Technology entrepreneurs, investors and advisers have called for an urgent review of visa rules, warning that restrictions on skilled workers are creating a “skills crisis”.
With a cap on the number of visas issued for skilled non-European workers being reached for an unprecedented fourth month in a row in March, a group representing the technology industry has warned the government that the rules are “no longer fit for purpose”.
Tier 2 visas for skilled workers from outside the European Economic Area and Switzerland are issued by the Home Office on a points-based system, which measures qualifications. Higher-paid workers receive priority once employers have shown that they cannot hire the staff they need within the UK.
The cap is broken into fixed monthly allocations. Until December, the monthly quota had been exceeded only once since its introduction in 2011.
Tech London Advocates, a not-for-profit group that promotes the interests of technology entrepreneurs and London as a technology hub, has written to Caroline Nokes, the immigration minister, demanding that the annual quota is raised from its present level of 20,700.
The letter’s 62 signatories include Alex Macpherson, chairman of Octopus Ventures, a venture capital company; Ben Brabyn, chief executive of Level39, the Canary Wharf hub for financial technology start-ups; and Sherry Coutu, chairwoman of the Scaleup Institute and an investor in companies including Zoopla and Lovefilm.
The letter, which has been seen by The Times, warns that it is becoming harder to recruit the skilled software engineers on whom the industry relies.
“Mounting job vacancies in critical areas now threaten to halt growth and it is vital that UK businesses have access to the vast pool of skilled overseas workers that are needed to help fill Britain’s growing skills shortage,” it says. “The failure to address the international talent requirements of Britain’s tech businesses means the UK is now heading towards a skills crisis that threatens the future success of the industry.”
It is thought that the cap is being reached because employers are having to cast their nets more widely to make up for falling numbers of European immigrants.
“The economic case for increasing the number of Tier 2 visas is evident. Of course, we need to nurture home-grown tech talent, but demand is outstripping supply and we need effective visa routes for world-class tech professionals to come to the UK,” Tech London Advocates says.
In its letters, the group adds that the requirements of the system are “confused” because the private sector, including technology companies, is competing with the NHS to secure Tier 2 visas. More than a third of the allocation goes to staff for the health service.
Senior healthcare staff have complained that the quota is making it difficult to recruit enough doctors. The minimum annual pay required to secure a visa changes according to the number and nature of applicants, and has doubled since last year as demand has grown.
Two years ago applicants needed to score at least 21 points for their application to be successful. By last month, this had risen to 56.
The Home Office did not respond to a request for comment.
Further information
If you are an employer or recruitment business or a candidate and assessing options to work in the UK or assist a highly skilled Non-EU to work in the UK, do get in touch.
Potential discussions regarding Tier 2 route and alternate routes which could be a solution.
Thanks in advance
Mason