organisation and you with support services at a technology level. This will help us to process your Sponsor’s Licence Application quickly, cost effectively and painlessly for you.
The bonus for your organisation is management information about your staff profile you did not have before at the same price as only the Application. This process used for the Application is step one of becoming compliant under the new regulations. The ongoing compliance management is a managed service solution we can also provide once your Application has been approved.
We recommend you contact us as soon as possible to proceed with your licence Application to avoid the risk of some of your existing migrant workers having to return to their originating country due to your organisation’s possible non compliance.
The BBC has reported that the Halifax registered a 1,3% fall in UK house prices in September 2008.
According to Halifax, the annual fall in house prices now stood at 12,4% with the cost of an average home in the vicinity of £172,000. However, Halifax joined Nationwide in its claim that the rate of decline in house prices was starting to stabilise.
The chief economist at the Halifax said that the ongoing pressure on householders' income, combined with the reduction in the availability in mortgage finance meant that market conditions will remain challenging. However, he welcomed the cut in interest rates saying that the lower rates will provide a valuable support to the housing market.
The BBC has reported that six central banks in the UK, including the Bank of England have cut their interest rates by half a percentage point. The interest rate cut now puts the UK interest rate at 4,5%, down from 5%.
The announcement by the Bank of England to cut its interest rates after a special meeting, came after the UK government unveiled plans for a £50 billion rescue plan for banks. Most analysts welcome the bold move and said it would hopefully provide a boost of confidence in the UK economy.
The BBC has reported that the number of mortgages available to buyers with a 5% deposit is shrinking fast. This is due to the fact that lending is cut because of the credit crunch and falling house prices.
Where a year ago, there were about 860 such deals available, it is now reported that there are only 60 such deals currently available. Mortgages for 100% or more of the value of a property has completely disappeared at the beginning of 2008.
Borrowers of a 95% home loan also find that they are asked to pay interest rates of 7% or more, which is much higher than the cost of mainstream mortgages which are priced at 6% or less.
The UK Home Office has unveiled its identity card for foreign nationals.
The compulsory identity cards for foreign nationals will start the National Identity Scheme, and the first applicants will have to apply for the cards from 25 November 2008. The UK Border Agency will issue the first cards to the two categories of foreign nationals that are most at risk of abusing immigration rules - students and people seeking leave to remain on the basis of marriage.
The new ID card will show the holder's photograph, name, date of birth, nationality and immigration status. An electronic chip will also hold their biometric details such as fingerprints, and a digital facial image.
The BBC has reported that immigration levels have pushed population levels in England to a higher level than any other major country in Europe.
According to figures from the Office for National Statistics there is an average of 395 people in every square kilometre in England, which is an increase of five persons per square kilometre over the past two years. In the UK, there is an average of 253 people in every square kilometre, but Scotland, Wales and Northern Ireland are relatively sparsely populated.
The BBC reported that Sir Andrew Green, of Migration Watch UK said that the figures are a milestone and a wake up call. Other critics called for a more balanced approach to immigration, where the numbers allowed to settle in the UK, equalled those leaving.
A strict new list of proposed shortage job occupations were presented to the UK Home Office by independent advisors of the Migration Advisory Committee (MAC).
The recommended list would bring in a more flexible, larger set of categories but would see the number of individual positions open to migrants reduced by 30 percent. It reduces the number of jobs open to migrants, available via the shortage occupation route, from one million to 700,000.
The UK Home Office will now test the recommendations received from MAC, before publishing the final list in October 2008, ahead of the Skilled Worker Tier 2 of the points based system, coming into force in November 2008.
Please contact our offices for more information in this regard.
The Guardian newspaper reported that a study headed by two former Labour and Tory ministers respectively, called on ministers to balance the number of immigrants entering the country against those leaving.
The controversial report want skilled migrants from outside the European Union to be sent home when their four-year visas expire to limit the United Kingdom's population growth and ease pressure on public services. Under the model developed in the report, the only chance non-EU immigrants would have of staying beyond their visa period would be if immigrants proved they had exceptional intellectual, scientific or artistic merit and did not breach an annual quota, be be set at 20,000, which would also include dependants.
A spokesperson from Joint Council for the Welfare of Immigrants said that the proposals completely ignored the positive contribution migrants make to life in the UK.
The Immigration Minister Liam Byrne reacted by saying that caps and quotas were not the answer, but that the new points based immigration system will reduce the overall numbers of economic migrants coming to Britain. He further said that the points system would mean the government is not depriving British businesses from benefiting from vital skills it needs.
The Bank of England has decided to hold interest rates at 5%. This is the fifth month running that interest rates were kept at this rate.
Analysts seem to agree that that there is a growing expectation that interest rates could soon be cut in response to the slowdown in the economy.
The Guardian newspaper reported Peter Dixon, an analysts at Commerzbank in London as saying that they assess the Monetary Policy Committee's (MPC) inactivity as part of a waiting game to see how the balance between growth and inflation pans out. He further said that while inflation is currently at the top of the MPC's agenda, it will not be long before the weakness of growth assumes a priority.
The UK Government has announced that homebuyers will not have to pay stamp duty on properties costing £175,000 or less for the next twelve months. This measure is raising the current threshold from £125,000 to £175,000 and is part of a Government package to boost the UK property market.
According to reports by the BBC this will save someone buying a home of £175,000 £1,750 under the new scheme and is likely to cost the Treasury £600 million in revenue from stamp duty.
The Prime Minister, Gordon Brown, said that the package of measure introduced by the UK Government showed that they were taking action to help people through difficult times.
The UK Home Office has announced that it will begin to issue identity cards to foreign nationals applying for further leave to remain in certain categories from November 2008. The first cards that will be issued will be for migrants applying as students and the husband, wife, civil partner of someone holding permanent residence in the United Kingdom.
The BBC has reported that the Nationwide Building Society has reported a double digit fall in the annual prices for homes. House prices were 10,5% lower than in August 2007 and fell with 1,9% during the past month. This brings the price of an average house to £164,654, or £19,000 cheaper than a year ago.
According to the chief economist of Nationwide there may be some glimmers of interest returning to the market as some buyers were taking the opportunity to secure large discounts. The cost of fixed-rate mortgages has been falling in recent weeks and a series of lenders were cutting their interest rates.
The BBC reported the Department of Communities and Local Government as saying that when looking at trends, it is important to remember that the UK house prices are significantly higher than five years ago. They also said that the current issue affecting the market is largely about the supply of credit, which is a very different situation to the early 1990's which was about high interest rates and unemployment. According to the department the fundamentals underpinning the market remain sound with long-term demand for housing, low interest rates, and low unemployment.
According to statistics from he UK Home Office, the number of Eastern Europeans coming to work in the UK has fallen to its lowest level since accession.
Figures show that between April and June 2008, there were 40,000 applications for the Workers Registration Scheme from nationals of the eight countries that joined the EU in 2004. This is the lowest figure since accession, a drop of 9,000 from the first three months in 2008, and a drop of 14,000 from the same period in 2007.
The number of Bulgarians and Romanians applying to work in the UK has also dropped to its lowest level since accession in January 2007, according to Home Office Statistics. Only 7,005 applications for worker cards and registration certificates were received between April and June of 2008, compared to 10,860 for the same period last year.
The BBC reported that figures from the Office of National Statistics are showing that the number of migrants coming to the UK for a year or more, has risen to a record level.
Between mid-2006 and mid-2007, 605,000 long term migrants arrived in the UK. This figure is up from 591,000 in the previous year.
The emigration figure - persons leaving the UK - has also risen to a record level. In the year 2006/2007 about 406,000 persons left the UK.
That means that on average about 1,650 persons arrive in the UK every day, and 1,100 are leaving.
The Guardian newspaper has reported that vice-chancellors are calling for further discussions over proposed visa requirements that could deter overseas students from studying in the UK, which could have dire consequences for universities' finances.
The new visa requirements which are due to come into effect in September 2009, will require international students to show that they have maintenance funds of at least £9,600 a year or £800 a month and an income of £535 per month for each dependant they have in order to study in the UK. These maintenance funds are required on top of their tuition fees, which will have to be paid upfront and can be up to £15,000 for undergraduate courses in science subjects.
According to vice-chancellors the government had not discussed the level of funds required with the sector, before making the announcement. They also warned that international students could be deterred from or denied the opportunity to study in the UK if the maintenance levels are not adjusted.
Universities are also reportedly concerned about the timeframes introduced for these new rules, particularly in the light of the fact that it is being based on a new software system being designed by the government
A spokesperson at the University of Manchester said that the moves by the UK Government could have an impact on universities' income, as well as to create a perception of the UK as not welcoming international students.
The Bank of England has decided to keep interest rates steady at 5%.
Analysts agree that the Bank of England is currently facing tricky dilemma; if it reduces interest rates, it risks losing control of inflation. Conversely, if it increases rates it risks losing control of growth and could trigger a recession in the UK economy. However, the Monetary Policy Committee's primary goal is to keep inflation at 2%, whilst it is currently reported to stand at 3,8%.
According to analysts, the recent fall in the price of oil, could however allow for interest rates to be cut as early as November.
The BBC has reported that the UK Government is looking at the possibility to defer the payment of stamp duty in order to boost the housing market.
The Chancellor Alistair Darling said that he was considering a number of measures to help people during the economic downturn, but had not concluded exactly what they need to do.
It is understood that one of the options the UK Government is considering is to allow people to defer payment of stamp duty. This will allow house buyers extra time to pay the tax while the government would not lose out on the revenue altogether.
The BBC has reported that some estate agents in England and Wales are marketing properties without ordering a Home Information Pack.
According to law, home sellers have to commission a Home Information Pack when they put their house on the market and after 28 days a Home Information Pack (Hip) must be purchased. On average a Hip cost between £300 and £400. The idea behind the introduction of the Hips were to give buyers more upfront information about the property, in order to reduce the chances of a sale falling through. Information contained in a Hip include; evidence of title, deeds and searches, recent planning permission, energy performance certificates etc.
According to the Law Society, in some cases Hips are not available until weeks after the property goes on the market and they believe that sellers are reluctant to pay for packs in the light of the slowing property market.
The Nationwide Building Society has reported an annual decline of 8,1% in house prices, the biggest annual fall since Nationwide began its housing survey in 1991. The latest monthly fall in house prices were 1,7% in July. According to Nationwide, house prices have now fallen for nine months in a row and were at its lowest level since August 2006.
The average house now costs about £169,000, which is £15,000 less than for the same month a year ago. However, property prices are still £11,000 higher than three years ago.
The BBC reported Nationwide's chief economist as saying that the weakening economy and poor market sentiment do not suggest that the market will recover quickly. The good news for borrowers are however, that if oil prices continue to fall, it could lead to rapid cuts in interest rates.
Meanwhile, the BBC reported the National Housing Federation as saying that it expected house prices to rise by 25% by 2013. This is due to the fact that the number of new homes being built was not keeping up with rising demand as a result of people living longer, getting married later and getting divorced more.
The UK Government has released a Statement of Intent on Tier 4 of the new points based system – the new immigration route for persons wishing to study in the UK. It is anticipated that this Tier 4 will replace the current student visa route in the first part of 2009. Note, however that at present it is only a Statement of Intent and the UK Government could change any part of it.
The new system is underpinned by the principle of sponsorship. This means that every student will need an education provider willing to sponsor him/her. In order for the education provider to act as sponsor, it will have to have a licence from the UK Border Agency. The education provider will also have to adhere to very strict rules and regulations and need to report students who do not adhere to their visa rules; such as not enrolling in time, not attending courses etc.
In order for a student to be able to apply for a ‘General Student’ visa, applicants will have to score 40 points against two sets of objective criteria;
Students granted a general student visa under Tier 4 will still be able to work part time during term time and full time during vacation time. They will also be able to bring dependants with them, provided they fulfil the requirements in this regard.
Please contact our offices for more information.
The UK Home Office has announced new proposals to strengthen the safeguards against forced marriages.
According to the UK Home Office their statistics show that 30% of the cases dealt with by the Forced Marriage Unit involved victims between the ages of 18 and 21. This lead to the proposal that the age at which someone can apply for a marriage visa will increase from 18 to 21 as part of the crackdown on forced marriages.
The five key proposals contained in the Home Office document are:
To raise the age of sponsorship for a marriage visa from 18 to 21 years;
Foreign spouses will be asked to enter into an agreement to learn English before they come to the UK;
A measure will be introduced to revoke leave to remain where there is evidence that the marriage route has been abused;
All sponsors will be require to register their intention to marry overseas before they leave the UK;
To ensure through a code of practice that specialist teams can identify vulnerable people at risk of forced marriage.
The UK Home Office has announced that foreign nationals wishing to become British citizens will have to earn the right to stay in the UK.
The draft Immigration and Citizenship bill that was published on 14 July 2008, will replaces ten Acts of Parliament and make into law the UK Government's shake-up of the current immigration laws. The key measures include;
Powers to immigration officers at foreign ports and airports to cancel visas;
A clear legal duty on migrants to ensure they have permission to be in the UK;
A single streamlined power of expulsion for those without permission to be in the UK;
Migrants will now have to earn the right to stay in the UK;
Full access to benefits for citizens and permanent residents, with migrants contributing a little extra to the cost of local services.
The Home Office confirmed that newcomers to the UK will have to pay extra before they become citizens to create a fund to help police, schools, councils and health services to use the money to deal with the short-term pressures of migration in their areas.
The UK Home Office has produced a policy document to give effect to the High Court's judgement on the HSMP Judicial review on 8 April 2008.
The High Court ruled on 8 April 2008, that migrants who joined the Highly Skilled Migrant Programme (HSMP) before 7 November 2006, had a legitimate expectation that the new stricter extension test requirements, that was introduced would not be applied to them.
This is indeed very good news for migrants on the HSMP programme who received their permit before 7 November 2006, as they will be able to apply for an extension of their permit under the old rules.
If you have joined the HSMP scheme under the arrangements in place from 5 December 2006, you will unfortunately not be covered by the judgement and the new, stricter rules for an extension application will apply to you.
Please contact our offices for more information in this regard.
The UK Home Office has announced tough new visa regimes could be introduced for 11 countries, following a global review of nationals that need a visa to come to the UK.
The Visa Waiver test reviewed all non-European countries against a strict set of criteria to determine the level of risk they pose to the UK in terms of illegal immigration, crime and security. The result of the test showed that there is a strong case for introducing a visa regime for the following countries; Bolivia, Botswana, Brazil, Lesotho, Malaysia, Mauritius, Namibia, South Africa, Swaziland, Trinidad, Tobago and Venezuela.
The implication of this test is that the UK Government will introduce visa requirements for short-term visitors from these countries, unless the countries are able to significantly reduce the risk they pose to the UK by the end of 2008. Visitors from these countries would thus need to apply for a six-month visa, and provide fingerprints before travelling to the UK.
The UK Government said that it will now work with these countries to reduce the risk they pose. If they are indeed able to show evidence of change, a visa regime will not be introduced. However, no final decisions in this regard will be made until early 2009.
The Bank of England has decided to hold interest rates steady at 5% for the month.
The decision has reportedly been widely expected, despite calls from businesses to cut interest rated amid growing concerns about an economic slowdown in the UK. The BBC reported analysts as saying that the Bank of England was facing a tricky dilemma; if it reduces interest rates, it risks losing control of inflation. Conversely, if it increases rates it risks losing control of growth and could trigger a recession in the UK economy.
The BBC reported that Halifax, the UK's biggest mortgage lender, announced that house prices fell by 2% during the month of June 2008. This meant that prices were now 6,1% lower than a year ago, and brings the average house price at the same level as in August 2006.
The average home now costs £180,344.
Halifax said however that housing values retained firm, because of strong employment levels, low interest rates and a shortage of new houses.
The UK Home Office has announced that an agreement has reached with the US Government to speed up travel between the UK and the US for trusted people who travel regularly between these two countries.
The UK Immigration Minister, Liam Byrne, said that speedy travel between the UK and the US is crucial to large financial organisations and that an agreement was therefore reached to speed up movement between these two countries for trusted people.
He also said that details will be published on how the new Points Based System for those seeking work in the UK will apply to the financial industry.
The UK Home Office has rolled out Tier 1 of the new Points Based Immigration System worldwide on 30 June 2008. Tier 1 includes the category for highly skilled workers, entrepreneurs, investors as well as the category for post-study work.
The eight immigration categories that are being deleted with the implementation of Tier 1 are:
Please contact our offices for more information.
The BBC has reported that Immigration Minister, Liam Byrne, has decided to drop plans to make families pay a cash bond for relatives who visit from outside the EU. Scrapped proposals in this regard suggested that families pay a £1,000 deposit for visiting relatives to ensure they left the UK on time. Mr Byrne said that the UK Government concluded that the plan would not work.
Instead, new Home Office proposals are that families who sponsor overseas relatives to visit Britain will face fines of up to £5,000 and possible prison sentences if their relatives overstay.
Other proposals announced by the UK Home Office include;
Two new business visas for sportspeople and entertainers;
Setting the maximum leave for visitors at six months;
Introducing an appeal system for those coming under the family route;
A new short-term, low-cost group travel visa to promote British tourism, and;
A visa for people coming to the UK for one-off cultural events such as the Edinburgh festival.
The Guardian newspaper reported that the UK Government's plans to insist that spouses should have to learn English before they are allowed into Britain to join their husbands or wives, have run into a barrage of opposition.
Immigration lawyers reportedly told ministers that such a proposal could breach the human rights convention's guarantees to the right to marry and have a family life.
Respondents to the consultations also felt that English was best learned in the UK where classes were available and the spouse was immersed in the British way of life.
The Guardian newspaper reported that a study published by the UK Department of Work and Pensions found that British workers lack the skills and motivation to fill the job vacancies that have been taken over the past four years by the influx from migrants, mainly from Eastern Europe.
The study further found that the generally poor position of low-skilled workers doesn't reflect a lack of available jobs or formal qualifications, but rather issues around basic employability skills, incentives and motivation.
The study was commissioned in the light of the considerable public concern that migrant workers were displacing native workers, and confirmed anecdotal evidence from employers that they regard migrant workers as more reliable, harder working and more productive.
The study came as the Home Office produced evidence showing that recent immigration has boosted economic growth by 0,15% per year a head of non-migrant population. This is the equivalent of £1,650 in earnings for every British resident over the past decade. The UK Government was also reported as saying that vacancies have risen over the past year to a record high of 680,000 demonstrating that there are plenty available jobs for British workers.
The UK Home Office has announced that it has added two new occupations to the national shortage occupation list for work permits and amended two occupational titles.
Occupations added to the list are; electricity generation engineers and high integrity pipe welders. The amended to the occupational list are quantity surveyor and pharmacist (including pre-registration pharmacists).
From 18 July the following occupations will be removed from the list; CAA licensed aircraft engineers and consultant posts in geriatric medicine and rehabilitation medicine.
The implication of an occupation being removed from this list is that work permits can still be issued for these occupations, but employers are now required to advertise these posts. Where the employer can demonstrate, after advertising, that there is no suitably qualified resident or EU citizen candidate available to fill the vacancy, a work permit will still be issued.
Please contact our offices for more information.
The Bank of England's Monetary Policy Committee has decided to keep interest rates on hold at 5%.
This decision was widely expected amid concerns about the rising inflation rate, although there were some calls for cut in interest rates in order to counter the economic slowdown and falling UK house prices.
The BBC reported that most analysts expect interest rates to be left unchanged for several more months.
The BBC reported that a study by the Work Foundation found that skilled migrants were needed for the UK in areas such as science, healthcare and technology.
The author of the report also said that the UK needed to be seen as an open and attractive place for skilled employees and that hostility towards immigrants could stop companies from attracting highly-skilled workers from abroad. If the UK is deemed to be seen as unwelcoming to highly-skilled migrants, they will go elsewhere to competing countries like the US, Canada and Australia.
The report further found that despite the high-profile immigration debate in the UK, the number of skilled workers moving to the UK was relatively low. According to official figures 167,000 skilled workers came to the UK in 2005, but many more were needed if Britain was to prosper in the global market.
The Guardian newspaper has reported that figures from the Office for National Statistics indicates that nearly two millions Britons left the UK between 1997 and 2006.
An analyst from the Public Policy Research was reported as saying that this was the biggest emigration wave from Britain in absolute numbers, although a larger proportion of the the population left during the 1930's and in the middle of the 19th century.
Many of the Britons who have left, have left to retire abroad, although only about 6% were over the retirement age. Australia was the most popular destination.
Some of the Britons who left were overseas citizens, who obtained British citizenship and later left again for their home countries.
The outflow has however been balanced by the inflow of about 3,9 million foreigners who arrived over the same period.
The UK Government has released its latest statistics on British citizenship granted in the year 2007. Please see the table below for the nationalities with the largest grant of British citizenship.
Nationalities with largest grants of British Citizenship in 2007;
|
|
Nationality |
Number |
Percentage |
|
1 |
Indian |
14490 |
9% |
|
2 |
Filipino |
10840 |
7% |
|
3 |
Afghan |
10555 |
6% |
|
4 |
South African |
8150 |
5% |
|
5 |
Pakistani |
8140 |
5% |
The Guardian newspaper reported the Royal Institution of Chartered Surveyors (RICS) as saying that a drop in UK house prices is being reported by almost every estate agent. A shortage of homes coming on to the market has so far limit the extend of the fall in house prices.
Data from the Bank of England shows that loan rates for some products had risen, despite interest rate cuts by the Bank of England, showing the tougher climate borrowers are facing.
According to the RICS, there would be a shortage of house supply while mortgage arrears remained low and employment prospects good.
The Bank of England's Monetary Policy Committee has kept interest rates at 5% for the month of May 2008. Analysts seem to agree that a rate cut to 4,75% can be expected in June.
According to a Statement of Intent that was released by the UK Government, the new Youth Mobility Scheme will replace the current Working Holiday Visa, when it is implemented in the autumn of 2008.
The Youth Mobility Scheme will operate on the principle of balances. Nationals from participating countries will be allowed to come and experience the UK for two years, provided young UK nationals may enjoy similar opportunities in participating countries. Each year, the UK Home Office will publish a list of countries that qualify for the Scheme, together with the number of places on the Scheme that are allocated to each country.
To qualify for the new Youth Mobility Scheme a person has to 50 points to qualify for this scheme;
Successful applicants will be allowed to live and work in the UK for up to 24 months, and are free to do whatever work they like, except for setting up a business and professional sport or work as a doctor in training.
It remains to be seen as to whether sufficient arrangements are being put in place between the UK and South Africa for the Youth Mobility scheme to apply to South African citizens. However at present it appears unlikely that South Africa will be part of the new scheme at the onset.
Breytenbachs thus advises South African clients that would like to apply for the working holiday visa to contact our offices without delay.
The current work permit scheme is being replaced by Tier 2 of the new points based immigration system. According to the Government’s Statement of Intent on the issue, Tier 2 will begin to be implemented in the autumn of 2008.
Under the new Skilled Migrant Tier, an employer would first need a licence from the UK Border Agency in order to employ citizens from outside the European Economic Area. Licensed sponsors will indicate the migrants they wish the UK Government to admit by issuing them with a Certificate of Sponsorship. However, this Certificate of Sponsorship does not guarantee that entry clearance will be issued to the applicant. As a condition of keeping their sponsorship licence, employers will need to alert the UK Home Office if migrants do not comply with their immigration conditions, such as not turning up for their job or disappearing. Failure to comply with this requirement could result in the sponsor losing its licence.
An applicant wanting to come to work in the UK under this tier will need to show that he/she has at least 70 points to qualify under the criteria for this scheme – see table below. The points will include points related to the Certificate of Sponsorship, which will be issued to them by the prospective UK employer to fill a qualifying job. Two control tests are included as well, namely;
| Section | Certificate of Sponsorship | Qualifications | Prospective Earnings | |||
| A | Job offer in shortage occupation | 50 | No qualifications | 0 | £17,000 - 19,999 | 5 |
| Offer of job that passes | 30 | NVQ3 | 5 | £20,000 - 21,999 | 10 | |
| Resident Labour Market Test | ||||||