Immigration Bill

Baroness Warwick of Undercliffe Excerpts

Thursday 3rd April 2014 Lords Chamber

I conclude with a point that I know the Minister is sympathetic to, as he has expressed this to us. In order to recognise that we have a change in attitude to bring about on the part of overseas students, we have to be perceived differently. It may be fair or unfair, but I have read the figures which show we are not perceived as a particularly welcoming country. The Government and the universities need to work closely together to convey a message that overseas students who are legal, good citizens and who contribute to universities are very welcome to enter the country. They need to make it clear to these students that, as long as they have the right attitude to their studies, work and their fellow citizens, they are extremely welcome because this is one of our greatest contributions to the world.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, as a co-sponsor of this amendment, I too add my support to the pleas made by the noble Lord, Lord Hannay. There is no need at this point to further persuade the House of the enormous benefits that international students attending our universities bring to their universities, their local areas and the country at large. To focus minds, I will present one fact: it was announced today in a report by Universities UK that the total economic contribution to the UK made by higher education exports in 2011-12 was £10.71 billion. To put that in perspective, the House of Commons Library estimated the economic contribution of the entire motor vehicle manufacturing industry at £10.4 billion. That is the scale of the industry we are discussing today.

I think that the Minister and the Government accept that analysis and generally want to encourage students from across the world to study here, which is to be welcomed. But the Government need to be particularly careful that these welcoming messages are not undermined by changes to the visa system that could be perceived as being unwelcoming towards international students. The survey conducted by the NUS, which was mentioned by the noble Baroness, Lady Williams of Crosby, highlights some worrying trends about the way the immigration system is perceived by the very people the Government want to attract.

Some of the measures in Part 3 have the potential to add to that perception. That is why I and other noble Lords tabled our amendment to remove students from these measures and to send a clear signal to current and potential students that they are welcome in the UK. While the Government are introducing new barriers to potential international students, reassurances overseas that the UK is open for business may ring a little hollow.

I have talked of perception and presentation because these are very real concerns when it comes to attracting international students and staff to the UK. However, there are a number of more practical concerns about the impact these measures could have on both students and staff. I want to follow on from the points made by the noble Lord, Lord Hannay, in introducing the amendment, all of which I support. Since this amendment was debated in Committee, the Minister has gone out of his way to provide detail on some of the measures in this part of the Bill, so I hope he will forgive me if I ask him to repeat and clarify some of these points now.

First, on the checks that landlords will be required to carry out before offering tenancy agreements, we should remember that many students coming to the UK will be moving out of their parents’ home, let alone their own country, for the first time. Assuming that the Minister’s Amendments 26 to 29 are accepted, many international students will live in accommodation that is exempted from the Bill, which is helpful. I am glad that the Government agree that the previous exemption failed to capture many students.

However, some students and, of course, the vast majority of international staff will still be moving into property in the private rental sector which is not exempted by the Bill. It is essential that students are able to secure accommodation in good time before their arrival in the UK. Similarly, academic staff at universities will want to make sure that they and their families have a roof over their head before they move here.

Tier 4 student visas can be applied for only a maximum of three months before the date of travel, so they are often received very close to the date that the student arrives in the UK. Students must be able to make at least conditional arrangements before they receive their visas. Will the Minister clarify that it will be legal and proper for landlords to enter into conditional arrangements with potential tenants who do not at the time of entering into that conditional agreement have a relevant visa and that this will be clearly communicated in any official guidance issued?

Secondly, only those without settlement rights will have to pay the NHS surcharge. Time spent on a tier 4 student visa does not count towards residency requirements for settlement rights. As other noble Lords have said, the Bill could result in the deeply iniquitous situation that an economic migrant who is later granted settlement may have to pay the charge for five years but a student who finds work and stays on here may have to pay for far longer—as long as 12 years in a row—if they studied at both undergraduate and postgraduate level.

With the noble Lord, Lord Hannay, I ask: will the Minister commit to addressing this unfairness when the secondary legislation is drafted? It is easily fixable by, say, limiting to five the number of years for which a person would have to pay the charge. There is provision in the Bill to at least have these charges applied fairly. Will the Minister commit to doing so?

I cannot end without supporting the plea of the noble Baroness, Lady Williams of Crosby, on behalf of postgraduate students. Those with a family are going to be hit really hard by the health charges. One has only to think of the number of our postgraduate courses that survive only because of the number of international students that we are able to attract to see the dangers if large numbers should fall.

I remain concerned that this Bill is part of a wider trend of immigration policy that could mean that the UK fails to capitalise on the extraordinary potential of its higher education sector. Even if the Minister is unable to commit to reversing this trend this afternoon, I hope that he will address at least some of the practical issues that I have highlighted today.

[Lord Hodgson of Astley Abbotts (Con)]

My Lords, I listened with great interest to the debate on this amendment in Committee on 10 March. Unfortunately, I was unable to stay for all of it, although I read it carefully in Hansard, and so was not able to take part, but I would like to make a brief contribution today.

Winding up for the Opposition on that occasion, the noble Lord, Lord Stevenson of Balmacara—that demon of the squash court, as he keeps saying—had some fun at the expense of my noble friend Lord Bourne of Aberystwyth, when he said:

“I congratulate the noble Lord, Lord Bourne, on putting his head above the parapet. Although I think he picked up some of the arguments, I did not think his heart was entirely in it”.—[Official Report, 10/3/14; cols. 1607-08.]

I intend to put my head above the parapet this afternoon, and I have to say that my heart is entirely in it.

Overseas students make an exceptionally valuable contribution that enriches our university life, but as I shall explain, I have concerns about scale, about leakage at the end of courses, and various consequent impacts on our settled population. Further, I think the extent of the beneficial impacts, adduced by various briefings we have had, are somewhat overstated.

I begin by following my noble friend Lady Williams of Crosby in talking about the briefings we have had, some of which have been quite cataclysmic in tone. They suffer, in certain instances, from mixing absolute numbers and percentages. It is perfectly possible to have an increasing absolute number and a declining percentage. Indeed, if one looks at market share, as some of the briefings do, it is almost certain that the UK will have a declining market share in an era when global university education is rising rapidly in parallel with people in the UK wanting to study overseas. In addition, as the UK has a historically high level of overseas students and a relatively small population in world terms, our market share is almost certainly bound to be declining.

More importantly, there have been attempts, in my view, to ascribe all the changes in student numbers to the proposals that we are discussing in this Bill. This is fanciful. There is a host of other reasons that influence people’s decisions on where to study—of those, notably, cost. Indeed, there was an article in the Times yesterday with a headline that suggested changes in the system were deterring students, but when you got into the meat of the article it was actually about cost. The piece mentioned cost only in sterling or Euro terms, failing to take into account the other great part of the cost—changes in the exchange rate. A year ago $1.50 bought you £1; today you need $1.66, so if you are a dollar-based student you are facing an increase of 10% in the costs of studying here in the UK. As regards India, which is an even more important market, as many noble Lords have said, a year ago 83 rupees bought you £1; today you need 100—a 20% increase in costs to a student from India.

--- Later in debate ---

[The Parliamentary Under-Secretary of State, Home Office (Lord Taylor of Holbeach) (Con)]

My Lords, I thank the noble Lord, Lord Stevenson of Balmacara, for his thoughtful contribution to the debate. I hope I can address the issues he has raised. We have had a good debate. We always have good debates on this subject. The House is not always in agreement with the Government’s position on issues, but I think we have come closer together as a result of the debate, the provisions of the Bill and the amendments that I have been able to bring forward today.

I do not want to sound boring, but I will reiterate the mantra that the Government’s objective is to attract the brightest and the best. There is no limit on numbers. We have to say that because it puts right at the top of the page what the Government’s policy is. We will go on, I hope, as we discuss this matter, and as I answer noble Lords’ questions, to demonstrate that the proposals in the Bill are not designed to dilute in any way that central policy.

We have had an interesting debate. I have had an interesting debate going on behind me between my noble friends Lord Hodgson and Lord Cormack. I know that they earnestly believe in the importance of the international student sector. I share that belief. It is a tribute to our education system and the talent of individual students who come here that we benefit enormously through our university sector. My noble friend Lady Williams of Crosby gave examples of outstanding academics who have benefited the world of knowledge and the world of medicine by their presence here in this country. They serve as exemplars of what our academic world is able to achieve. She has given me considerable detail which I am sure she will make available to other noble Lords should they wish to see it.

I turn to the Bill and to the amendments proposed by the noble Lord, Lord Hannay, and my own government amendments. In relation to tenancies, the Bill disqualifies individuals from renting property if they do not have leave to be here. Students will be able to evidence their immigration status simply by showing their biometric residence permits or visas to potential landlords. That is a simple and straightforward check. The Government have nonetheless given this issue further thought. As a result of our debates at Second Reading and in Committee, and as a result of meetings we have had outside this House, we have tabled amendments exempting student accommodation which is owned or managed by a higher education institution, all halls of residence, and any arrangement where the student has been nominated for the accommodation by their educational institution. I just want to emphasise that while the word “nominate” is something that those of us who have political lives associate with nomination papers and so on, nominating is just the naming of an individual as being a student at a higher education institution. That is all it is. It does not necessarily involve the university itself in any contract with the landlord or any renting arrangements that the student may be entering into. It is a form of vouching for the genuineness of the student’s immigration status. That is all. I hope that I have been able to express that in the plain terms that the noble Lord, Lord Hannay, asked for. I say further, and this is important too, that it applies to undergraduates— I think that would be understood—and also to postgraduates and to those completing their doctoral theses, so that all those who this House would consider to be students in the broadest definition of the term are included within this embrace.

The noble Lord raised three points that he wanted me to deal with. The first was the business of whether this extended to graduates. I have confirmed that that is indeed the case. Secondly, he asked whether this genuinely exempts the landlord. Yes, indeed; as long as he is satisfied by the nomination, then he has no need to conduct any further checks. If I may say so, this is rather analogous to the position of a person in a tied cottage. It has nothing to do with this part of the Bill but it is an interesting analogy in the sense that the person being employed can be vouched for and the landlord will have done the check on their employment in exactly the same way as the university will have done one on the engagement of the individual with the university itself. There is no contractual obligation on the university in respect of the tenancy that the individual student may be entering into. It is important to emphasise that as well. There is engagement, of course, but there is no contractual obligation.

Where a landlord wishes to rent to a student and does not want to check their immigration status documents, for whatever reason, they may make inquiries with the student’s educational institution and obtain this nomination. Nomination will be simply a confirmation of the student’s status, something that educational institutions already have to provide to students in order to prove exemption from the council tax. A suggestion made by my noble friend Lady Manzoor led us to explore this possibility. The term “nominate” is a broad exemption and it will allow higher education institutions to confirm that the student is exempt without being prescriptive about the form that this should take.

These government amendments will mean that landlords need not conduct an immigration status check as the educational institution will already have done so. The amendment removes the large majority of students from the scope of the landlords scheme. I also reassure noble Lords that the Government intend to make provision within the code of practice to allow landlords to agree a tenancy in principle with the students who have not yet arrived in the UK, allowing them to undertake a check of relevant documentation immediately before the student takes up occupation. In other words, it is possible for these arrangements to be made in advance of the student actually taking up their place at the university. A number of noble Lords had expressed concern on that point.

Perhaps I may park the landlord provisions and go on to talk about the health service surcharge—

[Baroness Warwick of Undercliffe]

Before the noble Lord does that, might I clarify whether what he is saying is in response to the point I made about a potential tenant entering into a conditional arrangement with a landlord? Is it legal and proper for the landlord to enter into that arrangement even though at that point, because of the time involved and so on, the potential tenant has not actually got their visa?