Immigration and Social Security Co-ordination (EU Withdrawal) Bill

Lord Hodgson of Astley Abbotts Excerpts

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Wednesday 30th September 2020 Lords Chamber

[Lord Green of Deddington (CB) [V]]

My Lords, I am glad to support this useful and well-timed amendment proposed by the noble Baroness, Lady Neville-Rolfe. As she has so clearly described, enforcement has long been one of the weakest points in our immigration system. Despite that, it has faced an 11% real-terms reduction in its budget since 2015-16. The Home Office says that it

“continually looks for ways to reduce costs, so as to improve efficiency and deliver better value … for taxpayers.”

However, as the noble Baroness mentioned, since our Committee stage the Public Accounts Committee has published its report on immigration enforcement. It pointed out that the returns of those who have no right to be in the UK are “plummeting”. The report also criticises the Home Office for having provided the public with no information at all about the scale of illegal immigration for 15 years and points out that the Home Office

“failed to complete 62% of the returns it planned from immigration detention in 2019, compared to 56% in 2018.”

This may of course reflect the ever more strident behaviour of the legal arm of the immigration lobby, some of whom use late and sometimes spurious asylum claims to frustrate removals. Nevertheless, the performance of the Home Office can hardly be described as “better value for money”. Recent official statistics reveal that the number of failed asylum seekers who are subject to removal has doubled from 20,000 in 2014 to over 40,000 now. Clearly, more resources must be diverted to the task of removal, and those resources must be more efficiently targeted and implemented with determination.

Let me also make this point: it is important that the officials themselves should feel supported by the public, as indeed they are. We should avoid constant negative criticism—I hope that I have not done too much of it—as these officials are carrying out an important and difficult task. They need and deserve to be affirmed. After all, they are following due process and enforcing the rule of law, thus making an important contribution to the order that we cherish as part of our civil society. A report to Parliament on enforcement following up on the PAC report, as proposed in this amendment, would be a valuable next step.

[Lord Hodgson of Astley Abbotts (Con)]

My Lords, I have put my name to Amendment 1, which represents an important piece in the jigsaw of our new immigration system. We have just heard two very hard-hitting and detailed speeches from my noble friend Lady Neville-Rolfe and the noble Lord, Lord Green, about the vital role that enforcement plays and why it is so important that we check it is working effectively. In my few minutes, I want to focus on two aspects: transparency, to which the noble Lord has referred, and in particular fairness. The British public have a great interest in situations being fair, but both aspects will be needed in any enforcement regime that is to command public confidence over the longer term.

First, the present system is not fair to those people who try to come to the country legally. It cannot be right for other people to try to jump the queue with virtual impunity and at their expense. Good behaviour should have a proper reward. Secondly, it is not fair to the people who come here—these new arrivals—who will likely find themselves forced to work for below-standard wages in substandard accommodation, without any of the protections of the British state. It is modern slavery indeed. Thirdly, it is not fair to the British taxpayer who inevitably, in one way or another, usually hidden, has to foot the bill. Finally and most importantly, it is not fair to the members of our settled minority communities. Most but not all of the overstayers will be drawn from the races who make up our minority communities. Those members of our settled population, legally resident here and drawn from minority communities, are working hard to make a new life for themselves—and good luck to them. But they find their collective reputation damaged and undermined by a regime where many people are able to say that the system is not working and that they are somehow to blame.

How large is the problem? As is so often the case in this area, the data is imperfect. My noble friend Lady Neville-Rolfe referred to that fact. I have not been able to find any Home Office assessment of the overall problem since 2005, which would now be very much out of date. However, the Pew Research Center, a well-regarded authority, suggested last year that there may be 1.2 million unauthorised migrants in the country, or about 2% of our population. Noble Lords may point out that those are figures from the world at large, but there are some statistics from the EU. As of 31 March 2020—six months ago—the Home Office reported that 171,000 Bulgarian citizens and 564,000 Romanian citizens had sought settled or pre-settled status in this country. However, other Home Office figures showed that, as of 30 June 2019, nine months earlier, there were supposed to be only 109,000 Bulgarians and 457,000 Romanians officially resident in the country. That is an underreporting of 168,000 from those two countries alone, which of course form part of the EU.

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[Lord Naseby (Con)]

My Lords, I hope the Government will listen to the noble Lord, Lord Green, who has been very persuasive over a great many years. He does his homework and is well worth listening to.

Context is the key issue. It does not take a genius to work out that we will probably have higher unemployment in the next two years than anyone in this House has ever experienced. Against that background, the driving force must be how we get our people back into work. That must be the number one priority.

I had the privilege, with my noble friend Lord Horam, of reading economics at St Catharine’s College, Cambridge. We were taught in some depth about Keynesian economics. Keynes came to the fore between the wars, with the unemployment situation. It was his driving force that produced the system whereby the public sector produced public sector works and employed the unemployed. That must be the driving force for the next two years.

There will be sections of society where we need immigration. Two come to mind: we always seem to be short of qualified doctors and we are clearly short of lab technicians, otherwise the testing and the analysis of it might be working together instead of one behind the other. Sections of our economy will need immigration, but it is not beyond the worlds of all of us to sit down and work out where that should happen.

I am pleased the Minister has made a statement today having consulted business—somewhat in contrast to Mr Gove and the haulage industry. Nevertheless—although I have not seen the whole speech—if he is talking to business, that is good.

We need more control. I do not know what the right figure is, but it is 100,000 or under. Our Government should look at that hard and in the context of where we really need some help because we sadly cannot use our unemployed.

I finish with basically the same sentence as I finished up with on the Agriculture Bill: we need to produce more home food. To do that, we need people to work in the fields, bring in the harvests, pick the apples, dig up the leeks, whatever it may be. If there are not enough people among the unemployed in Britain prepared to do that, we jolly well have to take it on the chin and bring in people to do it.

[Lord Hodgson of Astley Abbotts (Con)]

My Lords, I was very sorry not to be able to be here for the debates in Committee on these amendments, to which I put my name. I had an unavoidable business commitment elsewhere. I apologise to the House; I took the trouble to read Hansard carefully.

I support the amendment of the noble Lord, Lord Green. We need a limit on the annual numbers from the EEA and Switzerland seeking employment. The noble Baroness, Lady Jones of Moulsecoomb, said we should stop talking about it and just get on with it. She is right in a way, because a cap is inflexible and clumsy, but I have come to the conclusion—somewhat reluctantly—that it is inevitable and the only way we will be able to grasp the challenges that the number of arrivals in this country now poses.

Simply put, without a cap the Government will never get control of this issue. The noble Baroness, Lady Smith of Newnham, who I am glad to see is still in her place, asked why we think this. History, particularly recent history, has shown how extraordinarily difficult it is to grasp this problem. We have heard a lot about taking back control, but the awful fact is that, where we have no control over current arrivals—those from the EEA—arrivals are falling, but where we have always had control, they are rising sharply. In 2016, there were 133,000 arrivals from the EU; now there are 58,000, in the figures produced by the ONS a few weeks ago. Meanwhile, the non-EU arrivals were 175,000 and are now 316,000—nearly double.

I sat in this Chamber for many hours, hearing all those noble Lords saying that Brexit was going to chase everybody away and no one would come here because we would all be anti-foreigner. I can tell the House that in 2016, 308,000 people arrived here, and the latest figures say that 374,000 have arrived, so that is not a sign that people are being frightened away. Nor is it about no immigration. It is about scale—about 374,000 people. It is about 900 a day and all that means. I will not go through the things other noble Lords talked about, such as houses and the impact. We have 6 million more people in this country, and that is with drastically reduced levels from where we are today. If we go on at the current level, it will be 8 or 9 million more. At 6 million more people, we will build over an area the size of Bedfordshire by 2040. No ifs, no buts, no maybes—that will happen. We will almost certainly be unable to stop it, because you always look 10 or 15 years out when you do demographic planning. We need to be honest and clear about the implications of the decisions that we take in Bills and statutes like this.

How has this happened? At root, it is because it is in employers’ commercial interest to recruit trained but cheaper labour from overseas. Why go to the trouble and the expense of training members of a settled population, many of whom may be quite recalcitrant and not particularly grateful, when you can avoid all that effort by recruiting someone from overseas, who is probably jolly grateful? British industry and commerce have become addicted to overseas recruitment at the expense of our own people. Figures bear that out. My noble friend Lord Horam referred to the think tank Onward. Last year it reported:

“Since 2011 employer spending per trainee has fallen by 17% in real terms”.


Employers have avoided having to put money into training; they have been able to go overseas instead.

In researching the pamphlet I recently published, I investigated the engineering industry, another sector where employers are always bemoaning the lack of UK-grown engineers. I was absolutely astonished to learn that last year, six months after graduation, fewer than half the engineering graduates of this country were working in engineering. I understand that they are not all going to go into engineering, but fewer than half is a surprisingly small number. When I went to talk to some of these young men and women about why they had not moved into engineering, they said that one of the problems is that UK employers preferred to offer jobs to someone with experience—no surprise there. UK undergraduates find themselves in a position where they cannot get experience without a job, and they cannot get a job without experience.

My noble friend will no doubt point to the Migration Advisory Committee, which has been the subject of a number of our conversations this afternoon, and its enlarged remit. The MAC is a fine body of men and women, but even a cursory reading of its annual report shows the enormous pressure that it is under to effectively abandon all controls. To quote from page 81 of last year’s annual report: “The majority of respondents”—that is, employers sending information to the MAC—

“agreed that there should not be a salary threshold above the National Minimum Wage”.

Secondly:

“There was stronger support for the idea of a salary threshold that was in some way variable to reflect employer needs”.


That effectively means nothing. On page one of the report, the MAC pointed out that this was the inevitable conclusion of “an employer-driven system”.

My noble friend on the Front Bench is a redoubtable Minister, as is the Home Secretary. No doubt there are many redoubtable Ministers in the Government, but they will find themselves under irresistible pressure, carefully argued by employers, about the inability of the UK to compete on a world stage unless more arrivals are permitted. Under that pressure, Ministers will first buckle and finally break. As other noble Lords have pointed out, the full effect of the pandemic has yet to make itself felt. Surely none of us seeks to argue that the consequences for the employment of our settled population will be anything other than lessened. Against that background, allowing annual immigration of 374,000 a year—1,025 a day—must be ill-advised and maybe runs the risk of societal disorder. That is why a cap—clumsy, yes; inflexible, yes—set annually, debated and approved in Parliament, is critical. That is why I support the amendment of the noble Lord, Lord Green.

[Lord Paddick (LD)]

My Lords, the Bill is about ending the free movement of people from the EU and EEA, and Swiss nationals. The noble Lord, Lord Green of Deddington, and other noble Lords oppose the proposed points-based immigration system that relies on measures other than a cap on numbers to control immigration to the UK. As my noble friend Lady Smith of Newnham said, on 1 January at the end of the transition period, the rights of EU citizens to come and work in the UK will be replaced by controls based on salary and skill levels. That will also apply to migrants from the rest of the world. The number of EU migrants has already fallen significantly, and will continue to do so, as a result of the end of free movement that the Bill brings about. While we on these Benches regret that, it is the consequence of leaving the EU. That is what the UK people voted for; we have already left and will suffer the consequences.

I shall engage to some extent with some of the issues that the noble Lord, Lord Green of Deddington, raised and come back to them on future amendments. He said that the system was entirely for the benefit of business and not of British workers, would cost between 6 million and 7 million jobs, and that there were hundreds of millions of people potentially qualified to come to the UK to take those jobs. He said that the public were in favour of control. However, my understanding is that there will be control but of a different type from setting a cap. Presumably, although the Minister will enlighten us, salary levels and qualification requirements can and will be varied if necessary if consequently we suddenly face a so-called avalanche of people coming to the UK from areas other than the European Union. Any avalanche from the European Union would have happened already because, at the moment, there is free movement.

It is interesting that noble Lords opposite talk about business interests, yet in other debates they argue that we need a strong economy to pay for public services. The fact is that migrants, particularly migrant workers, contribute far more to public services than they receive in public services, and they certainly contribute more than the average UK resident does.

We on these Benches believe that government departments such as the Department for Business, Energy and Industrial Strategy and the Department of Health and Social Care have knowledge of the migrants that the UK economy needs, and that they, not the Home Office, should decide on immigration policy, points-based or otherwise. I will not entirely do the Minister’s job for her but perhaps she can convince the noble Lord, Lord Green of Deddington, that his amendment is not necessary because the points-based system will effectively reduce immigration.

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[Lord Horam (Con)]

This is about the resident labour market test and I find it quite astonishing, like my noble friends who have spoken to the amendment, that this should be removed at the point when we are entering a period of huge unemployment, as predicted by the Chancellor in his Statement only a few days ago. It is completely astonishing that that should be the case at the moment.

It is also amazing that the noble Lord, Lord Kennedy, has so far not supported such an amendment: it beggars belief, frankly, that the Labour Party spokesman is willing to give this up in such circumstances. I hate to attack—rather, argue—with the noble Lord but he did take me on in our last debate. I will not take long over this but he did ask, “Who is this think tank, Onward?” It is a perfectly reputable, charitable think tank. The point it was making, as am I, is that Australia has had a cap on immigration for years. We have imported half the Australian points-based system but are refusing to import the rest, which is the cap. They say in Australia, “no cap, no control”, and that is why they have a cap.

It is the same in Canada, where they have the same system and it is debated in Parliament. It is all perfectly transparent and its Parliament has a role. It is the same in New Zealand. The noble Lord, Lord Kennedy, also said that he was worried about the economy, but Australia and Canada have successful economies and caps on immigration; New Zealand has a successful economy. They are all rather more successful than we are, in many respects. I advise the noble Lord, as a true friend—we served together on the Electoral Commission and I really appreciate him as a stalwart Labour man—to think again about this and reposition his party. Believe you me, if the Labour Party does not reposition itself on immigration, I can tell him, it is in real trouble.

[Lord Hodgson of Astley Abbotts (Con)]

My Lords, I support this amendment, as the House would expect, but before I get there, the noble Lord, Lord Kennedy, threw down a challenge and I had better get to that first. I am pleased to be able to tell him that I paid for every single bit of that pamphlet. Every single envelope, stamp, and bit of printing was paid for by me and I am happy to share the receipts and information with him if he wishes. The only time that I used any of the facilities of the House was to distribute the pamphlet, a copy of which went to every Member of your Lordships’ House and every Member of the House of Commons.

I support the remarks of the noble Lord, Lord Green, and my noble friends Lady Neville-Rolfe and Lord Horam. I do not want to go over all that again now. In my remarks on Amendment 6, which we have just dealt with, I explained how employers have become addicted to cheap labour from overseas because it is in their commercial interests to do so. As a result, we have become thoughtless and careless about the employment opportunities for our settled population. We have young people locked into zero-hours contracts. We have members of minority communities locked into low-paid, low-prospect jobs. Increasingly, and really seriously because they are a larger part of our population, the over-50s find it hard to get jobs even as we raise the retirement age. A 2018 House of Commons report revealed that 1 million people over 50 would like to work or work more; 14% of 50 year-olds are out of work and 35% of 60 year-olds are out of work. Removing the resident labour market test opens them up to an even greater degree of unemployment risk.

As many noble Lords have said, as the impact of the pandemic makes itself felt, all these problems will get worse. How do we protect and look after our settled population in these circumstances, particularly since these same economic pressures will make employers ever keener to game the system and access cheaper labour from overseas? The first line of protection would have been a cap but we are not going to have it because my noble friend the Minister has told us so. This amendment is a second line of protection, as explained by the noble Lord, Lord Green of Deddington, since the resident labour market test prevents the grosser excesses of undercutting wages by recruiting from overseas.

I apologise to the House for not having been present in Committee, but I have read the debates and, following a point made by my noble friend Lord Horam, I was really astonished by a comment made by the noble Lord, Lord Rosser, at col. 843 of Hansard, about the trade unions. Why every union at the Trades Union Congress is not down here supporting this amendment as a way of helping and protecting the working man they seek to represent, absolutely astonishes me. Now, that is for the party opposite to sort out.

The strains that our society will face do not just come from the pandemic. They will come also from the impact of the fourth industrial revolution—from artificial intelligence and robotics, not often mentioned in our debate so far. In those circumstances, policies that will likely result in close to 1,200 people arriving on an average day cannot be sensible.

A key determinant of a person’s self-confidence and sense of self-worth is, undoubtedly, purposeful and secure work. Professor David Blanchflower said in his book Not Working, published last year:

“Unemployment hurts and it hurts a lot.”


The amendment, if the Government accepted it, would help reduce but, sadly, not eliminate that level of hurt, which is why I support it.

[Lord Paddick (LD)]

My Lords, I begin to wonder whether we should swap Benches at this stage. Again, the noble Lord, Lord Green of Deddington, longs for the old immigration regime that he has criticised so much. This time it is the resident labour market test or, as the former leader of the Labour Party, Gordon Brown, may have put it, “British jobs for British workers”.

The noble Baroness, Lady Neville-Rolfe, posited that UK employers were likely to recruit from overseas without even considering UK workers, and the noble Lord, Lord Hodgson of Astley Abbotts, said that UK employers were addicted to using imported, low-wage labour. I thought that under the points-based system there was a minimum salary of £25,600, which does not sound to me like undercutting UK labour.

Surely, British employers will look to avoid the immigration skills charge by hiring a UK resident in preference to a migrant, if they possibly can, and British employers will look to avoid having to pay a licence fee to be an authorised sponsor of migrant workers, if they possibly can. Migrants will be deterred from working in the UK, including in the National Health Service and social care, because they will have to pay the immigration health surcharge in addition to income tax, national insurance and VAT—effectively, having to pay twice for the National Health Service. Migrants will also be deterred from working in the UK because they will have to pay far more than the cost price of a visa, and because of the salary and skill levels they will have to attain to secure enough points to get a visa in the first place. From 1 January, all that will apply to all new migrants from the European Union as well as those from the rest of the world. Therefore, I do not think that the noble Lord’s amendment is necessary and we do not support it.

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[Lord Horam (Con)]

The contributions to this debate are getting shorter and shorter, and I intend to adhere to that pattern. The simple point I want to make is that this is part of a loosening of the arrangements—I would not call them controls—which were put in place at the beginning of this year and then amplified in July. Of course, since then we have had the coronavirus pandemic. We have the prospect now of an additional two million unemployed, and young people coming into the job market face a very bleak situation. These are not normal times.

The Treasury has responded rapidly and comprehensively to this situation with a major package earlier in the year and the less pronounced package of the last 10 days. What I hope and expect is that the Home Office reacts similarly and recalibrates the ideas it had before the world changed when the coronavirus set in. We really do need it to respond. I do not believe that the Home Office is unfit for purpose, as was once said by a Labour Minister. It has many able civil servants who are perfectly capable of responding to a changing situation, but they need to show it now; otherwise, people will lose faith in the Government.

[Lord Hodgson of Astley Abbotts (Con)]

My Lords, one of the weaknesses of the whole Bill is the extent to which the detailed implications are contained in regulations which are only now beginning to emerge. Every Member of your Lordships’ House will be aware that the scrutiny of regulations is much less effective than that of primary legislation; the noble Lord, Lord Pannick, raised that issue in the debate on one of the previous amendments. I should perhaps, just for the record, declare that I am the chairman of the Secondary Legislation Scrutiny Committee, but I am speaking for myself, not for the committee.

As the noble Lord, Lord Pannick, said, the regulations are unamendable, so the House is left with what I call the “nuclear option” of complete rejection. Unsurprisingly, the House has veered away from that course of action, except on the rarest of occasions. That is one of the reasons why I support the noble Lord, Lord Green, in this case, because he is actually trying to wrest back a bit of control by having some more specific plans built into the Bill. They are necessary for the reasons that he, and indeed my noble friend Lady Neville-Rolfe, laid out. In its way, this amendment is the third and last line of protection in regulating the extent to which the employment opportunities of our settled population can be undermined.

We already know that there is no cap and that we will have no resident labour market test. Therefore, if my noble friend the Minister refuses to accept this amendment—and I fear that if I could glance over her shoulder at her speaking notes, I would see that she might just be going to do that—it is extremely likely that our future levels of immigration will continue, probably in excess of a quarter of a million each year. It may be slightly below what we have now, at 320,000, but it will be well over a quarter of a million each year.

In Committee I chided the noble Lord, Lord Kennedy, who has been coming back at me this afternoon, when he refused to back my proposal to establish an office for demographic change, which was a planned idea, independent and transparent, to look at the complexities of these issues in the round—environmental, ecological, societal. It is easy to laugh—the noble Lord is already grinning—but the reality is that there are serious issues around water, land quality and species loss which are all related to how our population is growing. They are not entirely due to it, but they are very largely related.

I said to the noble Lord, I hope, gently, because I do not want to upset him—he is a sensitive soul—that his party had to decide where it stood on demographic growth, of which immigration is a part, because it is an issue that really resonates in the country. We have heard the percentages; 60% to 70% of people are concerned about it. In particular, his party must decide where it stands, or all the possibilities of recovering the red wall, now blue wall, seats will be vanishingly small.

However, it is perfectly fair to say that this is not without dangers for my party. We will face quite significant challenges. If those of us who are concerned about what happens if our population grows by 6 million or 8 million are right, and the package of policies before us continues to allow rapid growth—it is not about whether they are foreigners, black or white, or what their colour is; it is about the number of people—we will have two big challenges. First, a lot of the people who turned the red wall seats into blue wall seats did so because we promised a sustained reduction in the level of immigration. If we do not deliver that, they will feel betrayed and let down.

In parallel with that, every year we will have to build 100,000 houses to accommodate the quarter of a million people likely to arrive. The noble Lord, Lord Paddick, says that they pay more in tax than they draw in benefits, but there is a much more complicated issue, with which I will not bore the House this evening, about the capital investment to maintain and extend our roads and structures. They are not covered just by taxes; a much bigger level of capital expenditure is required. He and I can discuss this over a socially distanced cup of coffee, but I will not bore the House with it now.

We will build 100,000 houses a year, and they will be built in our shire counties. These people will not be delighted about it. We know that; housebuilding is intensely unpopular. The coming storm about the planning algorithm, which is now doing the rounds, is just the beginnings of the trouble there will be if we continue down this road. My noble friends Lord Horam and Lady Neville-Rolfe are right. The Government are wrong in believing they have the situation under control.

My noble friend the Minister nobly and loyally marches to the beat of the Home Office drum, which essentially says, “Don’t worry; it will be all right on the night”. I wish I shared the department’s confidence.

[Lord Paddick (LD)]

My Lords, my understanding is that what lies behind this amendment is the aim to allow Parliament to set a rate for new entrants instead of it being set at 30% lower than the national average going rate of £25,600 under the points-based system. To restate what I have said before, this Bill is about EU migration, on which there is no restriction at the moment. From 1 January, if this Bill becomes law, there will be restrictions on EU migrants and a salary floor for new entrants.

It seems that the gut reaction of the noble Lord, Lord Green of Deddington, to the new entrant salary level being set independently based on economic research by the Migration Advisory Committee at £20,480 is that it is a bit low. But as the Minister explained in Committee, the MAC found that those starting in their careers were typically being paid 30% less than those who were established in their role; hence the floor for new entrants is 30% less than the £25,600 set as the salary floor for migrants under the new points-based system. I am not sure whether the noble Lord, Lord Green of Deddington, is arguing that £25,600 is too low and therefore the new entrant salary level is too low, or whether 30% less for new entrants is not typical of a new entrant and therefore it should be something other than 30% less than the established rate.

If the noble Lord’s amendment is agreed, I would have to ask him on what basis he thinks Parliament should decide the new entrant salary level. I understand that the noble Lord believes that migration decisions should be based not on economics but on politics. May I say that I deny that I care little for ordinary working people, as the noble Lord said? If he would care to read in Hansard what I actually said, he will see that I felt that there were alternative protections for ordinary working people to what he was suggesting, which is completely different

We on these Benches believe that economic migration should be based on economics, while immigration by asylum seekers should be based on the compassionate consideration of the evidence of their claim. On that basis, we cannot support the noble Lord’s amendment.