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

Diana Johnson Excerpts

Committee stage & Committee Debate: 1st sitting: House of Commons
Tuesday 9th June 2020 Public Bill Committees

[Mr Goodwill]

Q Thank you for that guidance, Mr Stringer. Of course, EU nationals will be in the same category as non-EU nationals were. Does the Bill provide the equivalence of the posted workers directive? Under EU regulation, under that directive, people can work in other EU member states. Will there be equivalence in this to cover that particular situation, where some workers—particularly people such as lorry drivers but other sectors too—may use that regulation to enable them to work?

Richard Burge: I don’t know. We will look at that and provide you with some written advice on it.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

I wanted to ask a follow-up to the question of the shadow Minister, my hon. Friend the Member for Halifax, about the income threshold. In some answers, we have heard about the effect that that might have on particular sectors, such as the care sector. Will you both say more about the regional impact of the provisions of the Bill? Do you have particular concerns for the regions? I understand that Richard Burge is speaking for the London Chamber of Commerce, but I am interested in what other chambers of commerce around the country might be thinking.

Martin McTague: We have made it clear that we think—if I heard the question correctly—that the care sector is a special case and should have a separate visa arrangement, because it does not fit neatly into any of the categories that we might like to define under normal immigration rules. It is clear from the experience that we have had over the last few months that this sector is under massive pressure. Any major changes would be disastrous.

Richard Burge: I would agree to the extent that I think that the care sector is a special case, but we need to make sure that the definition of the care sector—in terms of immigration—runs alongside what I hope is emerging in the Department of Health, which is a much closer definition of what care is, bringing it in. Certainly, the Health Secretary has been trying to say that care is as important as the NHS, so I think that it needs much more careful definition.

In terms of the regional perspective, we are a country of many parts. For instance, on the lower wage threshold, I am deeply worried that, particularly in essential services—care being among them, but also things such as porterage in hospitals—in many parts of the country this is not a sufficiently low level of wage to enable us to get people in who technically have lower skills but are in high demand. There needs to be a more nuanced approach to this in order to respond to the different economic circumstances in different parts of the country. My colleagues in other chambers think that I am quite fortunate being in London, where this wage level will get us through most of our problems but will not get them through theirs.

[Dame Diana Johnson]

Q Do you feel that by 1 January there will be a regime in place that will be sufficiently efficient to ensure that members of the Federation of Small Businesses will be able to have confidence that the scheme is going to work well for them and the requirements of their business? I am mindful of the very difficult situation that we are in with covid-19, as has been said already, and the bandwidth that is available in government at the moment.

Martin McTague: The short answer is that the time available is far too little for most small businesses to adjust to what is a completely alien system. It is relatively easy for the larger businesses with HR departments to make this adjustment. They may already be recruiting tier 2 employees, but for most small businesses it will be extremely difficult and costly. I think that all it will mean is that most of them will decide to scale back their operations and make sure that they adapt to a new world that has fewer skilled people.

Richard Burge: My view is that most small businesses will be able to get through this, if they know the rules soon enough, if there is a process by which they can use umbrella licensing, and providing that new systems are put in place by the Home Office. I think that is the critical thing. As I said, I have huge respect for the Home Office under the leadership of Matthew Rycroft and his team, but they are dealing with things such as covid-19 issues on immigration, refugees arriving over the channel, the situation in Hong Kong, and the immigration surcharge. They have a huge job list to do—and this is the only one in which they have a choice about the timing. I hope that the Home Secretary will be looking internally at the Home Office and its capability to deliver things that will then enable business to respond in a timely manner. I am concerned about the pressure being put on them.

[Stuart C. McDonald]

Q Since we have a little time left, to what extent does the shortage occupation list offer a partial solution to some of the challenges you face? We sometimes hear criticism that it is slightly unwieldy, slow and unresponsive. What is the experience of your members—from the London Chamber first?

Richard Burge: It is slow and unwieldy and should be faster. One way of improving that is to involve businesses much more directly in analysing what a shortage occupation should be. We can rely on businesses who are asked to join, say, an industry body, to work alongside the Migration Advisory Committee on that work. We can rely on them to be forthright but not to plead special interest. It needs to involve business much more directly and that, it is hoped, will enable it to be much more responsive to the marketplace. The marketplace is going to change very dramatically over the next 12, 18 or 24 months, and we do not really know how it is going to change, so we have to be light of foot.

--- Later in debate ---

[The Chair]

We have just over a minute for a very quick question and answer.

[Dame Diana Johnson]

Q I just wanted to ask what your views are of any regional implications of the changes that are to be introduced by the Bill.

Matthew Fell: The regional implications will be down to where there is a particular proliferation of types of sectors within a regional make-up. Some of the ones that we think are quite hard hit are care workers, general labourers in construction and the hospitality sector, as well as logistics. Hospitality is very much a regional industry, and that could be one that bears most of the brunt.

[The Chair]

Mr Fell, thank you very much for giving evidence to us. We found that very valuable. I am sorry about the technical difficulties we had getting through to you. We now move to our next witness.

Examination of Witness

--- Later in debate ---

[Kate Green]

Q In relation to part-time work, there is no pro-rating of part-time salaries in the Government’s £25,600 threshold. Were you asked to look at the implications of that, including the gender equality and other implications? If so, what are your conclusions?

Brian Bell: We were. That was another difficult decision we had to make. The difficulty is the following: for the worker route, the system works where you are sponsored by a principal employer—a main sponsor for your job. The question, again, is, where you would draw the line if you said part-time work was acceptable? We were given representations by some firms that said, “Lots of our workers almost have a portfolio of jobs, and they might do a day here, a day there and a day here.” That fits very badly into the system, because you need one employer. Frankly, I don’t think Home Office enforcement would be enough to really follow through every single worker and say, “When you add up all your jobs together, are you earning a sufficient amount that you are not burdening the Exchequer?”, which is one of the criteria we are focused on.

The issue became, if we did something like, “If you are willing to work at least 16 hours,” would that be okay? In the end, we concluded that the fiscal costs were significantly higher for that type of worker than for a worker who would come on a full-time salary. In the end, if you are going to be selective, we did not think that was an area you would be selective of.

I should say that we were mindful of the fact that that disproportionately affects women rather than men. Part-time work is, of course, much higher among women than men. In the end, we did not find that strong enough because, although that is true, the gender patterns of migrants as a whole are not that dissimilar between the sexes.

One thing that we discussed, and left open for Ministers to think about, is that, at the moment, tier 2 is quite restrictive, in that, if someone takes maternity leave, they are sort of supposed to go back to the full-time job as soon as they finish that maternity leave. We said that consideration could be given to whether, once someone is on a visa, there could be some flexibility for people who have a child to go back part time, and for that to still count. I think that might be worth considering.

[Dame Diana Johnson]

Q I want to ask about an issue that Make UK raised in their evidence. They talked about the lack of people with the relevant green-skills qualifications that we need. We know from today’s news that we are relying on renewable energy at the moment, and moving away from coal. The evidence they gave was that a lot of the people with those skills are based in Denmark and Germany. Listening to what you said, there is obviously a longer term issue about skilling up our own population. Could you explain how the provisions the Government are introducing will assist us now in dealing with the shortages that we have in that important sector, around offshore wind and renewables generally?

Brian Bell: I should say that, if they have green skills at RQF3 and above, they are eligible for the scheme, so they will be able to enter the UK on a visa, so long as the employer is sponsored and they are paid the minimum salary threshold. I am not sure why green skills should be any different from normal skills. If there is a qualification or experience required for that job, and the person meets those criteria, the scheme is open for them. The scheme is not open for people who are at RQF1 and 2, which are essentially the jobs that either require fairly low formal qualifications or for which the training requirement to get that job is not very long. If that is the case, my response would be that we can recruit from the UK domestic workforce to fill those jobs.

[The Chair]

I cut off Stuart McDonald earlier, and I think he had another question. We have a little more time, so he may finish.