Policy paper

Professional Qualifications Bill factsheet: Unmet demand

Updated 3 November 2021

This policy paper was withdrawn on 21 February 2023

Find out about Professional Qualifications Act 2022.

This is one of a series of factsheets exploring themes in the Professional Qualifications (PQ) Bill.

The PQ Bill was introduced to Parliament in May 2021. It will revoke an interim system for the recognition of professional qualifications from overseas, derived from EU law, which often means preference is given to EEA and Swiss professionals. The PQ Bill enshrines the autonomy of regulators in determining whether individuals are fit to practise. Amongst other matters, it provides the ability to empower regulators to conclude recognition agreements with their overseas counterparts.

Summary

This factsheet explains what unmet demand for the services of a regulated profession is, the related measures in the PQ Bill, and the reasons for these measures. It does not constitute guidance on how to comply with measures in the PQ Bill once enacted.

What is the unmet demand condition?

The PQ Bill will support the UK government and devolved administrations to address unmet demand for the services of professions. Clause 1 of the PQ Bill includes a power to make regulations which facilitate individuals, who have experience from, or who have qualified, overseas being able to work in the UK.

Clause 2 of the PQ Bill is a restriction on the use of that power. It requires that the regulations must be necessary in order to enable demand to be met where there is insufficient provision of the services of a regulated profession and consumers have to wait longer or pay more for those services.

Why do we need the power to recognise individuals with qualifications gained overseas?

The UK currently has an interim system to recognise professional qualifications, which is derived from EU law. It gives treatment that is often preferential to holders of professional qualifications gained in the EEA and Switzerland. The preferential treatment is not reciprocated and was never meant to run indefinitely. The PQ Bill means these laws derived from the EU can be revoked, which will give UK regulators greater autonomy to determine the approach to recognise individuals with professional qualifications gained overseas, tailored to suit the needs of their profession.

The power in Clause 1 means the PQ Bill will help ensure demand is met for the services of regulated professions. Not all regulators in the UK currently have processes to assess individuals with professional qualifications gained overseas, or the legal ability to establish processes. The power in Clause 1 could be used if those regulators are responsible for professions with unmet demand.

The unmet demand condition ensures the power in Clause 1 can only be used where it helps the UK government and devolved administrations manage risks related to the demand for the services of regulated professions because of, for example, workforce shortages. Individuals with professional qualifications gained overseas can help in meeting demand for the services of a regulated profession in the UK, or part of the UK. Where there is unmet demand, the UK government or devolved administration will be able to make regulations to require specified regulators to establish processes to assess individuals with professional qualifications or experience gained overseas. This will benefit consumers of the services of the regulated profession in the UK.

Regulators will retain autonomy to determine whether individuals with professional qualifications or experience gained overseas meet UK standards and if they are fit to practise in the UK, or part of the UK.

The power to require regulators to assess individuals with overseas qualifications or experience, which can only be used if the unmet demand condition has been met, will complement wider measures to make sure the UK has the professionals it needs, including plans to develop domestic skills.

It provides the UK government and devolved administrations with an option to address issues related to the demand for the services of regulated professions through individuals with appropriate professional experience or qualifications from overseas, provided the unmet demand condition is met in relation to that profession. Individuals who (following a determination that they should be treated as if they hold the specified UK qualifications or experience under Clause 1) go on to be recognised as being able to practise in the UK will still be subject to relevant immigration rules as required.

What does it mean in practice?

The relevant UK government or devolved administration minister will be responsible for determining whether there is unmet demand. They will consider a range of information relevant to the profession, and will always consider, in line with Clause 2, whether establishing processes to assess individuals with professional qualifications or experience gained overseas can help address unmet demand which causes unreasonable delays and/or unreasonable charges.

Unmet demand will normally include consideration of the shortage occupation list, but that should not be the only indicator. The UK government or devolved administration minister might, for example, consider consumer demand, workforce statistics and modelling, and vacancy rates. Information that might be considered about unreasonable delays could include changes in service level needs and waiting times for the service of a regulated profession. Information that might be considered about unreasonable charges could include average costs and value for money of the services of a regulated profession.

It is anticipated that the UK government or devolved administration minister will normally consult with regulators in considering whether there is unmet demand for professions. They may also work with other organisations that might be able to provide evidence, for example businesses and service users, and seek public views where that could inform decision making. The relevant parliament in the UK will be able to scrutinise the proposed regulation before it is enacted in line with the relevant resolution procedure.

There will be no need for regulations where regulators already have adequate global routes to recognition. Those regulators will not have to change or introduce new practices. However, if, for example, a regulator’s routes are limited and there is unmet demand for services of a regulated profession, it may be necessary to make regulations under Clause 1 to require them to provide processes for assessing individuals with qualifications and experience obtained overseas.

Where regulations are made to address unmet demand, specified regulators will need to establish processes to determine whether individuals with professional qualifications or experience gained overseas have knowledge and skills to substantially the same standard as demonstrated by the relevant specified UK qualification or experience.

If the regulator determines that the applicant demonstrates substantially the same knowledge and skills to substantially the same standard as the UK qualification or experience, the applicant will be treated as if they had the specified UK qualification or experience for the purposes of determining whether they are entitled to practise a regulated profession in the UK. The regulator can conduct any checks or tests necessary to assess the applicant’s knowledge and skills.

If the regulator determines that the applicant has not demonstrated substantially the same knowledge and skills to substantially the same standard as the UK qualification or experience, then the individual will not be treated as if they held the specified UK qualification or experience. However, if this is the case, it may be possible to ‘make up’ the shortfall in knowledge or skills, with the individual being able to ‘top up’ their overseas qualifications, skills or experience with qualifications and experience recognised by the regulator, or with reference to other factors the regulator considers appropriate. Whether this is applicable will be for the regulator to determine, and to explain to the individual what they need to do to demonstrate having ‘made up’ the shortfall in order to be assessed as meeting the standard.

Separately to the process under Clause 1 regulations, the regulator has the right to assess an individual’s competence and whether they meet the relevant requirements to practise in the UK. The regulator will still be able to specify particular criteria which need to be met in order for the individual to practise in the UK, such as a clear criminal records check and indemnity or insurance expectations. The individual would also have to meet any other conditions for working in the UK, such as immigration or visa requirements; this is separate to an individual being treated as if they had the specified UK qualification or experience.

Example

Illustrative Scenario

A Secretary of State is concerned that there are insufficient members of a profession to meet the needs of those using that profession’s services in England. The Secretary of State therefore considers whether it would be necessary to use the power in Clause 1 to meet this unmet demand by ensuring the relevant regulator has processes in place to assess whether individuals with overseas qualifications or experience can practise in England.

• They consider the level of demand, delays and charges for the services of the profession. To do so they review the available evidence and engage with the regulator, relevant professional bodies and other stakeholders to ensure an accurate picture of potential demand is obtained.
• This engagement confirms that the number of existing professionals in England is limited, there are difficulties filling vacancies and there is no process for assessing individuals with professional qualifications or experience gained overseas. This satisfies the unmet demand condition in Clause 2, allowing the use of the power in Clause 1.
• The Secretary of State decides to use the power in Clause 1 of the PQ Bill to make regulations which ensure the relevant regulator has processes to assess individuals with qualifications or experience obtained overseas. The Secretary of State discusses the requirements with the regulator.
• These regulations will, where necessary, amend any primary or secondary legislation for the sector, and make clear what the regulator needs to do and when.
• The Secretary of State follows the appropriate resolution procedure in order to make the regulations. If they are amending primary legislation, the regulations are subject to the affirmative procedure. If they are not amending primary legislation, they follow the negative procedure.
• The regulations become law. They include a suitable commencement period, to allow the regulator to get ready.
• The regulator develops assessment processes, ready to operate them from when the regulations come into effect. From that point on, they are able to assess overseas applicants, and treat those who meet their criteria as if they had the specified UK qualifications or experience.

The overarching steps to take would be consistent for ministers of all UK nations, but the ways in which those steps are taken, for example how they engage with regulators, whether they run a full public consultation, and what time period they allow for bringing in the regulations, will be determined by the relevant minister in keeping with what is most appropriate for the profession they are considering.