What is a points-based immigration system and how does it impact your sponsorship activities?
What is a points-based immigration system and how does it impact your sponsorship activities?
The UK Government introduced the points-based immigration system on 1st January 2021 after the free movement of EU, EEA, and Swiss nationals ended due to Brexit.
The main goal of the points-based system is to encourage businesses to hire local talent while also providing opportunities to hire the best talent from across the globe via several different routes.
Under the new system, EU, EEA, and Swiss nationals are subject to the same immigration rules as citizens of other countries, which marks a departure from the previous system that allowed free movement of labour from these countries.
The system has come under criticism, as it has contributed to the skill shortages in many industries, including the hospitality, health and care, and food and drink sectors, which depended on the free movement of labour.
On a positive note, the system has effectively doubled the number of roles suitable for sponsorship—jobs that can be fulfilled by international workers—thus allowing businesses to hire medium and highly skilled workers under the Skilled Worker visa route.
Let’s take a deep dive into the points-based immigration system and how it impacts the sponsorship activities of employers in the UK.
How does the points-based immigration system work?
The points-based system requires anyone who wants to come to the UK for work to meet a specific set of requirements, which will earn them a certain number of points. Visas are granted only if they earn the required number of points.
The system also introduced the Skilled Worker visa route, replacing the old Tier 2 visa route as the primary long-term work visa route.
To qualify for a Skilled Worker visa, applicants must demonstrate that:
- They have a job from a Home Office-approved licensed sponsor
- The job role is at the required skill level (RQF 3 or above/A Level and equivalent)
- They can speak English at the required level
- The salary for the role is £25,600 or the going rate for the occupation, whichever is higher
To obtain a Skilled Worker visa, applicants must score a total of 70 points. Out of the 70 points, 50 points are awarded for meeting mandatory requirements while the rest are awarded for tradeable requirements.
This means that applicants can trade characteristics such as qualifications against a lower salary to earn the required points.
Here’s a quick breakdown of points awarded for meeting various requirements.
| Characteristics | Mandatory/tradeable | Points |
|---|---|---|
| The applicant has a valid job offer from an approved sponsor | Mandatory | 20 |
| The job offered meets the skill level requirement | Mandatory | 20 |
| The applicant speaks English at the required level | Mandatory | 10 |
| Salary of £20,480 to £23,039 or at least 80% of the going rate for the profession (whichever is higher) | Tradeable | 0 |
| Salary of £23,040 to £25,599 or at least 90% of the going rate for the profession (whichever is higher) | Tradeable | 10 |
| Salary of £25,600 or above or at least the going rate for the profession (whichever is higher) | Tradeable | 20 |
| The job offered is in a shortage occupation as designated by the Migration Advisory Committee | Tradeable | 20 |
| The applicant has a PhD in a subject relevant to the job | Tradeable | 10 |
| The applicant has a PhD in a STEM subject relevant to the job | Tradeable | 20 |
How does it impact sponsorship activities?
Firstly, you must be a licensed sponsor if you wish to hire an international worker under the points-based immigration system—the old system allowed employers to hire EU, EEA, and Swiss nationals without a sponsorship licence.
It should be noted, however, that you can still hire Irish nationals without a sponsor licence.
Under the new system, you should also ensure that your candidates meet all the requirements, including the English language requirement. You must also prove that you have a genuine vacancy and can meet the salary requirement for the job you’re offering.
But unlike in the old immigration system, to sponsor workers, you no longer need to prove that the resident workforce can’t fill the vacancy.
Learn more about the points-based immigration system from experts
At Nation.better, our team of immigration and legal experts help you understand the points-based immigration scheme and guide you through the sponsorship process, allowing you to hire the best talent for your organisation.
Get in touch with our experts if you’d like to learn more.
Related articles
Blog post heading
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium dolor...
Blog post heading
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium dolor...
Blog post heading
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium dolor...