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The UK’s New Points‑Based Immigration System: Ideological Shift and Practical Concerns

The UK formally left the European Union on 31 January 2020 and is now in the transition period until 23:00 on 31 December 2020. During this time, EU law continues to apply, including the free movement of people. From 1 January 2021, however, the UK will introduce a new skills‑based immigration system that will treat EU and non‑EU migrants alike. This article examines the ideological shift behind the new policy and evaluates its potential economic and social consequences.

The transition period

Under the European Union (Withdrawal Agreement) Act 2020, amendments to the European Union Withdrawal Act 2018 extend the effect of the European Communities Act 1972 until 31 December 2020.

As a result, the UK remains subject to EU free movement rules until the end of the transition period.

From 1 January 2021, the Conservative Government will implement a strict points‑based immigration system, described as “taking back control of our borders” and “fulfilling the will of the British people.” This reflects a central theme of the 2016 referendum campaign: dissatisfaction with EU control over immigration quotas and a desire for national autonomy.

A nationalistic and meritocratic model

The new system is explicitly skills‑focused. Migrants must earn a salary of at least £20,480 to be eligible for entry. In most cases, applicants must earn £25,600 or more, although individuals with specific skills may offset lower earnings. Applicants must also achieve a total of 70 points.

Tradeable points

Characteristics: Tradeable Points

Offer of job by approved sponsor: No 20

Job at appropriate skill level: No 20

Speaks English at required level: No 10

Salary of £20,480 (minimum) – £23,039: Yes 0

Salary of £23,040 – £25,599: Yes 10

Salary of £25,600 or above: Yes 20

Job in a shortage occupation (as designated by the MAC): Yes 20

Education qualification: PhD in subject relevant to the job: Yes 10

Education qualification: PhD in a STEM subject relevant to the job: Yes 20

The salary thresholds and points requirements aim to ensure that only higher‑skilled workers who will benefit the UK economy are admitted.

A shift in ideology

Membership of the EU required adherence to the four freedoms of the Single Market: free movement of goods, capital, persons and services. These freedoms reflected a more integrated and globalised approach to economic and social policy.

Brexit and the new immigration system represent a reversal of this direction. The policy prioritises independent national prosperity and seeks to recruit only those with the highest skills.

Sajid Javid stated that the system will focus on “those with the skills we need, who bring the most benefit to the United Kingdom.” Theresa May emphasised the need to “train our own young people,” addressing concerns that free movement allowed migrants to “take our jobs.”

However, these aims raise questions. Even if training young people were efficient and well‑funded, the benefits would not materialise quickly. In the short term, the UK may face labour shortages and reduced economic productivity.

Social consequences

Under previous rules, the UK offered opportunities to migrants from countries facing economic hardship or limited prospects, including Eastern Europe, Greece during the financial crisis and Spain with high youth unemployment. High skill thresholds will prevent many such individuals from entering the UK. Approximately 70% of current European workers in the UK would not meet the new requirements.

The policy therefore signals a withdrawal from providing international social support.

The salary requirement of £25,600, reduced from the initial £30,000 following recommendations from the Migration Advisory Committee, is intended to reduce low‑skilled migration.

However, this will create shortages in essential sectors, particularly social care. The care system already suffers from low staffing levels. Reduced access to migrant workers will likely decrease the quality of care, reduce the number of care homes or increase privatisation, limiting access for older people.

Criticism and concerns

The policy has faced widespread criticism.

Nicola Sturgeon described it as “devastating” for Scotland’s economy, particularly for sectors such as health care that rely on attracting workers. The Institute for Economic Affairs warned of “unintended consequences,” noting that businesses and the wider economy require workers with a range of skills. A high‑skill threshold will create shortages in lower‑skilled roles that are fundamental to business operations.

Given these concerns, scepticism about the policy’s success is understandable. However, the system can be seen as an attempt to deliver Brexit and address the immigration concerns that motivated many Leave voters.

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