Immigration and Nationality (Fees) (Amendment) Order 2025
(1 day, 23 hours ago)
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Lord Hanson of Flint
That the Grand Committee do consider the Immigration and Nationality (Fees) (Amendment) Order 2025.
Relevant document: 16th Report from the Secondary Legislation Scrutiny Committee
The Minister of State, Home Office (Lord Hanson of Flint) (Lab)
My Lords, this fees order sets out the immigration and nationality functions for which a fee is to be charged and the maximum amount that can be charged in relation to each of those functions. Within the order, we propose a number of changes that will facilitate major government policy.
Fees charged by the Home Office for immigration and nationality applications are an essential part of the department’s funding settlement and help to support the sustainable operation of the migration and borders system while reducing reliance on taxpayer funding. It is important, therefore, that we have sufficient flexibility within the department’s legislation to set fees at levels that support this funding approach. This amendment order will play an essential role in delivering this flexibility while also helping to ensure that our legislation remains current and reflects changes in the wider migration and borders system.
I will go into more detail on each of the changes that we propose, but, to summarise, this order covers a number of areas. First, it will increase the fee maxima that can be set for the electronic travel authorisation—ETA—for sponsorship on work routes, for naturalisation as a British citizen or British Overseas Territory citizen, and for certain nationality services. It will also remove the fee provision related to the electronic visa waiver and make consequential amendments to the Immigration and Nationality (Fees) Regulations 2018 to remove the fee.
I turn to the changes we propose to the fee maximas. The figures set out in this order act as a ceiling within which the Home Office is able to make changes to fee levels by laying separate legislation and seeking agreement across government. It is sensible to keep these maximas under review, to ensure that the order continues to support our fees and funding objectives. The changes we propose today, which are accompanied by an economic impact assessment, will provide the necessary flexibility to make changes to fee levels where they are required to ensure that the sustainability of the migration and borders system is maintained.
I emphasise that the actual fee levels that are charged to those seeking to enter or remain in the UK are not changing in this order. Any changes to the fee levels will be made through separate legislation and will also be accompanied by full economic impact assessments. However, in laying this order, we have sought to provide some clarity to Parliament and the public about our intention to increase certain fees when parliamentary time allows and when further orders are brought forward. We will, first, increase the fee maxima applying to an application for an electronic travel authorisation—ETA—from £15 to £16, in order to facilitate a subsequent increase in the chargeable fee from £10 to £16. The fee maxima that applies to certificates of sponsorship, which are assigned by employers to employees who need a visa to work and stay in the United Kingdom, will increase from £300 to £525. This maxima increase will also apply to the successor sponsor a worker process, which is being rolled out on a phased basis currently. In both cases, the chargeable fee for the main category of application will increase from £239 to £525.
We will also increase from £1,500 to £1,605 the fee maximum that applies to adult applications made to naturalise as a British citizen or a British Overseas Territory citizen. This will facilitate a subsequent increase in the chargeable fee for applications to naturalise a British citizen to the new maximum level. We will also increase the fee maxima that apply to various nationality-related services, which include an amendment to the certificate of registration or naturalisation and the supply of a certified copy of a document granted under current or former nationality Acts or, indeed, the supply of any of the documents specified in Table 7 in this fees order. All these will increase from £400 to £428. The review of a decision related to immigration and nationality will increase from £450 to £482, and the issuance of a document confirming that a person has the right of abode in the United Kingdom will be increased from £550 to £589.
To be clear to the Grand Committee, although we have announced our intention to increase fee levels later this year, they will not be increased until we lay separate legislation, the immigration and nationality fees regulation, which will be subject to agreement and approval by Parliament.
Finally, we will remove from this order the chargeable function from an electronic visa waiver and make the necessary amendment to the Immigration and Nationality Fees Regulations to remove the fee. This change is being made because the electronic fee visa waiver has been replaced by the ETA for nationals of Qatar from October 2023 and for nationals of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates from February 2024. The changes we will be making through this order are vital to provide flexibility to amend fee levels. They will subsequently have to have the approval of Parliament to ensure that the system is sustainably funded. I emphasise once again, there is no fee increase today through this order, but I move the principle so that Parliament, the public and those who want to access those services know where they stand for a future planning purpose.
Lord Rowlands (Lab)
My Lords, it was my pleasure for the past three years to have served on the Secondary Legislation Scrutiny Committee. It has reported on a whole series of immigration and nationality fees, and it is in that context that I wish to raise a particular, serious issue that has arisen. That committee has never questioned the need or requirement for such fees, or that they should be appropriate and should match the costs. However, an extraordinary situation has arisen in the context of some of the fees that have been charged by the Home Office. That is, a whole series of fees have been charged unlawfully, in that it proved to be the case, after years of these fees being charged, that there is no statutory basis for doing so.
On top of that, worse is to follow. In fact, VAT has also in some cases been inappropriately served on some of these fees. The Secondary Legislation Scrutiny Committee has drawn the special attention of the House to this extraordinary situation. The committee recommended that those fees that were considered unlawful should be suspended until such time as the matter had been resolved. The department refused to do so and, in fact, is continuing unlawfully to charge fees in some areas, despite the recommendations of the Secondary Legislation Scrutiny Committee.
I seek to draw attention to this extraordinary situation. I have been around for a very long time and have never come across the situation where a major government department has behaved in this way. In a three-year period, it collected £50 million without statutory authority. That is an astonishing situation. Therefore, we on the committee have been pressing—indeed, everybody should press—the department to resolve this legislative shambles that has occurred.
It appears that the possible resolution for this situation is that it may require retrospective legislation to sort it out. I therefore ask my noble friend the Minister, first, whether the department now agrees that it is necessary for such retrospective legislation to resolve this legislative fiasco? Secondly, if so, when will that be introduced? He cannot drag his feet any longer. This unlawful imposition of fees has been going on for a long time. I therefore ask the Minister to assure us not only that there will be such legislation but that it will be brought in promptly, so that the intolerable situation that has arisen can be resolved.
Lord Foster of Bath (LD)
My Lords, I am fascinated to follow the noble Lord, Lord Rowlands, with the information that he has provided to us today; I very much look forward to the Minister’s response to the points that he made. I shall concentrate on only one very small bit of the statutory instrument before us: the bit that relates to the electronic travel authorisation, or ETA.
I serve as the chair of your Lordships’ Justice and Home Affairs Select Committee. We have on a number of occasions looked in a great deal of detail at the planned introduction, and now the actual introduction, of the ETA. It is an authorisation requirement for anybody who does not have a visa and who wants to come here for a short stay from non-visa countries. We welcome the pushing out of the boundaries and the borders that this measure involves, giving us the opportunity to collect information about visitors to our country before they have even arrived, but we have expressed a number of concerns and made a number of recommendations to the Government about it. That is why I am focusing on this one particular issue.
What is proposed here is an increase in the maximum fee from £15 to £16, which of course seems incredibly limited; it is a very small increase. However, as the Minister rightly pointed out, the Government have made it absolutely clear that it is their firm intention that, as soon as time allows, another statutory instrument will come along; this one will increase the current fee from £10, as it is now, to a new maximum of £16. Obviously, that is a very significant 160% increase that we are going to see.
Bear in mind that, when this measure was introduced, we heard a number of things from the previous Government, who, in fairness, introduced it. In a Written Ministerial Statement of 6 June 2023, the then Minister of State for Immigration, Robert Jenrick, said:
“This fee level is competitive with that of equivalent systems run by other countries”,—[Official Report, Commons, 6/6/23; col. 821WS.]
so the £10 is a competitively charged amount. Of course, he was absolutely right. Currently, in Israel, it is £5.61; in South Korea, it is £5.53; in New Zealand, it is £7.68; and in the Seychelles, it is £8.33. In Australia, it is free unless you pay roughly £10 to use the smartphone application. All the EU countries are about to introduce their own similar scheme, and they have already announced that that will cost €7. So, clearly, £10 is of an order of magnitude but is actually slightly higher. By the time we get to £16, it is going to be significantly higher.
I acknowledge there is one aberration in that: the United States. However, if we look back at its history, it had a very much lower figure for a very long time during the measure’s introduction and it has only just recently increased that. So we will be out of line, when the original plan was to be in line and be competitive with other countries. The question is: will that have an impact? The answer is that the committee is concerned that it will have a significant impact on tourism.
To those who think, “Well, what’s the evidence for that?”, I say that we already have some evidence. One of the other things we were concerned about was the original intention for transit passengers to Heathrow and Manchester to have to apply for, and pay for, an ETA; we thought that that would be a disadvantage to Manchester and Heathrow Airports in particular. The current Government have looked at that, and we are pleased that they have decided not to go ahead with it and, temporarily at least, it is not happening.
Lord Foster of Bath (LD)
It is a brave Minister who continues without his Whip.
I was trying to explain why fees such as the ETA fee must be looked at in the context of the possible impact on tourism. The example I was giving to illustrate it relates to the system that we had until recently, whereby an ETA fee was charged for people who were travelling from a third country through the UK in transit to somewhere else, using Heathrow and Manchester in particular. We as a committee were concerned about that and thought that it would have an impact on tourism; that was backed up when the ETA was introduced initially for a few Gulf countries. As a result of that introduction, Heathrow Airport alone recorded a reduction of 122,000 people transiting through Heathrow from those relatively small countries. That was when the fee was at £10; if it is to go to £16, you can see the impact that it will have on people—not for transit but for people thinking of coming here. There is real, clear evidence that this fee increase being proposed, from £10 to £16, could have a huge impact on tourism.
Of course, our committee expressed a particular concern in relation to these fees in terms of tourism in Northern Ireland and issues in relation to the common travel area between the Republic of Ireland and Northern Ireland. This issue was picked up in the 16th report of the Secondary Legislation Scrutiny Committee, which said:
“We asked the Home Office for any assessments it has made about ETAs to date, especially in relation to Northern Ireland (NI). The Home Office stated that as a result of its monitoring … it was working with a range of government and tourist bodies to ensure that ‘ETAs are not seen as a barrier to cross-border tourism on the island of Ireland’”.
I ask the Minister the very question that the committee suggested, which is
“whether (or when) firmer evidence can be made available on the practical impact of the ETA on”
Northern Ireland tourism. If the Minister has any information, clearly, that would be very helpful. More generally, given that the Minister said that this SI has been introduced following a review of all these fees, can he tell us whether the issue of tourism was taken into account? In particular, can he give a categorical assurance that, when the new SI comes forward—the one that will actually make the increase to the new maximum—the impact assessment will take account of tourism?
I said that Robert Jenrick, when he announced the whole scheme, made two points. His second point was that the £10 charge
“will ensure that the Department’s costs in delivering the scheme are effectively covered across a range of volume scenarios”.—[Official Report, Commons, 6/6/23; col. 44WS.]
Can the Minister, whose department has conducted this review, tell us whether the increase that is being proposed is as a result of evidence that the £10 is insufficient to cover the costs of the operation of ETA; or whether this is in fact just a way of making additional money for the Exchequer? I am sure that he will be able to answer that and will have the figures to back it up.
I just say to the Minister that, given that we see in the notes for this particular SI that the longer-term effect is to bring £260 million-odd into the Exchequer, I suspect that the fee increase for ETA is about adding to that. However, I also warn him that, if tourism is seriously affected in the way I have suggested, the Government will not be able to make that amount of money.
My final point is about the ease of operating the ETA system. If it is difficult to operate, that will put people off bothering and it will stop people even thinking of coming to this country as tourists and perhaps also for business sessions, and so on. When we looked at the ETA introduction, we were concerned about the lack of different languages in which the information about ETA was being provided. The then Government actually agreed with us and accepted that official information relating to ETA should be made available in a wider number of languages “as soon as possible”, including French, German and Spanish. So can the noble Lord tell us whether this has happened?
I should tell him that, prior to this meeting, I sought to find out for myself whether I could get details of how ETA operates in other languages. I could not. So I asked our good friends in the Library whether they could find out, and they told me that they too could not find any evidence that information is provided in any language other than English. They pointed out to me that, of course, some platforms have a translate option—that might be the clever way out—but, when we checked some of the platforms, we could not get the ETA to translate into different languages. So the evidence I have shows that what was promised has not been done. Of course, it may have an impact on people choosing to come to this country if they find it hard to get this information. So perhaps the Minister can address this.
There are many other issues with the ETA operation which are not relevant to the SI, so I will not raise them now, but the Committee and the Justice and Home Affairs Committee are very keen to have an opportunity to discuss those issues with the Minister. However, in the meantime, on this SI and the proposed future SI, I very much look forward to the Minister’s response.
Baroness Brinton (LD)
My Lords, it is a pleasure to follow my noble friend Lord Foster, who raised serious questions about the ETA and whether there will be an impact. He provided evidence to show that having an ETA at the current level, before any increases, is already having an impact. One of the general themes I will cover is what the impact assessment does not say about the impact on businesses, including tourism in this case, and other areas that I will come to. This is yet another charge that has gone up, adding to overheads, and it is becoming a problem in certain sectors.
It is also a pleasure to follow the noble Lord, Lord Rowlands, who outlined many of the problems that the Secondary Legislation Scrutiny Committee has been reporting on over the years. I look forward to the Minister’s response to his questions.
I will start on an optimistic note, given our debate on the previous SI. The Secondary Legislation Scrutiny Committee does not often hand out commendations in its reports, but it has commended the Minister and his officials on the Explanatory Memorandum, which was very helpful. With my calculator out, I did a lot of calculations and, although Minister may be irritated by some of the questions he gets, it is actually because we understand what is happening. That needs to be to be credited because we have not necessarily been able to give that credit in the past. The impact assessment was helpful, but I am not sure that it asked the right people about the impact. I will come back to that in a second.
Paragraph 29 of the Secondary Legislation Scrutiny Committee’s 16th report says that
“the net benefit of the changes is relatively small. Further, we note that in some scenarios set out in”
the impact assessment,
“the costs of the changes outweigh the benefits. This possibility arises because … it is ‘highly uncertain’ what goods and services visitors and visa-holders consume, and how many of those are provided”
by British businesses. Can the Minister comment further on this, or is the impact assessment just guesswork? That is the perhaps slightly unfair approach to trying to translate what the Secondary Legislation Scrutiny Committee said.
I say that because the maxima level set here is, pretty broadly, a 7% increase. I very much echo the comments made by my noble friend; the Government have made it very plain that when they do introduce fee rises—as opposed to setting a new maxima—most of them will go up to the new maxima. As the impact assessment says, the Government are trying to ensure that they can cover the costs of migration and the staffing for that, but I am concerned because 7% seems high.
For example, the pension triple lock is increasing by 4% this year. Many felt that was too high in the current financial circumstances. I am not going to comment on that but am trying to weigh it up as 7% seems to be a general increase, if not for the next year. I know the Minister will say it is only a maxima, but we heard elsewhere that there is an intention in most cases to go to that.
It is true that in paragraph 5.2, the EM says:
“The department is seeking to implement changes to fees to generate additional income from end users to support the funding of the migration and borders system and reduce reliance on funding from the taxpayer”.
However, the increases that are not 7% are the ones that really worry me. They seem bizarre and, in one particular case, ill thought through. For example, the skilled worker and temporary worker fees have both been increased by over 100%: from £239 to a £525 maxima for the skilled worker fee and from £25 to £55 for the temporary worker maxima. The reality is that in just over seven months, this Government have increased other costs to businesses—not Home Office costs, I grant you—but it is difficult and tedious for employers to recruit staff from overseas at the moment. I am not commenting on whether it was right or wrong, but the previous Government really tightened down on who could come to work here. Part of that was to start increasing substantially the costs that businesses and individuals coming here had to pay.
One of the costs I am particularly concerned about—we have just had a vote on this and there will be more before the evening is done—is on the increase to employers’ national insurance contributions. Not only are these increasing, but the floor for payment is lowered to include many lower-paid workers. Migrant workers filling gaps in our economy, such as in social care, hospices, agriculture and hospitality, are much more likely to be in those sectors where the margins for businesses are extremely low.
Our social care sector is already in complete crisis. Only today, there are reports of care at home being removed and clients being told they will have to leave their home and move into care homes, solely because of the economics of the increased national insurance contributions and the high costs associated with care delivered in a home setting. To have extra fees for migrant workers—often paid for by the businesses because the migrant workers just do not have their own resources—is going to add further to those sectoral problems. I wonder why the impact assessment says there are no financial implications from a 100% increase in these fees.
If these increases are as set out in paragraph 5.2 of the EM, did the Home Office actually seek advice from some of the sectors most reliant on overseas workers, whether skilled or temporary? I am slightly less worried about the very high-value skilled workers, where an employer will not only take on somebody at a high salary but be prepared to manage an oncost. It is those who are given temporary leave to work here, or in the health sector, where we know they have been granted.
Finally, paragraph 5.10 sets out the increase for the review of a decision related to immigration and nationality. The main fee maxima is increased by 7% and I have already commented on that. Hidden a few lines further down is a really shocking increase from £80 to £480 for an administrative review of a decision. This is nothing to do with the relevance of costs and I wonder if it is a financial punishment. An administrative review is very different to a review by a panel or senior officer, as referred to earlier in that section. Can the Minister explain why this particular administrative review has now hit the same maxima level as the much more complex and personnel-intensive level required under the main type of panel review?
By the way, it is interesting to note that, at paragraph 11.1, that particular increase has not been highlighted, whereas others have. I wonder why that might happen. The reason why the noble Lord, Lord Rowlands, my noble friend Lord Foster and I are raising these issues is to try to understand the strategy behind these increases, as opposed to just a reason to raise money. We are concerned that at least some of them may backfire and stop the increase in growth that this Government are keen to see.
Lord Cameron of Lochiel (Con)
My Lords, again, my thanks go to the Minister for setting out the background to this order and for the specific detail that he outlined. As he said, it is a matter of the principle of the fee increase, not the actual increases themselves. I am also grateful for the pertinent and interesting points made by the noble Lords, Lord Rowlands and Lord Foster, and the noble Baroness, Lady Brinton.
As the Government have outlined, this order seeks to increase the maximum fees that can be levied for a range of key immigration services, including the ETA, certificates of sponsorship and applications for naturalisation. This measure is not unexpected. It aligns with the policy direction pursued by successive Governments—including the previous Conservative Administration, who sought to make the immigration system financially self-sustaining and to reduce its reliance on general taxation.
Noble Lords will know that the principle that those who benefit most from the immigration system should contribute to its costs is a long-standing one. In this context, it is logical that the Home Office looks to raise fees, given the increasing financial strain on the system. The proposed fee increases are expected to generate an additional £133.6 million annually while reducing public service provision, thereby saving the Exchequer a further £12.42 million. On the surface, this appears to present a clear net benefit to the Government’s finances; the previous Government acknowledged the necessity of fee increases to maintain the sustainability and integrity of the system.
Going forward, it is of course important to assess whether these revenue projections are robust, particularly in the light of the complex and ever-changing landscape of immigration; and to ask whether these measures will in effect lead to the intended behavioural changes. For instance, we are told that previous fee increases had little impact on demand. Is that always going to be the case? The Government’s own impact assessment here on ETA, for instance, indicates a modest reduction in ETA applications due to the fee increase. All of this points to a general question for the Minister: what ongoing monitoring is in place to assess, on a continuing basis, the impact of fees on issues such as behaviour, demand and costs? I would be grateful if the Minister could outline that in his response.
In conclusion, we do not oppose the Government’s desire to increase fees in order to fund the immigration system. We must ensure that these fee increases are implemented in a way that is fair and equitable and which truly serves the long-term interests of both the immigration system and the broader public. It is in the best interests of the United Kingdom to have an immigration system that is financially sustainable and fair to all those who seek to contribute to our society. I trust that the Government will continue to monitor the effects of these increases and remain responsive to any concerns that may arise.
Lord Hanson of Flint (Lab)
I am grateful for the contributions from noble Lords and from the noble Baroness, Lady Brinton, on behalf of the Liberal Democrats. I want to remind the Grand Committee of something it already knows, but it is worth putting it in context at the beginning: there is no increase today in the fee levels, and impact assessments for each potential future fee increase, if this order were to be approved, would be put in place. There would be an impact assessment for each potential new fee level determined by the Government, in due course. That fee level may or may not be put forward by them at some point in the future, up to the maxima being agreed today, and would include an assessment of the impact on tourism, jobs, investment, growth and on the appertaining costs of any fee as a whole.
I know that the Committee knows that, but it is worth putting it in context. This is the hors d’oeuvre to a meal; it is not the main meal, because that will come downstream when potential new fee levels are put before both Houses of Parliament for approval, with an appropriate impact assessment covering the many points made by Members here today.
I will start with my noble friend Lord Rowlands, who I am pleased to see in his place. We shared a long time together in the House of Commons and it is good to see him again here today. He touched on a very important point. First, there is the scrutiny of legislation by the statutory instruments committee, which was also touched on by the noble Baroness, Lady Brinton. The points my noble friend made about that, and the performance of the Home Office, are well made. They were made in the previous debate by the noble Baroness, Lady Brinton; I am hoping that they will not be made in future debates, for the reasons I outlined then. The Government intend to make sure that statutory instruments have proper Explanatory Memoranda and are thoroughly investigated and overseen by Ministers, and that measures which are brought forward are appropriate and testable by the SI committee, and defensible by Ministers accordingly.
My noble friend Lord Rowlands made a clear reference to the failure to provide legislative cover for fee increases. This was round about April of last year. My first defence is that, as he will know, I was not the Minister responsible at the time. Why it happened is a matter of conjecture, but it has. I am not going to put the proverbial political boot in to previous Ministers or officials. That is where we are and, in their defence, there was a general election, which has impacted upon any timescales to rectify that error, but that error has existed. When it was noticed, measures were brought to the attention of Ministers in the current Government, and we brought forward regulations at around Christmastime. Those were taken through the Grand Committee and the House and approved accordingly, so that the fees now being charged are on a legal statutory basis.
As my noble friend mentioned, that leaves a gap of some months—maybe April to November—where fees were charged accordingly, with no legal backing. He asked, rightly, what measures there are to ensure that we take action on that. The Border Security, Asylum and Immigration Bill has within it measures to provide retrospective statutory authority for those fees that were charged in connection with services provided by Ecctis Ltd. On that basis, that Bill, which has been published in the House of Commons, is correcting the position on fees charged to date.
Those who have previously been charged have received a service that they have paid for. We want to avoid putting an additional burden on taxpayers, so we do not intend to issue refunds, because although the fee was charged without that legislative cover, the service that the fee provided was still received by the individuals concerned. We are trying to ensure that we regularise not just the situation, as we have now done, but that gap which happened—not on my watch, but it did. It is now being regularised by this legislation, which will be challenged. The noble Baroness, Lady Brinton, also mentioned this point. It is open to scrutiny and to approval, rejection or amendment in this House, but it is the Government’s position to try to resolve something we were not responsible for. I hope that answers my noble friend’s point, but I will happily take an intervention.
Lord Rowlands (Lab)
I believe so. The most important thing is: have the lessons been learned as a result of the fiasco that occurred, so that we can be assured that, in future, there will never be a fee that is not statutorily based?
Lord Hanson of Flint (Lab)
I will give my noble friend what I would say is a guarded response: I hope so. It is my intention that that will not happen again. I cannot verbally legislate today to say that mistakes will not be made by Ministers and/or officials downstream, but I hope that lessons have been learned. The moment it was drawn to this Government’s attention, we introduced legislation to regulate the current level of fees that were being proposed and, through the proposed Bill, cover legislatively the backdated gap that was in place. I hope I can give my noble friend that assurance. Certainly, it is something that current Ministers are aware of and do not wish to have—but, as ever, it is a human system, as my noble friend knows.
I turn to the meat of other points that were made noble Lords. I welcome the support of His Majesty’s Opposition Front Bench. The noble Lords, Lord Foster and Lord Cameron, and the noble Baroness, Lady Brinton, raised the impact on tourism, on jobs and on a range of other things. Let me put this into context again. The Government have to cover the costs of the immigration border control system. This is potentially helping with any future decisions taken—not the increase today, but any future decisions—to meet the costs of that system and to put in place measures to ensure that we have border control for tourism and employment, as well as the measures we are taking separately in the immigration Bill to look at illegal migration. It is important that we regulate that and that the taxpayer gets resource back from it. We have taken decisions, which may not be popular with the noble Baroness, to look at how we can potentially raise money from that. As I said, we will bring forward further impact assessments and proposals on the actual figures for each of the sectors that she mentioned, but we have made a judgment that we have to cover those costs and we must ensure we can do that.
The Government have a growth agenda. We do not want to hinder growth in jobs or in tourism; we want people to come to the United Kingdom. The question I throw back to the noble Lord, Lord Foster, is: would a fee of £16 deter somebody from coming to the United Kingdom on a tourist visit? I think he said yes from a sedentary position. That is a judgment we will have to examine and look at. The impact assessment shows a marginal impact. It is something we will have to look at. When and if we bring forward proposals on the rise from £10 to a potential maximum in the future, we will look at those issues. I do not know—do I not go to America because it costs me £35 or whatever it is for an ESTA? Do I not go to France, in due course, when I am charged a fee for its equivalent of an ESTA? Do I not go to Spain, to Greece or to other countries? Alternatively, do I absorb that as part of my tourism package?
Lord Foster of Bath (LD)
There is a great deal of research evidence on this very point. Going to America turns out to be very different from going to a country within the European Union. Going to a Schengen area country turns out to be very different now from going to the UK, because of course you can get one document to get into all the different countries. There is a great deal of evidence already about this, and when we bear in mind that this country has higher VAT on, for instance, accommodation, tourist attractions and so on than most other countries, we are already at a disadvantage. All I am grateful for is that the Minister has assured me that we are going to have full consultation and a full impact assessment when he brings the next stage forward.
Lord Hanson of Flint (Lab)
There will be an impact assessment. I still say to the noble Lord that people want to come to London: they want to see this building and Buckingham Palace; they want to see Downing Street and Trafalgar Square. In my home city of Liverpool, people want to see Beatles-related material or they go for football matches. People will go to York because of its history. People go to Scotland—the noble Lord’s home base—because they like Edinburgh and Scottish culture. That is not going to change because we have gone from £10 to £16. There might be other factors that stop people coming but I am not convinced that that figure will be looked at. I reassure the noble Lord that if the figure goes at a future date from £10 up to the maximum of £16 on that proposal, there will be an impact assessment and he can test it. He can vote for or against it in due course.
The noble Lord made another important point on the ETA form and I am grateful to him for raising it. I want to get the bottom of the source of his knowledge about potential translations—I will do this, if I may, outside the Grand Committee. I will look at it and write back to him in due course. At the moment, the form is available only in English. It has been launched in the Gulf countries. We have had no significant feedback, but I will take that point away. If there were assurances given previously by Ministers or officials, I want to get to the bottom of them. I am not aware of them from the discussions that we had today or from my discussions with officials in the Home Office. We will look at that in due course.
The noble Baroness, Lady Brinton, talked about the logic for all of this. The logic is that we have to fund the cost of the migration system. The logic is that if there are fee-level increases—which are not yet on the table, but could come—with impact assessments, these will be to ensure that we maximise the income to cover the cost of administration and of border systems generally. There may also be some businesses that ask, “Can I recruit home-grown employment?”. That is an important consequence as well.
Baroness Brinton (LD)
I am grateful for the Minister’s response. I am mindful that the Secondary Legislation Scrutiny Committee said that some of the increases in the maxima might not cover the administrative costs of introducing them. That then starts to be a burden on the Home Office’s budget, so is analysis being done to look at that? It will otherwise become counter- productive.
Lord Hanson of Flint (Lab)
The driver for some of these issues is to ensure that we have self-sufficiency on costs for this area. Obviously, I am talking today about the potential for maximas. We are not talking about what those fees are going to be. They may be the maximas and they may not. The Home Office will take that decision and it will lie predominantly with Ministers who are Members of the House of Commons, rather than of the House of Lords—such as myself. We will discuss those fee increases. That is a decision taken by the Minister for Migration and Borders, who is a Member of the House of Commons in the Home Office team. We will look at that and these orders will come forward to both Houses in due course. I will take feedback and discussion, as I am doing now with colleagues in this House.
The general principle of this is that we ensure that we raise that resource and potentially look at challenging behaviour so that we give opportunities for people to say, “If it costs X to bring someone from Y country, are those skills available locally to boost the economy locally?” That is a perfectly legitimate policy objective that I think was shared by the last Government and which is not difficult for Members to accept and understand.
I hope that I am covering all the points. The final point that I want to make is on Northern Ireland. Citizens of the UK, including citizens who live in Northern Ireland—whether they identify as Irish or British—will not have an ETA to go to Ireland, and, vice-versa, Irish citizens will not need an ETA to go to Northern Ireland. There will be tourist movement from other countries into Ireland and Northern Ireland, and potentially into the United Kingdom as a whole through that route. I am cognisant of that and we are aware of it. We will make an assessment on that. Again, I repeat my record that says that we have not yet made the decisions on the figures. We have not brought those forward or made the impact assessment but when we do, I will be ensuring with colleagues that that impact on Northern Ireland tourism is assessed, as will be the impact of the collectability of that ETA in relation to the island of Ireland and the common travel area.
I am grateful to noble Lords who have raised that issue but it is something on which we have worked closely with the Northern Ireland Executive and the Irish Government since the inception of the ETA policy. We will continue to work with those partners to understand the impact of ETAs in Northern Ireland. By requiring an ETA on crossing the land border, we will also have a better understanding of those who are seeking to come to the United Kingdom. However, as noble Lords, particularly the noble Lord, Lord Foster, will know, the land border issue in Northern Ireland is sensitive and not one that we wish to see imposed—as it was, even in the times when I was a Northern Ireland Minister 20 years ago.
With that, I hope that I have answered the points made. I commend this order to the Grand Committee.