Statement of Changes in Immigration Rules

Baroness Browning Excerpts

Tuesday 23rd October 2012 Lords Chamber

The Statement of Changes in Immigration Rules does a disservice to the taxpayer and to your Lordships’ House. It does not address the problem as the Government seek to say it does.

[Baroness Browning]

My Lords, I join this debate briefly because I was intrigued by the noble Baroness’s Motion. I have discussed it informally with the noble Baroness. Having looked at this and made a study of average wages, I think it would be helpful if my noble friend in replying could confirm what is in the instrument, as was drawn to the attention of the House by the Secondary Legislation Scrutiny Committee in its report back in July. The committee said:

“The changes to immigration rules contained in HC 194 are extensive although mainly intended to strengthen or clarify the current position and reduce overall numbers claiming a right to settlement on the basis of family life”.

I welcome the fact that we are having a much more open and honest debate about immigration than perhaps we would have had three or four years ago. I read the memoir, Back from the Brink, by the right honourable Member for Edinburgh South West, Mr Alistair Darling, the former Chancellor of the Exchequer, where he confirms that perhaps things were not spoken about in the past. Immigration is an issue, and it is something about which we should be a lot clearer and have a discussion.

If it is the intention of this rule that we are to reduce overall numbers, which is how I have interpreted it, equally the rule changes before the House in this instrument seem to make it absolutely clear that financially, among other things—and it is among other things, because the financial aspect of this minimum threshold of income is part of a package of rules—people who live in this country and have dependants can afford to maintain them as well as live an average life. I always think that it is difficult when we talk about averages. Therefore, the bar has been set at £18,600, although the appendix to the instrument refers to a,

“minimum income threshold of £18,600 for those who wish to sponsor the settlement in the UK of a partner of non-European Economic Area nationality”,

and says that a,

“higher threshold will be required for sponsoring any dependent child under the age of 18 in addition to the partner: £22,400 for one child and an additional £2,400 for each further child sponsored before the migrant parent qualifies for settlement”.

It would be helpful to the House if my noble friend could clarify how that threshold was set. If I have understood it correctly, it is the sort of policy that one sees elsewhere. It is a level set to ensure that people are not dependent on the state. But, equally, there is another dimension to people’s wealth within the family. I wonder whether my noble friend could touch on something that was debated in some fullness, along with the economic impact of immigration, by the Economic Affairs Committee of this House. I have a copy of the committee’s report from the Printed Paper Office. In 2007-08, noble Lords discussed the question of capital. Apart from the threshold of income, how is capital considered? I realise that the noble Baroness, in tabling this Motion, looked at those on low incomes and the impact that this measure might have on them, equally there are families for whom capital can be a substantial part of their income. Will my noble friend say a few words about those who sometimes would be regarded as capital rich but income poor? Capital does not seem to be mentioned here at all, so, going back to that very good report that came out of the Economic Affairs Committee of your Lordships’ House in 2007-08, will my noble friend touch on that issue?

In adverts that encourage people to migrate to other countries, one often finds a focus on certain occupations. In English-speaking Commonwealth countries, they are particularly focused on people with certain skills, who are able to carry out certain occupations. Presumably, apart from the need to recruit those skills into those countries, there is also a focus on the ability to be financially independent. I thought that I would contribute to today’s debate as earlier in the week I went through some research that looked at levels of pay. I realise again that we are dealing with these dreadful averages, which are never quite what our personal experience is of individual cases. For example, if we look at teachers’ pay, the scale point for people newly qualified starts at £21,588. Looking at the salary bands that might apply here, we are looking at professionals and we are probably looking at people who have gained qualifications in a trade or a profession that would make them employable on coming to this country.

I also took a quick look at regional variations, particularly the average salaries in cities and the different categories there. In London, the average salary is £33,000 a year, which is not typical perhaps because of the nature of London. I went up to Aberdeen and found it was £33,000—no different from London. In Bristol, in the south-west, the average was £27,900. I will not read them all out to the House but I did not find any figures in the average city salaries below the £18,600, or anywhere near it, that would sustain a family with two children.

I want to ask my noble friend this question and I ask for a frank reply to it. If we are reducing the number of people allowed to come to live and work in this country—which is what the instrument is about and this is an open policy as we realise these matters need to be brought under control—are we gauging it at £18,600 plus the additional amounts for dependent children on the assumption that people will have qualifications or professions in which they can work which would add to the British economy? Is that what is steering it? Can my noble friend give some indication as to whether that figure is to recruit people where we have skills shortages or just a bar that has been set to make sure that in opening our shores to people from abroad we are not encouraging dependency on the state?