Written evidence submitted by Andromeda-Sim Ltd (RTS0514)
 

Company Overview

Andromeda-Sim Ltd is a UK-based aviation simulation technology company developing advanced software systems for training academies and aircraft maintenance organisations. Our products are used to enhance safety, compliance, and training accuracy in flight operations.

We are a knowledge-intensive company that depends heavily on specialist international expertise—including simulation engineers, data scientists, software developers, and systems integration professionals—whose skills are scarce in the domestic labour market.

Over the past two years, our team has contributed to major innovation projects with international partners and aviation authorities. Our continued growth and R&D capacity are directly tied to the UK’s ability to attract and retain high-skilled global professionals under stable and predictable immigration and settlement frameworks.

1. Evidence on the Effect of Pathways to Settlement

Settlement pathways have a measurable effect on both employer planning and worker retention. Skilled migration decisions in the aviation technology sector are not short-term—most projects span multiple years, involving complex regulatory testing cycles.

When engineers and software specialists perceive the UK’s settlement route as uncertain or excessively long, they:

• Choose competing destinations (e.g., Germany, the Netherlands, or Canada) with clearer permanent residency frameworks;
• Avoid long-term relocation, opting instead for remote contracting;
• Refrain from property purchase or local investment, limiting regional economic contribution.

Conversely, transparent and achievable settlement timelines incentivise commitment, continuity, and local integration. Our experience shows that a stable five-year route encourages employees to stay long term, improving project delivery and reducing staff turnover.

2. Likely Impact of Longer Settlement Routes on Employers and Recruitment

Operational Continuity

In high-technology sectors like aviation simulation, staff turnover is not easily absorbed. Each project demands cumulative expertise across simulation physics, embedded systems, and aviation compliance. Losing one specialist mid-cycle can delay delivery by six months or more, as replacements require lengthy training and security clearances.

Recruitment and Reputation

Longer settlement routes or uncertainty over future eligibility undermine the UK’s global reputation as a destination for skilled professionals.
Several of our current engineers have already received offers from EU-based employers who can offer permanent residence within two to three years. The UK risks losing precisely the kind of high-value talent it seeks to attract.

Financial Impact

Replacing one senior engineer can cost £25,000–£30,000 in recruitment, visa, and onboarding expenses. For SMEs like ours, frequent turnover caused by immigration uncertainty can make expansion unsustainable.

3. Likely Impact on Migrant Households

Financial and Economic

• Families are required to pay repeated visa renewal fees and Immigration Health Surcharges—averaging £15,000 per household over a decade—despite contributing full taxes and National Insurance.
• Several of our employees have purchased homes in the UK, assuming the existing five-year settlement framework. Extending this period would create serious financial vulnerability, affecting mortgages, schooling, and long-term financial planning.

Personal and Social

• Constant immigration uncertainty causes mental stress and disrupts family stability.
• Children born or raised in the UK face possible displacement if parents cannot secure settlement.
• This anxiety inevitably affects workplace performance, morale, and innovation capacity.

These are not abstract risks—they are real human and economic consequences already being felt across our workforce.

4. Effect of Settlement Changes on Integration

Integration flourishes where there is security of belonging.
Shorter and predictable settlement routes allow professionals and their families to:

• Build social networks;
• Participate in community and educational initiatives;
• Invest confidently in property and local businesses.

If routes are lengthened or conditions tightened, skilled workers are more likely to treat the UK as a temporary posting, weakening community cohesion and reducing the long-term social dividends of skilled migration.

5. International Evidence

Countries with leading technology and aviation sectors recognise the link between talent retention and clear settlement routes:

• Germany’s EU Blue Card holders can gain permanent residence in 21–33 months based on employment and language skills.
• Canada’s Express Entry system grants permanent residency in under three years for skilled professionals with continuous tax contribution.
• Australia’s Employer Nomination Scheme provides permanent status after two to three years of skilled work.

The UK’s competitiveness in technology and aviation is already under pressure. Lengthening settlement routes would place us further behind in the race for global expertise.

6. Designing an “Earned Settlement” Framework

If the Government intends to introduce contribution-based pathways, they should be objective, transparent, and reward measurable performance, rather than extending uncertainty.

Defining Long-Term Contribution

We propose defining contribution through a dual-weighted model:

This approach ensures fairness, acknowledging both economic productivity and civic participation.

7. Recommended Exemptions

To maintain business continuity and fairness, exemptions should apply to:

• Skilled workers already in the UK under the existing five-year route;
• STEM and technology professionals in shortage occupations or R&D roles;
• Families with UK-born children or those who have already invested in UK housing;
• Workers in critical infrastructure sectors (aviation, digital, healthcare).

Excluding these groups would unfairly penalise those who have already demonstrated sustained commitment and contribution.

8. Lessons from Other Countries

• Germany integrates settlement eligibility with social integration (language, tax compliance) but rewards contribution with early access.
• Canada links permanent residency directly to employment history, ensuring that employers retain motivated workers without administrative churn.
• Singapore’s Employment Pass system provides long-term residence through contribution scoring, balancing labour needs with national interest.

Each model recognises that settlement certainty underpins productivity—not the reverse.

Conclusion

Andromeda-Sim’s growth has been built on global expertise anchored in the UK. Our engineers, designers, and analysts contribute directly to:

• UK tax revenues and export income;
• High-skill job creation for local graduates;
• Safety and innovation in a globally regulated aviation environment.

Yet we are now witnessing early signs of talent erosion due to settlement uncertainty.
Some staff have already resigned, while others—who have invested in UK homes and communities—are openly exploring relocation to Europe or Canada because they no longer trust the UK immigration trajectory.

For advanced industries like ours, people are the infrastructure.
Extending or complicating settlement routes risks dismantling that foundation—reducing innovation capacity, export competitiveness, and long-term UK leadership in technology.

We therefore urge policymakers to:

1. Maintain the current five-year settlement route for Skilled Workers already lawfully resident;
2. Adopt a transparent, contribution-based earned settlement framework for future entrants;
3. Avoid retrospective changes that penalise existing residents and destabilise employers.

A balanced approach—rewarding contribution, preserving stability, and maintaining fairness—will ensure that the UK continues to attract and retain the world-class talent that drives its economy forward.

Oct 2025