Professional Qualifications Act 2022

Policy background

The regulation of professions

3. A regulated profession is one in which there are restrictions to pursuing the activities or a subset of activities of the profession, such as for doctors, and/or legal restrictions for using a professional title, such as the use of "architect" in the UK.
4. Regulating professions by law is usually done to protect the public interest. Professions that are regulated in this way typically have requirements to practise in the UK, or part of the UK, which include licensing and certification. Licensing is where the individual cannot practise unless their qualification meets standards set out in legislation, such as a nurse. Certification can be by a public authority established for that purpose by legislation, such as the Architects Registration Board certifying architects.
5. Regulating professions is a critical element of UK public and private services. It ensures safety in service provision, provides consumer confidence, and helps to maintain professional standards. Qualification requirements for professionals help make sure that people have the appropriate professional knowledge, skills and experience to undertake certain activities. In the UK there are over 200 professions that are regulated by legislation by a network of more than 80 regulators, in addition to a range of other professions that are regulated voluntarily. 1
6. Recognition requirements make sure that holders of professional qualifications obtained in other jurisdictions have the professional knowledge, skills and experience required to practise in the UK. In many cases the professional title which goes with the professional recognition means that those individuals can responsibly practise professions which hold a higher degree of risk, for example an architect. Some regulatory bodies in the UK can recognise professional qualifications from overseas to grant access to that profession in the UK, or part of the UK. Overseas professionals play an important role in many professions in addressing current and future workforce needs.
7. The recognition of professional qualifications is often covered in international trade negotiations. In order to provide services overseas, many UK services providers need their qualifications to be recognised in the host country. Qualification recognition, or a lack of it, can be an enabler or a constraint on professionals qualified in one country bidding for and winning contracts to provide services in another. In most FTAs the UK has signed so far, the professional qualifications provisions – and the implementation of them – will not place new requirements on regulators. They create provisions which regulators can utilise if they choose to do so. However, some FTAs, such as the UK’s recent agreement with the EEA EFTA states 2 , can require the Government to place obligations on regulators.
8. While qualification recognition is important in addressing workforce needs and supporting trade, it also plays a key role in ensuring that the UK is meeting its commitments to uphold the Common Travel Area (CTA). The CTA is a long-standing political arrangement between the UK and Ireland which pre-dates both the UK and Ireland’s membership of the EU. Under the CTA, UK and Irish citizens can move freely and reside in either jurisdiction and enjoy associated rights and privileges, including the right to work.
9. A Memorandum of Understanding (MoU) concerning the CTA was signed by the UK and Irish governments in 2019, reinforcing both parties’ existing commitments to the CTA as the UK prepared for exiting the EU. The MoU states that recognition of professional qualifications ‘is an essential facilitator of the right to work’ and therefore, both the UK and Irish governments have agreed to ensure there are adequate routes to recognition for qualified professionals across the UK and Ireland. These routes to recognition will be established either through UK and Irish regulators putting in place routes for their profession on a unilateral basis, or through recognition arrangements either agreed between UK and Irish regulators and professional bodies or using the UK-EU Trade and Cooperation Agreement mutual recognition agreement framework.

EU Exit and legislative context for the Act

10. On 31 January 2020, the UK left the European Union and the Withdrawal Agreement agreed with the EU entered into force. The Withdrawal Agreement provided for a transition period which ended at 11pm on 31 December 2020.
11. For the recognition of professional qualifications, the EU Directive 2005/36/EC on the mutual recognition of professional qualifications ("MRPQ Directive") provided a framework for the recognition of professional qualifications across the EU. The MRPQ Directive enabled European Economic Area (EEA) and Swiss nationals to have their professional qualifications recognised in an EEA State or Switzerland, other than the state in which the qualification was obtained.
12. The European Union (Recognition of Professional Qualifications) Regulations 2015 ("2015 Regulations") implement part of the MRPQ Directive. As part of preparing the statute book for the UK’s exit from the EU, the Government made the Recognition of Professional Qualifications (Amendment etc.) (EU Exit) Regulations 2019 ("2019 Regulations") which provide for an interim system of recognition of professional qualifications from the EEA and Switzerland and came into force at the end of the transition period. The Professional Qualifications and Services (Amendments and Miscellaneous Provisions) (EU Exit) Regulations in 2020 amended the 2019 Regulations, primarily to implement transitional arrangements that the UK agreed with the EU, EEA EFTA states, and Switzerland.
13. The Act is part of the Government’s plans to exercise the UK’s new regulatory flexibility, as outlined in the HM Treasury report on the Autumn Budget and Spending Review 2021 3 . To make way for the new approach to the recognition of professional qualifications set out in the Act, the Act revokes the 2015 Regulations and contains powers to revoke other EU-derived legislation on the recognition of professional qualifications, which was retained following the EU exit Transition Period to provide continuity in services and surety for business. This includes legislation where preference is given to certain professional qualifications issued in the EEA and Switzerland.
14. The Government issued a written Call for Evidence in August 2020 that sought views from stakeholders on the recognition of professional qualifications and the regulation of professions. The Call for Evidence was part of a wider programme of work considering recognition of professional qualifications; however, the insights from it have also informed Bill planning. The summary of responses to the Call for Evidence was published on 12 May 2021.