Tier 2 Skilled Workers Cap Removal
IT Contractors will be Hit by the knock on effect from Tier 2 Skilled Workers Cap Removal for NHS workers.
The Government are going to announce that they will completely remove doctors and nurses from the skills shortage list.
Currently only 20,700 skilled workers from outside the UK can get Tier 2 skills visas a year.
Currently they are turning down visas for doctors at the rate of 6,000 a year.
Lots of applications for skilled nurses from outside the UK are being turned down too.
Recruiting Doctors from Outside the EU
Now the NHS will be able to recruit as many doctors and nurses as they need from outside the EU.
This will have a major knock-on effect for UK based locum doctors and agency nurses.
They have been the usual port of call when the NHS has skills shortages.
Now they will be able to hire as many doctors and nurses from abroad as they want.
The Government will be able to make big savings in the NHS.
However, this will be mainly coming from the pockets of UK based locums and agency nurses who pay their taxes in the UK.
IT Contractors and Tier 2 Skilled Visas
So, how does this affect UK based IT Contractors I hear you ask.
The reason is that the skills cap will not be decreased when doctors and nurses are removed from the skills shortage list.
It will remain at 20,700.
According to the Government this will free up some space for IT workers and engineers etc.
Tier 2 Skilled Worker Visa Applications
Traditionally, most Tier 2 skilled worker visa applications have been for IT workers. Most of these have been for Indian IT workers.
We know that one third of all Tier 2 visa applications have been for the NHS.
You can bet that most of the others would have been for IT workers.
Now the supply of IT workers to the UK will increase.
Laws of Supply and Demand
According to the economic laws of Supply and Demand, if you increase the supply of a commodity without the demand increasing, then the price of that commodity will fall.
In this case it is IT Contractor rates.
When companies are short of IT skills they traditionally took contractors.
Now they will have the opportunity to import those skills from outside the EU.
They will be able to obtain these at a fraction of the cost of UK based IT Contractors.
So, who will be next to come off the Tier 2 Skills Cap?
The big consultancies, whose ear the Government have, will already be lobbying for IT workers to be removed form it.
Any Tier 2 Skilled Workers Cap Removal for IT Contractors would be disastrous for contractors in the UK.
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