Controlling Migration

Ed Balls Excerpts

Tuesday 23rd November 2010 Commons Chamber

[The Secretary of State for the Home Department (Mrs Theresa May)]

With permission, Mr Speaker, I would like to make a statement on immigration.

Controlled migration has benefited the UK economically, socially and culturally, but when immigration gets out of control, it places great pressure on our society, economy and public services. In the 1990s, net migration to Britain was consistently in the tens of thousands each year, but under Labour, net migration to Britain was close to 200,000 per year for most years since 2000. As a result, over Labour’s time in office net migration totalled more than 2.2 million people—more than double the population of Birmingham.

We cannot go on like this. We must tighten up our immigration system, focusing on tackling abuse and supporting only the most economically beneficial migrants. To achieve that, we will have to take action across all routes to entry—work visas, student visas and family visas—and break the link between temporary routes and permanent settlement. That will bring significant reductions in non-European Union migration to the UK and restore it to more sustainable levels. We aim to reduce net migration from the hundreds of thousands back down to the tens of thousands.

On the work routes to entry, all the evidence shows that it is possible to reduce numbers while promoting growth and underlining the message that Britain is open for business. After consulting widely with business and with the Migration Advisory Committee, I have decided to reduce economic migration through tier 1 and tier 2 from 28,000 to 21,700. That will mean a fall of more than a fifth compared with last year in the number of economic migrants coming in through tiers 1 and 2, excluding intra-company transfers.

Business groups have told us that skilled migrants with job offers—tier 2—should have priority over those admitted without a job offer, who are in tier 1. I have therefore set the tier 1 limit at 1,000, a reduction of more than 13,000 on last year’s number. Such a sharp reduction has enabled me to set the tier 2 limit at 20,700, an increase of nearly 7,000 on last year’s number.

The old tier 1, supposedly the route for the best and the brightest, has not attracted highly skilled workers. At least 30% of tier 1 migrants work in low-skilled occupations such as stacking shelves, driving taxis or working as security guards, and some do not have a job at all, so we will close the tier 1 general route. Instead, I want to use tier 1 to attract more investors, entrepreneurs and people of exceptional talent. Last year, investors and entrepreneurs accounted for fewer than 300 people, and that is not enough, so I will make the application process quicker and more user-friendly, and I will not limit the numbers of those wealth creators who can come to Britain.

There are also some truly exceptional people who should not need sponsorship from an employer but whom we would wish to welcome to Britain. I will therefore introduce a new route within tier 1 for people of exceptional talent—the scientists, academics and artists who have achieved international recognition, or are likely to do so. The number will be limited to 1,000 a year.

Tier 2 has also been abused and misused. Last year more than 1,600 certificates were issued for care assistants to come to the UK. At the same time, more than 33,000 care assistants who were already here were claiming jobseeker’s allowance, so I will restrict tier 2 to graduate-level jobs.

We have listened to business and will keep intra-company transfers outside the limit. However, we will place a new salary threshold of £40,000 on any intra-company transfers of longer than 12 months. Recent figures show that 50% of intra-company transfers meet those criteria. That will ensure that those coming are only the senior managers and key specialists who international companies need to move within their organisations.

I should like to thank the Migration Advisory Committee for its advice and recommendations. Next year, I will ask it to review the limit in order to set new arrangements for 2012-13.

However, the majority of non-EU migrants are, in fact, students. They represent almost two thirds of the non-EU migrants entering the UK each year, and we cannot reduce net migration significantly without reforming student visas. Hon. Members and others might imagine that by students, we mean people who come here for a few years to study at university and then go home. However, nearly half of all students coming here from abroad are actually coming to study a course below degree level, and abuse is particularly common at those lower levels. A recent check of students studying at private institutions below degree level showed that a quarter could not be accounted for. Too many students at lower levels have been coming here with a view to living and working rather than studying, and we need to stop that abuse.

As with economic migration, we will therefore refocus student visas on the areas that add the greatest value, and in which evidence of abuse is limited. I will shortly launch a public consultation on student visas. I will consult on restricting entry to only those studying at degree level, but with some flexibility for highly trusted sponsors to offer courses at a lower level. I will also consult on closing the post-study route, which last year allowed some 38,000 foreign graduates to enter the UK labour market at a time when one in 10 UK graduates were unemployed.

Last year, the family route accounted for nearly 20% of non-EU immigration. Clearly, British nationals must be able to marry the person of their choice, but those who come to the UK must be able to participate in society. From next week, we will require all those applying for marriage visas to demonstrate a minimum standard of English. We are also cracking down on sham marriages, and will consult on extending the probationary period of settlement for spouses beyond the current two years.

Finally, we need to restrict settlement. It cannot be right that people coming to fill temporary skills gaps have open access to permanent settlement. Last year, 62,000 people settled in the UK on that basis. Settling in Britain should be a privilege to be earned, not an automatic add-on to a temporary way in, so we will end the link between temporary and permanent migration.

I intend to introduce these changes to the work route and some of the settlement changes from April 2011. I will bring forward other changes soon after. This is a comprehensive package that will help us to meet our goal of reducing net migration, at the same time as attracting the brightest and the best, and those with the skills our country needs. This package will serve the needs of British business, it will respond to the wishes of the British public, and it will give us the sustainable immigration system that we so badly need.

[Ed Balls (Morley and Outwood) (Lab/Co-op)]

Let me start by thanking the Home Secretary for the—rather late—advance sight of her statement, for coming to the House this afternoon in person, and for clarifying the confusion caused by the misleading leak of the contents of her statement to the BBC this morning. The Home Secretary is right to say that migration has made, and continues to make, a vital contribution to the economic vibrancy, business strength and vitality of our country. She is also right to say that it is essential for migration to be properly controlled, for reasons of economic well-being and social cohesion. But the question is: how? The Labour Government put in place transitional controls on EU migration, a suspension of unskilled work permits, a tough but flexible points system to manage skilled migration, and tighter regulation of overseas students. They closed 140 bogus colleges, and imposed new citizenship requirements on those seeking settlement.

At the general election, the leader of the Conservative party proposed to go further in two key respects. First, he proposed a new target to reduce net migration to the

“tens of thousands by 2015.”

To meet that target, he pledged a cap on immigration, which he said would be tougher than the points system. At the time, the leader of the Liberal Democrat party said:

“We can’t come up with promises like caps which don’t work”.

He then agreed to the cap in the coalition agreement. Since then, the Government have been in wholesale retreat, and today they are in wholesale confusion over this policy. The Confederation of British Industry, the chambers of commerce, universities, Nobel prize winners, and UK and foreign companies—large and small—have all highlighted the huge damage that the Government’s proposals would do to investment and jobs.

The Home Affairs Committee and the Migration Advisory Committee have said that the proposed cap applies to only 20% of non-EU migration. As a result, we have had the unedifying sight of the Prime Minister hinting at concession after concession—in the face, we read, of opposition from the Home Secretary, thanks to the excellent public lobbying and guerrilla tactics of the Business Secretary, who, sadly, is not in his place this afternoon. In his use of such tactics, he is less Stalin and more Trotsky—and certainly not Mr Bean.

Today the Home Secretary has come to the House to confirm the details of the retreat. We will keep a close eye on her proposals to see how they affect business and science. None the less, we join business representatives in welcoming her decision to exempt intra-company transfers of workers. What has caused confusion is this morning’s briefing to the BBC that the total cap would be 42,700 work permits. Her officials then had to clarify the fact that there is no such cap on that scale. She has now said that she will allow 21,700 tier 1 and tier 2 work permits, but with no cap on migration caused by intra-company transfers. If the number of intra-company transfers goes up, will she put in place an offsetting cut in tier 1 and tier 2 work permits? If not, and I very much hope that she will not, will she confirm that her supposed cap is a con, a guess and a fig leaf—in fact, no cap at all?

The permanent secretary revealed today that 9,000 jobs will be lost from the Home Office, the bulk of which will be from the UK Border Agency. Will the Home Secretary confirm that she can implement the policy that she has outlined today, and keep our borders secure, with those cuts? On family reunification she had nothing new to say—no target—and on overseas students she announced no action, just another consultation.

I have learned in the past few weeks that it is a mistake to ask the right hon. Lady a long list of questions, but there is one question to which it is vital that she should give an answer this afternoon: is it still the objective of the Prime Minister and the Government to cut net migration to the tens of thousands by 2015? In her statement she repeated the goal, but she omitted to put a date on it. Will she reaffirm the 2015 promise? In recent months—on VAT and tuition fees—the Deputy Prime Minister has got into a habit of breaking pre-election promises. Can the Home Secretary reassure us that the Prime Minister has not caught the same disease? This is a simple question. Is the “tens of thousands” pledge still binding by 2015—yes or no?

[Mrs May]

I thank the right hon. Gentleman for that response. During the Labour leadership campaign, he said:

“as many of us found in the election, our arguments on immigration were not good enough.”

Listening to him today, I realised that Labour’s arguments on immigration are still not good enough. He made a number of claims about what the Labour Government did on immigration, including the claim that they introduced transitional controls when new member states entered the EU. I seem to remember that when the first tranche of new member states entered the EU, that is precisely what they did not do, despite every blandishment from the Conservatives to encourage them.

The right hon. Gentleman then said that the previous Government took action on the points-based system limits. I accept that, but what happened? They closed tier 3 of the points-based system of entry into the UK, but nothing else, so when tier 3 shut down, the number of student visas went up by tens of thousands. That is why this Government know that when we deal with one part of the immigration system, we must act across the whole of it.

I made the figures for the tier 1 and tier 2 caps that we are introducing absolutely clear in my statement. The right hon. Gentleman asked whether the UK Border Agency could manage the cuts and keep our borders secure with the changes in personnel that will be made, and the answer to that, unequivocally, is: yes, it can.

Finally, the right hon. Gentleman asked me to confirm what I said in my statement, which is that we aim to reduce net migration from the hundreds of thousands back down to the tens of thousands—[Hon. Members: “When? By 2015?”] If he is to criticise the Government’s plans on immigration, the right hon. Gentleman must have a plan. So far he does not even have an immigration spokesman, let alone an immigration policy. The British people, who according to his own words felt that Labour was no longer on their side and no longer stood up for them on immigration, will not listen to him until he has an immigration plan.

--- Later in debate ---

[Michael Ellis (Northampton North) (Con)]

I congratulate the Home Secretary on this statement. The shadow Home Secretary has apparently admitted in the media that the Labour party, when in government, made a mistake in 2004 by not applying transitional controls to enlargement of the European Union then.

[Ed Balls]

indicated assent.

[Michael Ellis]

I see the right hon. Gentleman nodding. Can my right hon. Friend assure the House that such transitional controls will be applied to any further enlargements of the European Union?