Shortage of Security Cleared (SC) candidates caused by a ‘perfect storm’ of events so…
Since 2018-19, the United Kingdom Security Vetting (UKSV) service - a business area of the Cabinet Office - has received an average of 164,700 Counter Terrorist Check (CTC) or SC and 17,900 DV (Developed Vetting) clearances per year, and has a KPI of completing 85% of SC (and CTC) clearances in 25 days.1
1. NAO: Investigation into the performance of UKSV: https://www.nao.org.uk/wp-content/uploads/2023/01/investigation-into-the-performance-of-uk-security-vetting.pdf
Clearances received by the United Kingdom Security Vetting service per year since 2018-19
CTC or SC clearances
DV clearances
KPI to completion rate of SC (and CTC) clearances in 25 days
According to a National Audit Office (NAO) report, “the performance of UKSV deteriorated significantly in 2021-22 as demand for vetting increased with the easing of COVID-19 restrictions”. In relation to SC/CTC, outstanding clearances stood at a high of 27,900 in November 2022, which was 16,600 higher than would have been the case if the 25-day target was being met.
And nearly one-third of DV clearances were taking more than 180 days to process - almost double UKSV’s 95-day target – creating backlogs. “For customers”, NAO notes, “this means that nearly one-third (30%) of DV clearances will take more than half a year to process; delays mean individuals cannot fully take up their new positions. By comparison, during 2019-20 less than 4% of DV cases took more than 180 days”.
Cases completed within target time (%)
Source: NAO: Investigation into the performance of UK Security Vetting, January 2023
The NAO report concludes that UKSV’s performance has been affected by a range of issues:
- Customer demand rose sharply in 2021-22
- UKSV was under-resourced to meet customer demand forecasts
- The IT system UKSV uses to process cases is old and unstable, with regular outages that slow down and stop the clearance process for extended periods
Beyond the COVID-related reasons identified by the NAO for the spike in demand for SC/DV clearance, there are several other likely contributory causes. Moreover, these challenges are creating ongoing issues for employers seeking SC cleared personnel.
Brexit (January 2021):
Although the opportunity for companies recruiting SC/DV Cleared resource to hire from the EU has always had some restrictions, the flow of resource from the EU securing jobs across industries was significant prior to Brexit.
In the year to Sept 2023, just 24,800 (7%) work-related visas were granted to main applicants from EEA and Swiss nationals
All required a work sponsor.
In addition, 4,800 work-related visas were granted to dependents of EEA/Swiss nationals – 2% of all dependent visas granted.
Source: Matchtech analysis of Home Office data
From 1 January 2021, when the UK’s transition out of the EU was complete, access to EU talent became significantly more challenging. This reduced both the number of employers, and candidates alike, prepared to go through the new legislative processes – and, in the year to September 2023, just 7% of main applicant visas (24,800) and 2% of dependent granted to all-country nationals, were secured by those from the EEA/Swiss nationals (the countries facing new immigration rules).
With the added complexity (and costs) associated with sourcing from Europe, there has been increased competition for UK resource who can obtain SC Clearance.
In the year to Sept 2023, just 24.8k (7%) work-related visas were granted to main applicants from EEA and Swiss nationals
All required a work sponsor
In addition, 4.8k work-related visas were granted to dependents of EEA / Swiss nationals – 2% of all dependent visas granted
Source: Matchtech analysis of Home Office data
From 1 January 2021, when the UK’s transition out of the EU was complete, access to EU talent became significantly more challenging. This reduced both the number of employers, and candidates alike, prepared to go through the new legislative processes – and, in the year to September 2023, just 7% of main applicant visas (24.8k) and 2% of dependent granted to all-country nationals were secured by those from the EEA /Swiss nationals (the countries facing new immigration rules).
With the added complexity (and costs) associated with sourcing from Europe, there has been increased competition for UK resource who can obtain SC Clearance.
The change to Off-Payroll Working (IR35) protocols in the private sector (April 2021)
The Off-Payroll (IR35) Working regulations determine the employment status of contractors.
Around the time of the implementation of protocol changes (April 2021) to the regulations for private sector employers, there was a notable spike in the number of people moving from employment to retirement. And across the whole of 2021, the number of retirees was 45% (232,000) higher than in 2019.
This included tens of thousands of contractors who chose that time to leave the workforce – leaving contingent talent pools in many skilled professions depleted.
Employment to retirement flows (000s)
Source: Matchtech analysis of ONS data
Remote and hybrid working
Beyond the demand increase effect on SC clearance identified by the NAO, another legacy of COVID remains with us today – a candidate desire to not work exclusively on-premise, driven by what they believe to be the pandemic-driven proof of concept.
The opportunity for people to work remotely (wholly or partially via hybrid working) has increased significantly and remains high - especially in technical disciplines.
Across November 2023, a combined 27% of the UK workforce – across all industries - continued to work via a Hybrid (19%) or work-from-home model (8%).
This swelled to 77% of workers in Information & Communication (77%) and 57% in Professional, Scientific & Technical industries.
Hybrid working in November 2023
27% All industries workforce
19% Hybrid
8% Working from home
77% Information & Communication
57% Science & Technical
Source: Matchtech analysis of ONS data
Remote and hybrid working - November 2023
Source: Matchtech analysis of ONS data
For many organisations requiring SC cleared resource, with either partial or a full-time requirement to be on site due to security restrictions, this poses ongoing challenges in securing resource where flexibility to work from home is a key motivator.
Our recommendation
With a number of factors combining to reduce the overall talent pool with availability and interest in working in sectors that require SC clearance – and continuing delays in the processing –, the need for strong candidate relationships (direct or accessed via third parties who nurture these talent communities) have heightened in importance.