Intense lobbying by Britain's education sector and others has resulted in the Tier 1 Post Study Work immigration scheme continuing for another year. Tier 1 PSW allows non-EU students of UK educational institutions to live and work in the UK after graduation for up to two years.
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UK Immigration News
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A committee of MPs has urged immigration minister Damian Green not to move forward with the introduction of stricter rules for student immigration into the UK. The committee has warned that more stringent student immigration rules would be "potentially calamitous" to an industry worth £40 billion annually.
The UK has released more information concerning the new 'Exceptional Talent' visa which will replace Tier 1 (General) of Britain's points based immigration system. The visa will be capped at 1,000 per year and is aimed at a very small number of top highly skilled immigrants. After 5 April 2011 it will be very difficult to gain entry to the UK as an independent skilled immigrant.
The UK has announced new visa rules which would allow wealthy foreign-born investors and entrepreneurs to gain permanent residence (properly known as indefinite leave to remain) in the UK much more quickly than normal.
Several economists have said that the UK's immigration cap will hurt economic growth in the country and harm Britain's continued recovery from the global financial meltdown of 2008.
"Limits on skilled migration have a significantly negative effect on growth," said Jonathan Portes of the National Institute for Economic and Social Research (NIESR).
At the NIESR's pre-Budget conference in Westminster, former government economist Vicky Pryce agreed with Portes.
A report by the National Audit Office (NAO) finds that the UK's points based system is not delivering its full "value for money potential". The study also found that, while adaptable, the system needs to improve customer service and its management information processes.
"Implementing the radical changes planned for the System in 2011-12 will enable the Agency to reconsider its priorities and improve customer service and its assurance over control systems," said Amyas Morse, head of NAO.