Latest Migration Advisory Committee Release Summary

The Migration Advisory Committee (MAC) has published its latest annual report, providing an in-depth review of the UK’s immigration system, recent trends, and government-commissioned reviews.

In this post, we summarise the key highlights from the Migration Advisory Committee's 2024 Annual Report, recently published on the UK government website.

What is the Migration Advisory Committee?

The Migration Advisory Committee is an independent, non-departmental public body that advises the UK government on migration policy. Its core role is to provide evidence-based recommendations to help shape immigration routes, salary thresholds, and workforce reliance on migration.

The MAC operates under a governance framework that requires it to produce an annual report, which:

• Informs Parliament and the public about its work and resource use.
• Provides insights, recommendations, and analysis of key aspects of the immigration system.

Through its independent approach, the MAC delivers analysis that helps policymakers address migration challenges and opportunities in a rapidly evolving economic and social landscape.

About the Latest Annual Report

The MAC's latest annual report is divided into three chapters, each focusing on a different aspect of the UK immigration system:

• Chapter 1 examines the relationship between work immigration and skills policy, exploring how reliance on international recruitment can be reduced through greater investment in the domestic workforce.
• Chapter 2 provides a detailed fiscal analysis of migrants on the Skilled Worker visa, highlighting their contributions to public finances.
• Chapter 3 reviews the Seasonal Worker visa scheme, discussing its economic necessity, impact on food security, and risks of exploitation, while also considering automation as a potential long-term solution.

Link Between Work Immigration and Skills Policy in the UK

The report highlights that the UK saw unusually high net migration between 2021 and 2023, largely driven by an increase in non-EU work-related immigration. Work visas, particularly through the Skilled Worker visa route, played a significant role, with a sharp rise in visas issued for health and care roles. The health and care worker visa alone accounted for 57% of all Skilled Worker visas in 2023.

Since late 2023, however, the number of health and care visas has dropped significantly. This decline coincided with changes to how the Home Office assesses visa applications, including stricter enforcement of the ‘genuine vacancy test.’ Additionally, from March 2024, care workers were no longer allowed to bring dependants, further reducing visa numbers. Despite these changes, the health and care sector remains one of the largest users of work visas.

In response to these trends, the government has introduced policies to reduce immigration further. For example, in April 2024, the salary threshold for most Skilled Worker visas increased from £26,200 to £38,700, except for healthcare roles, which have a lower threshold of £29,000. These measures aim to reduce reliance on international recruitment, particularly in lower-paid sectors like care work. We cover this in more detail in our update about the UK Immigration Salary List.

The government is also focusing on linking immigration policy with domestic skills development. However, increasing domestic skills is not a quick fix. While the UK invests in training, employers often prefer to recruit internationally to find the best match for their needs. For instance, in 2023, 46% of Skilled Worker visa holders in the private care sector were filling roles that domestic workers could potentially perform. Yet, poor pay and working conditions deter many UK workers from entering these fields.

Figures show that work-related immigration has had a lasting impact on net migration. Between 2020 and 2023, non-EU work migration accounted for 45% of the growth in non-EU immigration. In comparison, study-related immigration, which initially drives up numbers, often leads to lower long-term migration as students tend to leave after their courses.

Addressing labour shortages will require more than just improving skills. Sectors like social care, which heavily rely on visas, also need better pay and working conditions to attract UK workers. For example, care workers are typically paid below the national median wage despite high demand for their roles.

The government’s efforts to reduce immigration need to balance the immediate demand for skilled workers with the long-term goals of developing a strong domestic workforce. However, skilled migration continues to provide economic benefits, including higher productivity and significant fiscal contributions. Finding the right balance will require targeted policies that address sector-specific challenges while maintaining access to global talent where necessary.

Fiscal Analysis of Migrants on the Skilled Worker Visa

The Migration Advisory Committee published its first in-house estimates of the fiscal impact of migrants on the Skilled Worker visa. The findings highlight the positive economic contributions made by Skilled Workers and their households, especially compared to UK-born individuals and households.

Key Figures

• Individual Net Fiscal Impact: In 2022/23, the average Skilled Worker visa holder had a positive net fiscal impact of £16,300, compared to £800 for the average UK-born adult.
• Household Net Fiscal Impact: The typical Skilled Worker visa household contributed a net £12,000 to public finances, while the equivalent UK household had a negative fiscal impact of £4,400.
• Health and Care Workers: Skilled Workers in the Health and Care visa route had a lower net fiscal impact (£7,900) than those on other Skilled Worker visas (£28,500). This difference is mainly due to lower salaries and a higher number of dependants in Health and Care visa households.

Why Skilled Workers Have a Strong Fiscal Impact

1. Higher Tax Contributions: Skilled Workers earn higher salaries (median of £45,000 for non-Health and Care Skilled Workers vs. £28,000 for UK adults), resulting in greater tax contributions. On average, Skilled Workers contributed £21,400 in taxes, £5,900 more than the UK adult average.
2. Lower Public Spending: Skilled Workers account for lower public expenditure (£6,200 per person) than UK-born adults (£16,500), partly because they are generally younger (84% aged 20–40) and ineligible for benefits like pensions or welfare due to "No Recourse to Public Funds" rules.
3. Visa Fees: Skilled Workers and their dependants also pay visa-related fees, which generate additional revenue for the government.

Seasonal Worker Visa Scheme Review

The MAC’s review of the Seasonal Worker Visa scheme highlights its critical role in supporting UK horticulture and poultry production while addressing significant challenges related to worker rights and exploitation.

Key Points and Figures

• Reliance on Migrant Labour: Since its reintroduction in 2019, the Seasonal Worker scheme has become essential for the horticultural sector, particularly after the end of Freedom of Movement. In 2023, 33,000 visas were issued under the scheme, compared to an average of 38,000 EU workers in agriculture before Freedom of Movement ended.
• Changing Workforce Composition: Due to geopolitical factors and recruitment challenges in some regions, the scheme has seen a shift from Ukrainian workers (pre-2022) to workers from Central Asia, such as Kyrgyzstan and Tajikistan.
• Low Domestic Participation: UK workers rarely take seasonal agricultural jobs due to low pay, challenging working conditions, and the temporary nature of the roles.

Challenges and Concerns

1. Worker Vulnerabilities and Exploitation:

• Seasonal workers often face risks such as debt bondage, poor accommodation, and limited knowledge of their rights.
• Workers may pay high upfront costs to unofficial agents and fear job or visa loss if they report exploitation.
• Language barriers and rural job site isolation exacerbate the power imbalance between workers and employers.

2. Impact on Food Security:

• The Seasonal Worker visa is crucial for maintaining domestic food production, which ensures a stable supply of affordable, nutritious food.
• Reducing reliance on imports avoids vulnerabilities in global supply chains.

3. Barriers to Automation:

• Farmers hesitate to invest in costly automation technology due to the uncertainty of the Seasonal Worker scheme, which is only confirmed year by year.
• Countries like the Netherlands have made progress in agricultural automation, but UK implementation will require significant funding and innovation.

Summary of the MAC’s Recommendations to the Government

• Certainty for Employers: Confirm visa numbers and extend the scheme’s timeline to encourage investment in automation and long-term planning.
• More Flexible Visas: Adjust visa rules, such as shortening the cooling-off period, to maximize worker earnings and improve employer efficiency.
• Fairer Work and Pay: Guarantee workers at least two months’ pay to cover upfront costs and simplify the tax refund process for migrant workers.
• Strengthening Worker Rights: Improve enforcement coordination and ensure clear communication of rights in workers’ native languages.
• Employer Pays Principle: Investigate equitable sharing of visa and travel costs across the supply chain to reduce workers' financial burdens.

What Happens Next?

The Migration Advisory Committee awaits the government’s response to its recommendations on various immigration topics, including the Seasonal Worker visa scheme and other reviews.

Future Reviews Commissioned by the Government

• Family Visa Financial Requirements: Findings expected in June 2025.
• Work Immigration for IT and Engineering Professionals: Focused on migration reliance and domestic recruitment incentives.

Planned Government Framework

The government plans to establish a collaborative framework involving the MAC, Skills England, the Industrial Strategy Council, and the Department for Work and Pensions. This framework aims to:

• Address reliance on international recruitment in specific sectors.
• Link skills development policies with immigration strategies.
• Create workforce plans for sectors heavily dependent on migration.

Additionally, the MAC will provide annual assessments of key sectors' reliance on immigration, helping to shape targeted and balanced migration policies.