MAC publishes report recommending expanded shortage occupation lists

The report was published on 29 September 2020. In it, the MAC has erred on the side of being more willing to recommend some occupations for inclusion on the shortage occupation lists (SOLs) on the basis it is sensible to do so in the context of the ongoing COVID-19 pandemic.

The MAC has suggested it would be appropriate for a minor review of the SOLs to take place on an annual basis, with a major review to be scheduled every three years once the economy is no longer affected by the pandemic. New occupations could be added following a minor review, and others flagged for removal but not actually removed. Occupations at risk of removal would however be flagged. A major review would involve a full assessment of all occupations. This would replace the current ad hoc approach with a predictable schedule of reviews, providing more timely responses to changing labour market conditions and more predictability for employers.

What benefit will there be to an occupation being accepted as being in shortage?

In general, rather than being paid at least the higher of either £25,600 or the going rate for their occupation, migrants filling shortage occupation roles will only need to be paid at least the higher of £20,480 or 80 percent of the going rate for their occupation. Lower rates also apply for occupations covered by a national pay scale and to individual migrants who have a PhD that is relevant to their role or who fall within the definition of being a ‘new entrant’ to the labour market.

Employers outside of the highest earning cities in the UK will find it more affordable to sponsor individuals in shortage occupations under Skilled Worker than under the present Tier 2 (General). The overall cost of sponsorship will still be high however, so some employers may opt instead to wait for a candidate who does not require sponsorship, or to offshore or eliminate roles through business restructuring. 

What occupations are recommended for deletion?

Chefs are not considered to be appropriate for continued recognition at the present time, but the position will be reviewed in the MAC’s proposed 2021 report. This RQF level 3 occupation will be eligible for sponsorship under the Skilled Worker route, however employers will have to pay at least £25,600 to do so, which represents a wage level at the 70^th percentile for this occupation. Once the economy has recovered from the effects of the pandemic, it is likely that employers will ask for chefs to be added back to onto the list as it will in many cases be uneconomical to sponsor them otherwise.

What occupations are recommended for inclusion?

The new Skilled Worker route will cover occupations from RQF level 3 (A-level equivalent) and higher, whereas Tier 2 (General) only covers occupations from RQF level 6 (degree level equivalent). It is therefore not surprising that the suggestion is to significantly expand the lists at the present time.

If accepted by the Home Office, the occupations recognised as being in shortage would rise from approximately 9 percent of total UK employment to approximately 14 percent.

The bulk of the newly recommended occupations fall within RQF levels 3 to 5. The Scotland-only list has been flagged for expansion, and new lists for Wales and Northern Ireland have been recommended for the first time.

At least initially, the MAC recommends retaining all the currently recognised shortage occupations at RQF level 6 or above. In addition, three new occupations (health services and public health managers and directors, pharmacists and physiotherapists) have been considered suitable for inclusion on the UK-wide list. One new RQF level 6 occupation, Health professionals n.e.c, has been recommended for the Wales-only list, which covers job titles such as audiologist, dental hygiene therapist, dietician-nutritionist, family planner, occupational health adviser and paramedical practitioner.

Senior care workers, nursing assistants and a range of other health occupations are reluctantly recommended for recognition as being in shortage. The MAC’s view is that although it would be better for wage funding to be increased to address lack of staff to fill these roles, the end of free movement for EEA/Swiss nationals and their family members will place significant pressure on the social care sector if this does not happen soon, or at all. Employers of senior care workers should however be aware that Home Office is likely to heavily scrutinise whether a particular migrant’s duties and responsibilities meet the definition of being a ‘senior’ carer.

Two occupations have been recommended for ‘upgrade’ to RQF level 3, meaning that they will be eligible for sponsorship under the Skilled Worker route. These are vent chick sexers and deckhands on large fishing vessels of 9 metres and above. Deckhands have also been recommended for inclusion as a shortage occupation.

Below is a listing of the new occupations recommended for inclusion. These are in addition to the occupations currently recognised at RQF Level 6 and above as set out in the Immigration Rules, Appendix J.

New inclusions to the UK-wide shortage occupation list

New inclusions to the shortage occupation list for Scotland

New shortage occupation list for Wales

New shortage occupation list for Northern Ireland

We will be taking a detailed look at sponsoring skilled workers under the new immigration system at our Immigration Law Academy on 23 and 24 November. We also offer a range of training, handbooks and onsite support in this area through our Immigration Solutions for HR. If you have any queries about this development, please get in touch with a member of the immigration team.