The Home Secretary commissioned the Migration Advisory Committee (MAC) to conduct a "rapid review" of the UK Shortage Occupation List (SOL), which is to be replaced with the Immigration Salary List (ISL). The MAC's recent recommendations will now be reviewed by the government but are expected to form the basis of the new ISL, which is expected to come into force in April 2024. The proposed changes include the replacement of the SOL with the ISL, raising the general salary threshold for the Skilled Worker route and abolishing the 20% "going rate" (now referred to as "occupation-specific thresholds") discount for occupations on the SOL.

Pay scale occupations, which include medical and education professionals subject to national pay-scales, were considered to not receive any meaningful benefit from ISL inclusion, as their occupation-specific thresholds are in all cases above the £23,200 general threshold that applies to all pay scale occupations in the UK. On this basis, the MAC excluded occupations that are on a pay scale from the ISL in their recent review.

The review considered 55 unique Standard Occupation Classification (SOC) codes from the SOL or recommended for inclusion. Of these, 43 unique SOC 2020 codes were reviewed after excluding pay scale occupations. The MAC has recommended 21 occupations for inclusion on the ISL, which represents 8% of job roles eligible for the Skilled Worker route by employment. This is a significant reduction. Currently, approximately 30% of job roles eligible for the sponsorship under the Skilled Worker route are detailed on the SOL.

Under the proposed changes, salary thresholds for non-Health & Care Worker visas will see significant increases. The general visa threshold, previously set at £26,200 will rise to £38,700, reflecting the 50th percentile of eligible occupations. Similarly, the "going rates", or now specifically, the occupation-specific thresholds, will transition from the 25th percentile to the 50th percentile of full-time salaries.

For roles which have been recommended for inclusion on the ISL, a salary threshold of either £30,960, or the occupation-specific threshold, whichever is higher, shall apply.

Some of the roles which the MAC have recommended for inclusion on the ISL, include:

3111 – Laboratory technicians

3217 – Pharmaceutical technicians

2111 – Chemical scientists

3411 – Artists

3414 – Dancers and choreographers

3414 – Musicians

3416 – Arts officers, producers and directors

3421 – Graphic designers

5215 – Welding trades – high integrity pipe welders

Where the median salary for roles on the SOL exceeds £38,700, the MAC have not recommended their inclusion on the ISL, as a salary reduction would provide no meaningful benefit. This includes most of the engineering and Information Technology roles previously included on the SOL. These roles will no longer benefit from a 20% reduction and the new general threshold and occupation specific threshold will need to be met from 04 April.

For now, the "new entrant" discount available for those aged 26 and under will continue. In its current form, this provides a 30% discount on the occupation-specific threshold and a 20% discount on the general salary threshold, the higher of which must be paid. Given that employers may need to take advantage of this discount more so than in the past, the MAC has encouraged the government to consider the impact of any rule changes to the new entrant discount.

In addition, the Creative Worker (CW) visa currently allows employers to waive a labour market test associated with this visa route, if the relevant occupation is on the SOL. The MAC have recommended the removal of this reference to the SOL and to remove the labour market test. The MAC has also recommended that the Home Office attach a minimum salary threshold to the CW visa, to ensure there is no economic advantage in using this visa to pay lower salaries compared to the Skilled Worker route for the same job.

It's important to note that these are recommendations set out by the MAC as commissioned by the government. The government will now consider its proposals to decide which of the recommendations it will take forward with the April 2024 rule changes. It is also expected that a full and major review of the ISL, including a more in-depth analysis of what it is intending to achieve, will take place later in 2024.

Employers should also be aware that there will be transitional arrangements in place for existing sponsored employees who will not be subject to the new general thresholds or occupational specific thresholds when extending or applying for settlement.

The full list of occupations recommended for inclusion in the ISL can be found in the MAC's report here.