Immigration Barristers' Blog

On 15 March 2012, a written ministerial statement was laid in Parliament outlining a number of changes to the Immigration Rules.

From 6 April 2012, the Tier 1 (Post-Study Work) category will close to new applicants.  However, it will now be easier for existing Tier 1 (Post-Study Work) migrants to extend their stay in the United Kingdom by switching into the Tier 1 (Entrepreneur) category.

Whereas most individuals who apply to enter the UK or switch from another category into the Tier 1 (Entrepreneur) category are, with certain limited exceptions, required to demonstrate that they have access to at least £200,000, the funds requirement will be substantially reduced for post-study workers. 

From 6 April 2012, any individual who is currently in the UK with leave to remain as a Tier 1 (Post-Study Work) migrant and who wishes to switch into the Tier 1 (Entrepreneur) category will now only need to demonstrate that they have access to at least £50,000. 

Post-study workers will be able to rely on money that is held in their own account or in someone else’s account, provided that the third-party confirms that the funds are available to the post-study worker for investment in a UK business.  In either case, the money will need to be held in a regulated financial institution such as a bank or building society and be capable of being spent in the UK

Two post-study workers will be able to apply together as an ‘entrepreneurial team’, provided that they both have equal access to the investment funds.

However, applicants should be aware of one potential restriction.  Post-study workers switching into the Tier 1 (Entrepreneur) category will need to have already registered as self-employed or as the director of a business, and be engaged in business activity, other than in the work necessary to administer their business, in an occupation at National Qualifications Framework level 4, at the date of their application for an extension of stay.

In a recent statement of intent, the government has announced more details of its planned changes to Tier 1 (Post Study Work) of the points-based system.

Tier 1 (Post Study Work) will close to new applicants on 5 April 2012. In its place, from 6 April 2012, Tier 2 (General) will be open to recent graduates with a Bachelor’s or Master’s degree, PhD, or a PGCE or PGDE, from a UK recognised or listed body.  As per the normal Tier 2 requirements, applicants must have an offer of a skilled job from a licensed sponsor and be paid at least £20,000 or the minimum appropriate rate set out in the relevant Code of Practice. However, the employer will not have to complete a resident labour market test and the jobs will not be subject to the annual limit on Tier 2 numbers (i.e. the Certificates of Sponsorship will be in the Unrestricted category).

Migrants using this route will be able to sponsor new dependants, on the same terms as other Tier 2 migrants. They may continue to sponsor any dependants whom they sponsored as a Tier 4 migrant.

Tier 4 Dependants will continue to be able to switch into Tier 2 employment in their own right, but will be subject to the Tier 2 limit. Tier 4 migrants will be able to switch into Tier 2, as described above, once they have been awarded their qualification. In-country switching from Tier 4 to Tier 2 will not be permitted for those who have not completed their studies, except for PhD students who, as now, must have completed at least 12 months of study.

A migrant who wishes to switch to Tier 2 from Tier 4 may start work as a student with the Tier 2 employer if their Tier 4 leave is still valid and allows them to work. The employers should however not offer a permanent contract until the Tier 2 application is approved. If a migrant wishes to undertake a period of professional training following a course of study in order to obtain a professional qualification, this can be done by switching into Tier 2. If this is not possible, the relevant sector body may seek to establish a dedicated scheme within Tier 5 (Government Authorised Exchange) to allow further training prior to return overseas. It is not possible to switch from Tier 5 to Tier 2, but the governments intends to make provision for switching from Tier 4 to Tier 5 (Government Authorised Exchange) to allow this professional training to take place.

Further details of the replacement for the Tier 1 (Post Study Work) category will be available once the changes to the relevant Immigration Rules have been laid on 15 March 2012.