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New Points System Goes Live

29 February 2008

The biggest shake-up of the immigration system in 45 years got underway today with the introduction of a new points system to ensure only the best can work in Britain, new licenses for businesses who want to employ migrants and big on-the-spot fines for those not obeying the rules and found hiring illegal workers.

Britain’s Australian-style points system kicks-off with new rules for highly skilled foreign nationals currently working in the UK and who want to extend their stay. The scheme is designed to attract the most talented with the skills the UK needs to remain a global leader in the fields of finance, business, and technological innovation.

The Government is also today introducing a licensing system for employers who want to recruit from overseas and bring skilled workers into the UK. No company will be granted a sponsor’s licence without being approved in advance by the Border and Immigration Agency (BIA). Employers bringing in skilled workers under Tier 2 of the scheme which takes effect this autumn can now start applying for that licence.

Home Secretary Jacqui Smith said:

“The introduction of our Australian-style points system will ensure that only those with skills the country needs can come.

“Migrants benefit this country economically, contributing an estimated £6bn to our national output, as well as socially and culturally and it is right that we have a system which is fair but firm, accessible but controlled.

“Today’s proposals are part of the biggest changes to British immigration policy in a generation which include a new deal for those migrants seeking citizenship here, a new UK Border Agency to strengthen controls at the border and the introduction of ID cards for foreign nationals.”

Alongside the Government’s plans to ensure Britain has access to the skills and talents it needs, rogue employers from today face civil penalties of up to £10,000 for each illegal worker they employ. Those found to have knowingly hired illegal workers could incur an unlimited fine and be sent to prison. The change comes as BIA stepped up action in 2007 against illegal working by 40 per cent.

Immigration Minister Liam Byrne said:

“Today sees the start of our points system and the beginning of on-the-spot fines for businesses who employ illegal workers, introduced a day ahead of schedule.

“New £10,000 penalties mean instant justice for those firms who try and undercut others by employing illegal immigrants. With the new compulsory identity cards for foreign nationals later in the year, there can be no excuse for not checking the identity of those applying for jobs.

“The key to shutting down illegal immigration is to shut down illegal jobs. Last year we stepped up our illegal working operations by 40 per cent. Now our enforcement teams have a host of new powers to shut down dodgy bosses who draw illegal immigrants to Britain.”

As the measures announced today take effect the Government is also taking steps to target rogue employers through new legislation in the Employment Bill. The Bill proposes tough new penalties for businesses not paying workers the minimum wage and agencies which exploit workers and undercut legitimate business.

This year will also see the establishment of a new UK Border Agency to ensure the UK has one of the toughest borders in the world. Further measures include the introduction of a new system to count people in and out of the UK and ID cards to strengthen the UK border and help keep out those who don't have the right to be here.

 

Notes to Editors

1. The Employment Bill (2007-2008), introduced by the Department for Business, Enterprise and Regulatory Reform, will ensure there is no hiding place for rogue employers who try to exploit vulnerable workers. The aim is for the new legislation to receive Royal Assent by summer 2008. The key aspects include:
   • increasing the penalties for non-payment of the National Minimum Wage. Everyone caught out will face the potential of unlimited fines;
   • a shake-up the currently bureaucratic and burdensome statutory workplace grievance procedure. Disputes will be resolved at an earlier stage with improvements to the way employment tribunals work;
   • the Bill will ensure that no business is allowed to get away with unfairly undercutting legitimate operators by exploiting workers;
   • there will be clearer rights for Trade Unions to determine their membership; and
   • strengthened investigative powers for the Employment Agency Standards Inspectorate, allowing them greater scope to access financial information to check whether a worker’s complaint is an isolated instance, or an example of widespread abuse.

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