Upcoming MAC work route review will need employer input

On 6 August 2024 the Home Secretary commissioned the MAC to carry out a wide-ranging review of why UK employers are currently using work immigration routes to address skills gaps for IT, telecoms and engineering roles. The commission also asks for an opinion on what the potential future demand on the immigration system is likely to be.

What has the MAC been asked to look at?

The government is interested to know:

• What types of role are in shortage and the reasons for this, including factors such as training, pay and conditions;
• How employers have sought to address shortages, other than through international recruitment;
• What impact having roles on the shortage occupation list has had on the occupations (if relevant);
• What options there may be within the immigration system to incentivise employers to recruit from the domestic workforce (including whether to reform the Immigration Salary List).

The MAC has been invited to consider a wide range of options, including evaluating whether a differentiated approach based on factors such as region or occupation may be appropriate. The government seeks to avoid undercutting the wages of British workers or overcomplicating the system.

When will the report be available?

The report is due in mid-May 2025.

What will the report be used for?

On the immigration front, it is expected that the government will use the MAC’s findings to inform changes to the eligibility criteria for sponsoring these roles, and to consider whether to reform the Immigration Salary List more generally.

It will also be used to form part of the evidence base for a broader workforce strategy aimed at addressing labour and workforce shortages in the targeted occupations. A coordinated, cross-organisation approach to analysing the UK labour market is a key policy of the current government. As part of this, evidence on the nature and solutions for skills gaps will be drawn from the MAC alongside Skills England (once established), the Industrial Strategy Council and the Department for Work and Pensions.

Based on the government’s announcements so far, we anticipate a more intensive and sophisticated engagement with the government on workforce composition, remuneration and training commitment may be required to sponsor workers.   

Why should employers engage with this review?

The occupation groups flagged for review are within the top 10 sectors that currently use the UK immigration system to fill vacancies. This means that more employers are likely to be affected by changes in immigration policies that target these roles in comparison with other ones.

Also, IT professionals are employed across all sectors of the economy, so most employers who recruit international talent are likely to be impacted by polices that include IT occupations.

How will the MAC be gathering input from employers?

Aside from analysing data provided by the Home Office, the MAC plans ‘targeted engagement’ with stakeholders. This will likely include consultation with industry representative bodies and employers who are the highest users of work routes.  

We’ll be monitoring developments on stakeholder engagement and will provide further updates as more information is released.