Has the government backed down on its immigration promise?

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The government has announced its immigration cap and from what I can see there will be no reduction in the number of workers coming form overseas on Intra Company Transfers (ICTs).

Theresa May announced a total limit on labour immigration for the 12 months from April at 21,700.

Tier one immigrants, who are deemed highly skilled, will be hit hardest and only 1000 will be able to enter next year. Tier two immigrants, who have a job offer in the UK, will actually increase from 13,000 to 20,700.

And there will, as David Cameron has already said, be no cap on ICTs. Although the government has put in place a policy that means ICTs staying over one year will have to earn at least £40,000.

The problem with that is many of the IT workers in the UK from countries like India are only here for a short time. They might be involved in a transitional IT project or learning about a customer. These workers only have to be paid a minimum of £24,000.

So there is likely to be as many ICTs as ever. There will probably be more if the government starts to offshore more work to cut costs.

It could be seen as counter-productive if the government increased the cost of ICTs just as it was about to make use of large volumes of Indian IT workers as it transforms government processes.

Also once employers have added living expenses on top of salary I think this will add up to over £40,000 for IT workers. Theresa May said nothing about clamping down on the practice of bundling salary with expenses.

 

 

3 Comments

Can anyone say they are honestly shocked by this?, this has been carefully crafted to give the impression of clamping down on ICT's while still letting big business keep their tax dodge for the majority of their needs.

Well done Theresa!, the writers of "Yes Minister" would be proud of you.

I expect any letters of complaint on this subject will now be met with replies like "The government has just implemented firm and decisive action to clamp down on ICT abuse, whilst still allowing ICT to meet the very important needs of British business"

Meanwhile the number of UK IT staff and graduates joining the dole queue will lengthen even more than they have already.

Its been waterdown so much that it has no value whatsoever.

An IT on an ICT for a year means that one less job for a contractor or a perm.

What you will likely see is a massive increase in the number of ICT for IT professionals. They will transfer a replacement employee for someone already in the UK who is reaching his 12 month limit.

Utterly utterly pointless, rubish. A con job nothing more than that.

The changes will do very little to limit ICT abuse. There will be less and less job opportunities for UK IT workers.

I can't wait to find out what happens to someone who has been here for a year at less than £40k and needs to extend. They will probably need to disappear for 2 weeks and come back for another year at less than £40k. The £40k will be meaningless.

And May, in response to an MPs question, confirmed that the use of allowances would remain.

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About this Entry

This page contains a single entry by Karl Flinders published on November 23, 2010 4:13 PM.

Home secretary to announce immigration cap at 3.30pm today was the previous entry in this blog.

Damian Green reveals just how IT firms will sidestep new ICT rules is the next entry in this blog.

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