Recommendation 9

HM Government Accepted

1.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2025 1.2 As recognised by the National Audit Office, changes to immigration rules are subject to collective government agreement. In considering potential changes to the Skilled Worker visa route, the Home Office has engaged with other departments and, in particular, worked collaboratively with the Department of Health and Social Care (DHSC) on the social care sector. The Labour Market Evidence Group (LMEG) will further strengthen collaboration between the Home Office and departments leading on labour market and skills. 1.3 The Immigration White Paper published on 12 May set out some of the government’s thinking on how the LMEG would operate. It will consider workforce strategies looking at the following issues: • How far the workforce strategy is underpinned by a skills strategy; • How far it is underpinned by a commitment to work with the Department for Work and Pensions on a domestic labour strategy; • How the sector will manage the risk of exploitation of workers, particularly migrant workers in the sector; and • Whether the strategy is sufficiently ambitious. 1.4 The former Home Secretary also commissioned the Migration Advisory Committee (MAC) to undertake a review of salary thresholds and the Temporary Shortage List (TSL). As part of this review, the MAC is working with the LMEG to collect and analyse relevant data. 1.5 The government agrees with the Committee’s recommendation. Target implementation date: July 2026 1.6 The Immigration White Paper (IWP) highlighted that work-based migration has been driven by particular sectors who have been forced to rely on overseas recruitment due to shortages linked to skills, training, and conditions here in the UK. 1.7 The lack of a comprehensive workforce plan has limited the ability of sectors to address the underlying drivers of shortages. The IWP set out that key sectors, where there are high levels of overseas recruitment will need to produce, or update, workforce strategies which relevant employers will be expected to comply with. The MAC will recommend occupations be added to the TSL, only if they have an effective workforce plan in place. The MAC is working with other members of the LMEG develop and share evidence about the state of the workforce, training levels and participation by the domestic labour market, including at Devolved government and regional levels. It is focused on the eight Industrial Strategy sectors. It is expected the MAC will have almost concluded the second part of their current commission on the TSL by July 2026. 1.8 In the context of the objectives of the industrial strategy, Immigration White Paper and TSL review, the LMEG is developing guidance for sector experts across government to develop workforce strategies where needed. These will likely focus on assessing the size of occupational shortages, diagnosing what is causing shortages, and the actions of government and employers to close shortages.