The Migration Advisory Committee Annual Report 2024: key takeaways

Last week, the Migration Advisory Committee (MAC) published its Annual Report for 2024, shedding light on significant shifts in UK immigration policy under the Labour government elected in July. As an independent body, the MAC provides evidence-based advice to the government on migration-related issues. Its annual report informs Parliament and the public about its findings, analyses and recommendations.

Migration, skills policy and net migration trends

This first chapter investigates how work-related immigration aligns with the UK’s skills needs and analyses recent migration trends. Key findings include:

• Net migration reached high levels due to an influx of international students and non-EU workers, particularly in health and care sectors. However, significant policy changes, such as stricter assessments for Health and Care Worker visas and restrictions on dependants, have led to a decline in visa numbers since November 2023.
• Despite reductions, the health and care sector remains the main driver of work visa numbers. Recent rule changes may further reduce work-related immigration, though the full impact is yet to be seen.
• The MAC emphasises that addressing skill shortages isn’t one-size-fits-all. Shortages in some roles stem from low pay and poor working conditions, rather than a lack of skilled workers. While investing in domestic skills is important, it may not eliminate the need for migration entirely, as employers often prioritise the best match for roles, regardless of origin.

Fiscal impact of Skilled Worker visa migrants

For the first time, the MAC presents in-house estimates of the fiscal contributions of migrants on Skilled Worker visas compared to UK-born individuals.

• Skilled Worker visa migrants contributed significantly more to public finances in 2022/23, with an average net fiscal impact of £16,300 per individual, compared to £800 for UK-born adults. Migrant households under this visa category also outperformed UK households fiscally.
• The report highlights that these positive outcomes result from strict salary thresholds for Skilled Worker visas, ensuring migrants are high earners. However, the analysis is static, and the MAC plans to refine its methods to capture migrants’ lifetime fiscal contributions in future analyses.

Seasonal Worker visa scheme

The Seasonal Worker visa, critical for agriculture and poultry sectors, faces an uncertain future under the new government.

• The MAC proposed reforms to ensure fairness, flexibility and better worker rights, alongside encouraging automation to reduce reliance on migrant labour. While the previous government pledged the scheme’s continuation until 2029, the Labour government has only confirmed visa numbers for 2025.
• To maintain domestic food production and support rural economies, the MAC underscores the need for a robust Seasonal Worker Scheme in the short term, coupled with long-term investments in automation.

The MAC in 2025 and beyond

With Labour’s election, the MAC is set to play a more prominent role in shaping immigration policy. Here’s what’s next:

• Following recent income threshold hikes, the MAC is reviewing these requirements and will publish findings in June 2025. Public interest in this review has been unprecedented, with record submissions.
• The MAC is examining sectoral reliance on immigration and ways to encourage domestic recruitment. This marks the start of a series of reviews focusing on specific sectors.
• Going forward, the MAC will provide yearly insights into key sectors’ use of immigration, helping the government balance migration and domestic labour needs.

The MAC’s 2024 Annual Report underscores the complexity of balancing immigration policy with economic, fiscal and social considerations. While the government’s commitment to reducing net migration remains strong, the MAC’s findings highlight the critical role migrants play in filling skill gaps, supporting sectors and contributing to public finances.

For employers, these changes underscore the importance of understanding and complying with immigration rules. Ensuring your organisation is compliant is essential to navigating the evolving immigration landscape.

Stay tuned for updates on the MAC’s findings and recommendations as they shape the UK’s migration policies in the years ahead!

Updated: 23 December 2024

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on UK visa matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

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