Immigration and Nationality (Fees) (Amendment) Order 2023

Lord Ponsonby of Shulbrede Excerpts

Monday 24th July 2023 Grand Committee

[Lord Ponsonby of Shulbrede (Lab)]

My Lords, following the passage of the Nationality and Borders Act 2022 and related changes to the Immigration Rules in March this year, this order is the next stage of a lengthy process to implement the Government’s planned ETA system. Ministers have set themselves a target to begin issuing ETAs to people from Qatar and other Gulf states this autumn and for the scheme to be fully operational by the end of next year.

With respect to the new ETA system, the scope of the order is limited to fees to be charged and requirements for applicants to submit biometric information. A number of the most important issues, about how the scheme will work and what impact it will have, are left for another day. The new ETA system is a major undertaking, and its effects will be wide-ranging.

Significant numbers of UK-bound travellers who do not need a visa will be required to obtain formal clearance to enter the UK for the first time. Whether or not the system will function as it should will depend to a substantial degree on the effectiveness of new technologies that are still in development. In this case, the ETA system will require applications to be made and, eventually, biometric information to be submitted, online or via a new app which is yet to see the light of day. The Government say that even the decision-making process may be automated. That will take highly sophisticated technologies, and robust testing will be essential before the new system comes online. Will the Minister therefore provide an update on what progress has been made in the development of those technologies to date, and tell us whether he believes that the Home Office is currently on track to meet the deadlines it has set for the rollout of those changes?

There is a series of questions about the potential impacts of the order, especially on the tourism sector and the wider economy, including how travel across the border with Ireland might be affected. I have yet to be convinced that Ministers are taking adequate steps to address the concerns raised by stakeholders and to mitigate the unintended consequences. With regard to tourism, the impact assessment published alongside the order recognised that it is reasonable to expect a fall in tourist numbers once the ETA has been implemented, and that revenues can be expected to decrease as a result.

Concerns about the implications for cross-border travel between Northern Ireland and the Republic are especially acute in this sector. However, the impact assessment fails to capture the different effects that the ETA may have across the UK’s different nations and regions. That is a significant oversight. Members of the Northern Ireland tourist board have expressed extreme concern about this issue. They feel that their marketing strategy is very much based on an all-Ireland approach and that the ETA might risk this. Will the Minister therefore set out what steps the Home Office plans to take to mitigate any adverse effects on the tourist trade that these changes may have across the UK, including but not limited to the effects on Northern Ireland?

Given that we are dealing with an order that addresses fees, can the Minister tell us what consideration the Government have given to the potential merits of ring-fencing some of the income generated from applicants’ fees as a means of providing financial support to any business that may find itself struggling with the transition?

Alongside the measures pertaining to ETAs, this order makes changes to the maximum fee level applicable to a range of UK visa routes. For the most part, the proposed increases are relatively modest. The notable exception is for student visas. At present, applicants cannot be charged more than £490, but the order would increase the maximum fee to £600, which equates to a more than 20% increase on the current level, with significant potential implications for international student numbers. As the Secondary Legislation Scrutiny Committee has noted, the scale of the increase is particularly striking when measured against the actual cost to the Home Office of processing those visas, which is less than half of what applicants have to pay. The Government’s impact assessment for the student visa fee increase acknowledges that this potential change is likely to have significant knock-on effects on the number of visas granted to international students and, as a result, on revenue from tuition fees, on which so many of our leading universities remain reliant.

Can the Government go some way to quantifying this? The noble Lord, Lord German, talked about quantifying these impacts and was disappointed by this lack of quantification, but, of course, this funding can be monitored as the system continues to roll out as there will be a number of stages in future. I seek reassurance from the Minister that the impact of the system as it is rolled out will be monitored in a quantitative way as far as possible.

[Lord Murray of Blidworth (Con)]

My Lords, I am very grateful for this constructive short debate. Turning to the various points that have been raised, first, I confirm to my noble friend Lady Lawlor that the Home Office will continually monitor the suitability of a person to hold an ETA and will cancel an ETA once granted if that becomes appropriate. An ETA can be cancelled on a range of grounds, including criminality, exclusion or deportation and on non-conducive grounds. Clearly the whole point of having an ETA of limited duration—two years—is that when a further application is made, further checks are run on the applicant. The electronic travel authorisation scheme is designed in such a way that the security of our borders is paramount.

On the process point made by the noble Lord, Lord German, as the SI Minister for the Home Office, I am very familiar with the work of the Secondary Legislation Scrutiny Committee and the content of its report. I reassure him that, as I said in my Written Ministerial Statement on 6 June, our intention is to charge a fee of £10, and this order allows for £15 as a potential maximum. As this order establishes only the chargeable function and the maximum chargeable fee, not the actual intended fee, the Explanatory Memorandum for this SI focused on the chargeable function and maximum rather than the intended fee, which will, as I said in my earlier remarks, be set out later this year in the immigration and nationality fees regulations.

The Secondary Legislation Scrutiny Committee raised concerns with the Home Office that the Explanatory Memorandum did not, as the noble Lord said, provide enough information about the bigger picture of the ETA policy and should have included the intended level of fees and the rationale for them. I have explained the logic behind the way we have set out the Explanatory Memorandum for this instrument, but of course I will bear in mind what the Secondary Legislation Scrutiny Committee said when I prepare and review the Explanatory Memorandum for the fees regulations that will be introduced later this year, and of course I will reflect more generally on the point in relation to fees legislation in future. I thank the noble Lord for raising the point.