Labour and Skills Shortages: Temporary Recovery Visa

Anne McLaughlin Excerpts

Tuesday 8th November 2022 Westminster Hall

[Anne McLaughlin (Glasgow North East) (SNP)]

I am pleased to serve under your chairwomanship, Mrs Cummins. I thank the hon. Member for Westmorland and Lonsdale (Tim Farron)—he comes from a beautiful part of England—for highlighting this crucial topic. Much like a lot of Scotland, his constituency faces the problems of rurality and the challenges of supporting a hospitality industry plagued by labour shortages.

It has been interesting to hear the many views on how we can tackle the issue of labour shortages post Brexit and post covid, especially given the divergence in the types of constituencies we represent, each with its own unique set of labour challenges, be they in agriculture, hospitality, fishing—we have heard extensively about fishing today—transport, construction, health and social care, logistics or food processing. The list goes on, but the core issue at heart remains the same. We have witnessed the doors slam on free movement, which is now a dirty word—well, two dirty words—for both the UK Government and the official Opposition. In addition, the global pandemic saw more than 1.3 million EU workers return home. When they finally thought about coming back, they were locked out by this Government’s hugely regressive post-Brexit points system.

If we had stayed in the single market, as the majority of people in Scotland voted to do, free movement would be the perfect solution to the many labour shortages across these islands. It will come as no surprise to hear that I am confident that Scotland will rejoin the EU—and that means the single market—as an independent member soon. Until then, we fully support the call for solutions to labour shortages through visa schemes, including a temporary recovery visa.

This is a crisis of the Government’s making. It was completely avoidable. It is a crisis caused by policy, politics and a rhetoric on immigration that is fuelling the right, stirred up by inflammatory language from the Home Secretary. I cannot tell hon. Members how shocked and disgusted I was to hear the Home Secretary refer to an “invasion” of immigrants to these shores. An invasion—really? “Invasion” conjures up images of insects, wild animals, wars and battles. It is far removed from the reality of the humanitarian crisis that we are witnessing in the channel.

The Minister could argue that the Home Secretary was not talking about migrants per se, just those crossing the channel—I do not think he will—but it is not acceptable, whoever she was referring to. The Home Secretary must understand that using that kind of language and stoking up fear about one set of migrants has an impact on all migrants. That includes the current and future migrant workers that the UK is absolutely dependent on.

It has taken empty shelves and closed restaurants to bring this issue to the public’s attention, but business leaders have been warning the Government for quite some time about the dire situation that they would find themselves in because of these shortages. The British Chambers of Commerce has said that of 5,700 businesses, more than 60% need to find more staff in the UK. Kate Nicholls, the chief executive of UKHospitality, pointed out that one in five workers has not returned after furlough, giving the sector a 10% vacancy rate. She agreed with the recommendations from the Digital, Culture, Media and Sport Committee for a temporary recovery visa, and said:

“This would go a long way to helping recruitment challenges and would support the sector’s ability to provide fantastic service to all its customers. We would strongly urge the government to consider its introduction as part of a pro-growth review of immigration policy.”

Three quarters of UK businesses have said that they are experiencing difficulties filling vacancies. I have received numerous letters from businesses in my constituency that are struggling to get staff and asking what exactly the Government plan to do about it. There is another reason to ensure that we fill those vacancies. As the CBI said recently,

“Guarding against skills and labour shortages can…help keep inflation in check”.

At a time when the cost of living is going through the roof, should the Government not heed that advice?

The Scottish Government have tried to help the UK Government out. The First Minister even offered to split responsibility for immigration policy with them, and proposed a Scottish visa, but that was refused. It would solve some of the economic problems in Scotland, but it clearly does not fit the ideology that says that if the Scottish National party suggests it, it must be wrong. The Scottish Government are determined to address these issues but have very limited powers available to them. They are proposing a rural visa pilot, which offers a community-driven approach to migration that can respond to the distinct needs of remote, rural and island areas.

We want to welcome people, not ward them off, because people make communities and keep our economy growing. It makes no sense to stubbornly believe that we can just do everything ourselves, especially when our rural communities—much like that of the hon. Member for Westmorland and Lonsdale, I am sure—face population decline.

Many of the initiatives from the UK Government are very temporary. I understand that the solution is not complete permanence, but they are so temporary that they offer no real certainty for businesses or workers. They are simply sticking plasters. That is the crux of the issue with so much policy at the moment—the short expiry dates. I have had milk that has lasted longer than some of the previous Cabinet’s plans. I hope this one does better.

Business, industry and the workers themselves need certainty. I have been trying to hammer home that point in relation to the six-month energy relief scheme that is on the table for SMEs, public sector organisations and charities. They simply cannot operate in weeks and months. Last year, we saw a three-month visa offered to HGV drivers. What good is a three-month visa? Who in their right mind would move to a country where they face being kicked out in 12 weeks’ time? That is a point that I would like to make to Labour colleagues. I am not going to go into how crushed I felt when I heard the Labour leader say that we have too many migrants working in the NHS, though I know I was not as crushed as the migrant workers themselves. Today, Labour’s shadow Health Secretary, the hon. Member for Ilford North (Wes Streeting), said that if they got into power, they would keep migrant workers in the NHS until they had enough home-grown workers trained for the health service.

[Rachael Maskell]

I worked in the NHS for 20 years and all I will say is that I know the value of working alongside people who have trained across the world. They bring their skills into the NHS, and it has been a privilege to work alongside them. I think we should aspire to recognise the skills they bring and the opportunities that provides for our patients.

[Anne McLaughlin]

I really do thank the hon. Lady for that. There will be so many migrant workers who have worked their backsides off in the NHS, especially during the pandemic, and who will be devastated about what has been said, but the hon. Lady’s remarks go some way towards balancing that out.

I have to ask: what kind of arrogance does it take to believe that doctors, nurses, radiographers and others are so desperate to be here in the UK that they will fill the positions that we desperately need to be filled in the NHS, knowing that when they are surplus to requirements, they will simply be dispensed with because both Tory and Labour Governments would much prefer the jobs to go to those who were born here? Employment is a two-way thing. Migration is a two-way thing. If we do not meet migrants halfway, they will not come and we will not be able to look after people. Everybody needs to think clearly about that.

We need solutions and ideas. One solution that has been put to the Home Office, certainly by my party—indeed some of my colleagues have private Members’ Bills on it—and other colleagues today, is to allow asylum seekers to work. We are facing labour shortages, yet we have tens of thousands of people who are already here, desperate to contribute and integrate with our communities, but they are cut off and left to rely on meagre handouts from the state.

The current situation plays into the hostile environment rhetoric so well. To paint asylum seekers as economic migrants here for benefits is just not true. Nobody wants to live on less than £6 a day, and people should not be put in that situation. Given that 76% of asylum applications are allowed on the initial decision, not to mention the many more who win their appeals, we are putting thousands of people in an enforced limbo when they could easily be contributing, paying tax and filling the gaps in our labour market.

I would like to know if the Government have any plans to consider this eminently sensible solution. As the hon. Member for Westmorland and Lonsdale said, there is no downside. If the Minister’s answer is, “No, we are not going to consider this solution,” he must see a downside, and he must tell us what he thinks that is. My preference, and my fervent hope—I saw him nodding his head earlier when it was mentioned—is that he agrees to look into allowing asylum seekers to work and plug the damaging gaps that are holding the economy back.

[Stephen Kinnock (Aberavon) (Lab)]

It is a pleasure to serve under your chairship for the second time in two days, Mrs Cummins—it is truly a privilege for me. I thank the hon. Member for Westmorland and Lonsdale (Tim Farron) for securing this important debate, and other right hon. and hon. Members for their thoughtful contributions. I particularly thank my hon. Friend the Member for York Central (Rachael Maskell) for her insightful speech. Her clarion call for pragmatism over ideology is something I hope everyone in this Chamber will support.

I would like to set out the Labour party’s approach to work-based migration in the UK. In a nutshell, we support the principle of a points-based system for migrant workers. I will not need to remind hon. Members that it was a Labour Government that introduced the points-based system in 2008 for immigration from outside the European Union. We are clear that there will be no returning to the free movement of labour that was a feature of our membership of the European Union, but we are equally clear that we need to build on and improve the points-based system currently in place. Our long-term ambition is to ensure that all businesses, in every sector, and our public services recruit and train as much home-grown talent as possible to fill vacancies, before they look overseas. For instance, we need to train more home-grown doctors, hence our commitment to doubling the number of clinical placements and to setting out a five to 10-year workforce plan, which is desperately needed when we consider the 7 million person waiting list and the huge issues with workforce shortages and challenges. We know that if we just turn off the tap of migrant labour, without the appropriate workforce structures and adequate training and recruitment in place, our public services will deteriorate and our businesses will struggle to meet our wider economic ambition to make, buy and sell more in Britain. In the end, it becomes a crutch, with more and more jobs eventually disappearing overseas.

Let me address the comments made by the spokesperson for the SNP, the hon. Member for Glasgow North East (Anne McLaughlin). I did not hear the comments today from the shadow Health Secretary, my hon. Friend the Member for Ilford North (Wes Streeting), but I know that our policy is very clear. We want to maximise opportunities for home-grown talent—doctors, nurses and care workers—but we absolutely recognise that we have to get the balance right. Where we have migrant workers playing vital roles, that is what we want to continue to have, but we want at the same time to maximise opportunities for home-grown talent. It is not an either/or question—a binary question. It is a “both …and”. It is a question of balancing—not turning the taps off here and turning the taps on somewhere else.

[Anne McLaughlin]

I appreciate the clarification, but it was quite clear that the leader of the Labour party said there were too many migrant workers in the NHS. The shadow Secretary of State for Health and Social Care seemed to be saying—I cannot remember the exact words, but obviously I will go and look again—“Yes, okay, we’ll allow migrant workers to be our doctors, nurses, whatever, until we have got enough of our own.” What does that say to them? “You are here when we need you, but when we no longer need you…” I support training people who want those jobs—training people here. But what does that say to those migrant workers who have committed themselves to our NHS? “As soon as we have got enough of our own home-grown people, we are going to kick you out.”

[Stephen Kinnock]

I think it would be a caricature of whatever comments were made to say that we are going to somehow stop people who are already here being here. That seems to be the logical extrapolation of what the hon. Lady is arguing, and I do not think that anybody would argue that. We value the workforce that we have, but we also want to build and create more opportunities for our own, home-grown talent. I am sure that that is something we can all agree on.

Let me turn away from the health and care sector for a moment and look at some of the issues that have been raised about the agricultural sector. We cannot have a situation such as we have had in the farming sector where 30,000 pigs are being slaughtered and £60 million-worth of crops are being burned, which is what happened over the past year. We also know that the construction industry lost 175,000 jobs in 2020-21, and that has had a big impact in the form of projects being slowed down. We know that, in September 2021, UKHospitality called for the Government to include the hospitality sector in temporary work visa schemes in the aftermath of covid-19 and reflecting the need to boost our economy. That call was of course echoed in the report by the Digital, Culture, Media and Sport Committee that was published on 24 October. It recommended the introduction of temporary recovery visas for industries—predominantly tourism and hospitality in this case—that are experiencing short-term labour shortages for so-called low-skilled roles.

We recognise these challenges and we feel that the way to find solutions is to go to the heart of the system so that it is better positioned and placed to deliver results on a sector-by-sector basis—pragmatism over ideology, as has already been said. The Opposition are well aware of the flaws in the current points-based system. We feel that the Government are failing to balance the need to encourage businesses to recruit and train home-grown talent with the need to use migrant labour to address short-term pressure points in the labour market.

The fundamental weakness is that the Government’s economic migration strategy is not joined up, so they will struggle to meet their economic and public-service priorities. For instance, we feel that the Migration Advisory Committee and the Skills and Productivity Board are not as integrated as they could be in making decisions on the shortage occupation lists.

We believe that the way to understand the type of short-term support that sectors require, for instance access to temporary work visas, is to get the system working properly, with more flexibility. At the heart of that should be a three-way dialogue, led and convened by the MAC, drawing together representatives from employers speaking for the sector, trade unions, and relevant Government Departments, to look at the sectors on the Migration Advisory Committee’s shortage occupation lists in detail. That dialogue would be the mechanism through which decisions are made around the short-term visa schemes, such the seasonal worker scheme, the youth mobility scheme, and new ideas, such as the temporary recovery visa, which is being debated here today.

The three-way working group would not only look at the shortage occupation lists but set conditions that companies that have sponsorship licences would need to meet on workers’ rights. We are worried that the current points-based system is also failing when it comes to the enforcement of labour standards.

We know, for instance, that Nepalese health workers, Indonesian fruit pickers, and care workers from the Philippines and Ghana, are at serious risk of exploitation through recruitment agencies charging fees, leading to migrant workers ending up in illegal debt bondage through having to repay those recruitment fees. Many of those recruitment agencies operate abroad, and it would be good if the Government were able to investigate whether work could be done by British embassies overseas to look out for problems and red-flag agencies that are suspected of nefarious practices.

We must also clamp down on illegal practices in the UK. Of course, it is illegal to charge migrant workers recruitment fees in Britain, but the Association of Labour Providers said that some employers in the UK are still demanding that workers pay for their recruitment fees. We need solutions to those issues.

Part of the challenge is that, under the past 12 years of successive Conservative Governments, the number of labour market inspectors has decreased to one inspector for every 20,000 workers, when the International Labour Organisation recommends one for every 10,000. I hope the Minister will share his thoughts on that ratio, and whether he believes that it will enable the Government to crack down on exploitation.

In 2019, the Conservative party committed to merging the three enforcement bodies—the Employment Agency Standards Inspectorate, the Gangmasters and Labour Abuse Authority and His Majesty’s Revenue and Customs’ national minimum wage enforcement teams—into one enforcement body. Perhaps the Minister could confirm what progress is being made on that, or is it perhaps another broken manifesto promise?

The main agency involved in the welfare of seasonal workers is the Gangmasters and Labour Abuse Authority. The scheme operators, which are responsible for recruitment, must have a licence from the authority and can have it revoked if they failed to abide by certain standards. However, the regulator does not routinely carry out inspections on farm premises, and some critics say it lacks the resources to police abuses of workers’ rights.

We also need to understand, for seasonal workers specifically, what action is being taken by the Government to ensure that the 40,000 businesses with sponsorship licences from the GLAA are being properly regulated by HMRC to ensure that they maintain high employment standards.

[Anne McLaughlin]

Is the hon. Gentleman aware of another issue, which the Daily Record in Scotland revealed the other day, that delivery drivers for Just Eat, Deliveroo and others—I cannot remember which of the others it was, so I had better not say any names—are able to rent out their accounts? They are told that they are responsible for ensuring that the person they rent it out to is allowed to work and has passed basic health and safety checks, and that is obviously not happening. People are having meals delivered, and do not know if that person has passed the checks that they should have. Just as importantly, some of the workers renting those accounts are not allowed to work and are being exploited. Would the hon. Gentleman agree that the agencies he mentioned should be able to look into that as well?

[Stephen Kinnock]

The hon. Lady is absolutely right that there is a vital role to play here, in terms of regulation and enforcement. Our major concern is twofold. There is a bit of a mixture of all of these agencies not necessarily co-ordinating together. There are three main agencies, so, first, let us have a single enforcement body. Secondly, the number of labour market inspectors should meet ILO standards. It is currently one to 20,000 and it should be one to 10,000. Those would be major steps in the right direction, and could be the start of cracking down on the issue the hon. Lady rightly raises.

Maintaining standards is not just important for the wellbeing of migrant workers and preventing undercutting, it is also good for employers, as we need to make Britain an attractive place to work, not least in sectors such as food and farming, where we are clearly more reliant on migrant workers than in other sectors. The National Farmers Union deputy president, Tom Bradshaw, told the Environment, Food and Rural Affairs Committee that, although a 30,000 quota for seasonal workers visas in 2021 was a lifeline for the industry, it has not been big enough.

We also know that the challenge for the sector is not just seasonal but year-round. We understand that there are recruitment challenges in relation to the short-term nature of these visas, which the Government must look at closely. Therefore, we need to be sure that the working conditions attached to the visas are as attractive as possible, in order to attract the workers that we need, and to avoid undercutting.

Of course, where sectors and businesses are given permission to recruit from overseas, we need to see commitment to long-term workforce planning. How, for instance, would a company plan to invest in home-grown talent in the long term? What is it doing to invest in research and development, in modernising its technology and machinery to boost productivity? Does it have a skills strategy? Those are the questions that should be asked of companies, as a quid pro quo and part of the conversation about being given shortage occupation and other permissions to bring labour from overseas. What is it doing to show its long-term workforce plan? How is it boosting productivity? Those are the questions that Government should ask. There should be a proper dialogue, rather than pulling arbitrary numbers out of the air within the Westminster bubble.

Are the Government asking for workforce plans from companies that benefit from the shortage occupation lists? If not, perhaps the Minister might like to say a few words on that. Those are the questions that Labour will ask, as and when we enter Government, committed as we are to ensuring that our points-based system strikes the right balance between incentivising employers to train and recruit locally with the right to recruit internationally where required.

I look forward to the Minister’s responses to my questions, in addition to those raised by other right hon. and hon. Members.

--- Later in debate ---

[Robert Jenrick]

I will give way to the hon. Member for Glasgow North East (Anne McLaughlin) and then the hon. Member for Strangford (Jim Shannon).

[Anne McLaughlin]

Could that failure to recruit enough HGV drivers from overseas have been anything to do with the fact that they were told they could come here for 12 weeks and would then have to go home again?

[Robert Jenrick]

No, that was not the issue. Without going off on a tangent, the root cause of the issue was the aging population of HGV drivers. Many were coming up for retirement and the industry had had poor pay and working conditions for a long time. There was also a global shortage of HGV drivers, so it was not unique to the UK. We saw it all over Europe.