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

Baroness Williams of Trafford Excerpts

Report stage & Report: 3rd sitting (Hansard) & Report: 3rd sitting (Hansard): House of Lords
Tuesday 6th October 2020 Lords Chamber

[Lord Rosser (Lab) [V]]

The grace period regulations limit a legal basis to live in the UK to those who were “exercising treaty rights” in accordance with existing EEA regulations by the end of the transition period. This must mean that such citizens who are not exercising their treaty rights fall outside the protection of having a legal basis to live in the UK. This appears to cover a potentially significant number of people, including those who have not held comprehensive sickness insurance.

Amendment 27A ensures EU nationals cannot have an application denied for citizenship, settled status, or pre-settled status on the basis they have not held comprehensive sickness insurance. It is clear from the debate there is considerable confusion—which I share—about the actual position. Surely, any doubts, confusion or uncertainty would be removed by the Government accepting this amendment or returning with their own amendment at Third Reading. That would help clarify the situation.

I conclude by simply saying this, as I do not want to repeat all the valid points that have been made. If Government will not do that, could the Minister spell out the circumstances in which an EU national would have an application denied for citizenship, settled status or pre-settled status on the basis they have not held comprehensive sickness insurance?

[Baroness Williams of Trafford (Con)]

I thank all noble Lords who have spoken in this debate, particularly the noble Baroness, Lady Hamwee, who has tabled Amendment 27A. I hope I can provide clarification.

The new clause has three main purposes. First, it seeks reassurance that comprehensive sickness insurance is not, nor will be in future, an eligibility criterion for applications to the EU settlement scheme. Secondly, it seeks to provide that if someone is eligible to apply to the scheme, their previous residence should be deemed lawful, whether or not that was the case under the EEA regulations. Thirdly, the new clause seeks to remove the lawful residence requirement from British citizenship applications by those who hold settled status under the EU settlement scheme.

Let me address the noble Baroness’s concern about comprehensive sickness insurance, which has been raised several times during consideration of the Bill. Subsections (3) and (4) of her proposed new clause concern eligibility to apply to the EU settlement scheme. I can assure the noble Baroness that currently, there is no requirement for comprehensive sickness insurance or previous lawful residence under the EEA regulations in order to be eligible to apply under the scheme. This will not change for applications made after the transition period, nor after the grace period. I can reassure the House that an application made before or after the deadline of 30 June 2021 will not be refused for failure to hold comprehensive sickness insurance. Accordingly, the amendment is not necessary.

I turn to proposed new subsection (2), which seeks to provide that the previous residence of anyone who is eligible to apply to the EU settlement scheme by the deadline of next June will be deemed to have been lawful whether or not it in fact was. In doing so, the intention is to support applications for citizenship, which I will come to shortly. However, the effect of this amendment is wider. It would create new residence rights for those who do not have them at the end of the transition period, as they are not complying with free movement law and have yet to apply to the EU settlement scheme. Those who are currently here without residence rights will continue to have no residence rights until they apply to the EU settlement scheme; that is why we are encouraging them to apply to the scheme.

In line with the withdrawal agreement, the Government are using secondary legislation under the European Union (Withdrawal Agreement) Act 2020—the so-called “grace period SI”—to save the existing rights of those EEA citizens and their family members who are lawfully resident in the UK at the end of the transition period under 2016 EEA regulations. The noble Baroness, Lady Ludford, asked me to set out the existing rights; they are pre-settled or, indeed, settled status. This means that an EEA citizen, or their family member, who is resident in the UK at the end of the transition period but is not exercising free movement rights will still be able to apply to the EU settlement scheme by the deadline of 30 June next year. However, they will not have any residence rights under free movement law protected during the grace period. This is for the simple reason that they do not possess these rights at the end of the transition period. This reflects the current situation, as set out in the free movement directive and the EEA regulations.

The noble Baroness’s amendment seeks to create new EU rights of residence beyond those saved by the grace period SI once free movement has ended. That cannot be right, nor accepted by the Government. Having an EU “right to reside” provides other rights beyond the right to stay in the UK, as it can confer access to social security benefits. I am sure noble Lords would agree that, at this juncture, after we have left the EU, it would not be appropriate to widen EEA citizens’ benefit eligibility any further than those groups who are already entitled to it.

This brings me to the final limb of the new clause, which I think is probably its main objective, concerning how EEA and Swiss citizens who hold settled status might then proceed to naturalise and become British citizens. The noble Baroness will be aware that the power to determine naturalisation applications from all migrants—not just EEA and Swiss citizens—is set out in the British Nationality Act 1981. Under Section 6(1) of the Act, an applicant is required to show that they have sufficient residential ties here. For example, they must have resided here lawfully for at least five years and they must no longer be subject to any immigration time restrictions. Proposed new subsection (1) would require any residence before the granting of settled status to be treated as lawful, regardless of whether it actually was or the circumstances under which it occurred. That cannot be right, and I do not consider it unreasonable to ask anyone wishing to become British to have resided here lawfully.

Amendment 27A seeks to treat those with settled status under the EU settlement scheme differently from other EEA and Swiss citizens, and also non-EEA citizens. I believe the noble Baroness is most concerned about those who—as the noble Baroness, Lady Ludford, outlined—are here as students or are self-sufficient. This is because free movement rules require them to hold comprehensive sickness insurance after their initial three months of residence in order to be lawfully resident. This is not a new issue. Had a student or self-sufficient person previously made an application for permanent residence documentation without holding CSI, they would have been refused.

The noble Baroness may be aware that, even where CSI has not been held by a student or self-sufficient person, it does not mean that a naturalisation application must be refused. The British Nationality Act permits the application of discretion to this requirement in the special circumstances of a particular case. Caseworkers will therefore continue to examine each application to understand why the individual did not comply with the EEA regulations, as well as any reasons which can nevertheless allow an application to be granted. This is already set out in published guidance for decision-makers. However, it is right that we assess on an individual basis, rather than having a general rule to overlook any non-compliance.

The noble Baroness, Lady Whitaker, made a point which we went over in detail yesterday, about people who are applying either to the EU settlement scheme or for citizenship, which are two different things. There are a lot of voluntary organisations to help people who might need assistance through this process, but naturalisation as a British citizen is not part of the EU settlement scheme; nor is it covered by the withdrawal agreement. We welcome people who make the personal choice to become British citizens, but there is no need for any new arrangements because of our leaving the EU. The existing system already applies equally and fairly to all applicants. I hope that I have given the noble Baroness the assurance that she sought and that she is happy to withdraw her amendment.

[Baroness Hamwee (LD)]

My Lords, I am grateful to those who have taken part in this debate. My noble friend Lady Ludford asked whether this was a chessboard, but I think it is more like snakes and ladders: up you go, you think you are settled and then you slither downwards into what she called the “crocodile-infested” waters of CSI.

When the Minister referred to “lawful residence” under the British Nationality Act I wrote a question to myself about whether this meant treaty rights—which you would need to have had CSI to exercise—to which I think the answer is yes. She then mentioned discretion. One always has a concern about discretion because the law should provide, not leave things to caseworkers, but the situation that we have posed is not unusual.

I do not intend a pun here, but the issue is not settled. I am glad that we have had this exchange. I do not pretend to know whether I am comforted. I think I am not, as noble Lords will understand from my last remarks, but much better that I leave the experts to use what the Minister has shared with us when they are considering the regulations. I thank her and beg leave to withdraw the amendment.

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[Lord Rosser (Lab) [V]]

I congratulate the noble Lord, Lord Pannick, on having persuaded the Government to introduce their Amendment 32A, in the light of his comments on this in Committee, and on tabling Amendment 32, to which I have added my name.

The similar concern over wording that resulted in Amendment 33 has not been addressed by the Government. Amendment 33 would remove paragraph 6 of Schedule 1. As noble Lords know, paragraph 6, like paragraph 4(2), is broadly drafted. It provides that any EU-derived rights, powers, et cetera, that are inconsistent with or “capable of affecting” the Immigration Acts or functions cease to be recognised.

The Delegated Powers and Regulatory Reform Committee and the Constitution Committee have both expressed their strong concerns about the sweeping powers that the Government are seeking to take under the Bill—powers that will not be subject to any effective parliamentary scrutiny. In Committee, in response to the noble Lord, Lord Pannick, the Minister said:

“I totally understand the point that the noble Lord makes about certainty. In addressing this, I should like to meet him, because I totally get what he is saying. He is not being difficult; he is just asking that we lay out the law and provide certainty.”—[Official Report, 7/9/20; col. 580.]


Why then are the Government not also prepared to lay out the law and provide that certainty over the EU-derived rights, powers, et cetera, that are being referred to in paragraph 6 of Schedule 1? I hope the Minister will answer that point in her response.

One has already been mentioned as a possibility. Bearing in mind that, in Committee, the Minister also said

“I note that the drafting of paragraph 6(1) of Schedule 1 ensures that nothing is missed that might mean free movement was only partially repealed”,—[Official Report, 7/9/20; col. 576.]


that could mean that the Government are not prepared to move on paragraph 6(1) because they do not rate their ability to ensure that the Bill says all it needs to say to ensure that free movement is fully repealed. To cover up for their anticipated deficiencies, the Government take these powers to act without full parliamentary scrutiny and leave people in a situation where the legislation, in paragraph 6(1) of Schedule 1, does not enable them to identify the exact nature of their obligations and rights. If that is the motive for not moving on paragraph 6(1) of Schedule 1, in the way that the Government have on paragraph 4(2), one can say only that that is not the purpose for which use of these powers was originally intended. No doubt we will hear from the Minister why the Government have not moved on paragraph 6(1) of Schedule 1 or at least produced their own amendment in response to Amendment 33 of the noble Lord, Lord Pannick.

[Baroness Williams of Trafford (Con)]

My Lords, I thank the noble Lord, Lord Pannick, and other noble Lords who have spoken to Amendments 32 and 33. I was grateful for the opportunity to meet the noble Lord and draft Amendment 32A as a result.

I understand why noble Lords find these provisions difficult to follow. They are, however, essential in repealing EU free movement. Paragraphs 4 and 6 of Schedule 1 disapply elements of retained EU law, where they are inconsistent with or affect the interpretation, application or operation of the Immigration Acts. “The Immigration Acts” is a commonly used legislative shorthand for the UK’s domestic immigration legislation. Most importantly, it includes the Immigration Act 1971, which sets out the requirement for non-British and non-Irish citizens to have leave to enter or remain. “The Immigration Acts” is defined in Section 61 of the UK Borders Act 2007, and the Bill, once enacted, will be added to that definition by Clause 3.

These phrases therefore clarify that the retained EU law in question does not provide a back-door route to enter or reside in the UK outside of the system of leave to enter and remain, once the main free movement legislation is repealed. That system is made up partly of Immigration Rules made under the 1971 Act. That is why the words

“by or under the Immigration Acts”

feature in these paragraphs.

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Moved by

[Baroness Williams of Trafford]

32A: Schedule 1, page 7, line 26, leave out “The other provisions” and insert “Articles 2 to 10”
Member’s explanatory statement
This amendment ensures that paragraph 4(2) of Schedule 1 applies only to Articles 2 to 10 of the Workers Regulation.