Changes to the work permit system to make it easier for employers to recruit skilled staff from abroad and fill vacancies have been announced by the Government.

The steps were disclosed by Margaret Hodge, Minister for Employment and Equal Opportunities.

The changes are aimed particularly at filling staff shortages in teaching and IT.

They will take effect from next month and include revising skills thresholds so graduates with skills in short supply no longer need to have two years' relevant work experience.

The maximum permit period will be increased from four to five years and those already holding a permit will be allowed to take on extra part-time work.

A pilot scheme to allow multi-national employers to issue their own permits for employees transferring to the company from abroad will also start.

Companies already signed up to the scheme include Rolls-Royce, Ernst and Young and Sony.

Mrs Hodge said: "We want to run an efficient work permit system which meets the needs of British business in the global economy, yet protects opportunities in the domestic market.

"The new system will help us to compete internationally for graduates with high-level skills, which is particularly important if we are to meet short-term skill shortages."