Committee of Public Accounts
House of Commons 7 Millbank London SW1P 3JA
Tel 020 7219 3273 Fax 020 7219 2782 Email firstname.lastname@example.org Website www.parliament.uk/pac
20 April 2011
By email to email@example.com
Dear Mr Burgess
BORDER AGENCY: INTRA-COMPANY TRANSFERS UK AND ALLOWANCES
Thank you for your emails of 30 and 31 March 2011.
were concerned that workers coming to the
you noted, the Home Office has introduced from
my Committee’s hearing on 28 March, the Home Office told us that, in assessing
applications against the new minimum salary levels for Intra-Company Transfers,
it will only accept allowances for accommodation up to a maximum of 30 % of the
total salary package for those staying for over a year and 40 % for those
staying for 12 months or less, the higher rate reflecting the higher costs of
short term accommodation. This would
mean that the minimum salary a worker could receive after accommodation
allowances would be 60 % of £24,000 or £14,400.
It is possible for other allowances for the additional cost of living in
The National Minimum Wage for workers aged 21 or over is £5.93 per hour rising to £6.08 from October 2011. For an individual working for 40 hours a week, this would equate to a salary of £12,334 per annum, rising to £12,646 from October 2011. Where employers provide accommodation, they are allowed to deduct an accommodation off-set of up to £4.61 a day or £32.27 a week.
On the basis of these figures (the minimum salary level of £14,400 compared with the current National Minimum Wage of £12,334), the new arrangements should mean that the UK Border Agency does not grant visa applications for workers using the Intra-Company Transfer route earning less than the National Minimum Wage. In addition, the Home Office witnesses stated, during the Committee’s hearing, that the independent Migration Advisory Committee would be reviewing this route annually so that the Home Office will be able to take action if abuse of this route is identified.
I hope this is helpful and thank you for taking the trouble to write to the Committee.
Chair of the Committee