The new points-based immigration system, due to be phased in from 2008, will reduce red tape for employers taking on immigrant workers, according to law firm DWF.

However, the firm warns it is also likely to restrict the supply of workers in sectors such as catering and cleaning which rely on cheap labour from overseas.

Under the new regime individuals will be graded into five categories. They range from tier one, consisting of highly skilled people such as scientists and entrepreneurs, to tier five, which includes youths and temporary workers. Points will be awarded to reflect aptitude, experience, age and also the level of need in a given sector.

Ansar Ali, solicitor with DWF, says: “There is a common misconception that the government’s aim is to reduce the number of immigrants.  This not the case. The system aims to attract the most talented workers into the UK, to tackle abuse and manage immigration more effectively.

 “Given the decreased number of options, employers and applicants alike will be able to identify more easily the category that will be suitable for them. Employers will have a better idea as to whether or not a candidate will qualify for entry because they can do a reasonably accurate assessment.”

However, Ali warns: “With applications being dealt with abroad, there could be logistical problems, for example with employers sending documentation or providing legal support for the individuals concerned.”