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

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Department: Home Office

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

Lord Green of Deddington Excerpts
Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Wednesday 30th September 2020

(3 years, 6 months ago)

Lords Chamber
Read Full debate Immigration and Social Security Co-ordination (EU Withdrawal) Act 2020 View all Immigration and Social Security Co-ordination (EU Withdrawal) Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 121-R-II Second marshalled list for Report - (30 Sep 2020)
Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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My Lords, this amendment is in my name and those of the noble Lord, Lord Green of Deddington, and my noble friend Lord Hodgson of Astley Abbotts, and I express my warm appreciation for their support. I leave it to others to speak to other amendments in this group.

It is a great pleasure to open the Report stage of this important Bill. I start by thanking my noble friend the Minister for her recurrent courtesy and helpfulness and for the full answers that she gave in Committee to most of the technical questions that I posed.

I always believe that enforcement of the law is as important as the laws themselves, so the key question is why the enforcement of UK national Immigration Rules has been so spectacularly unsuccessful for many decades under Governments of all parties. Perhaps surprisingly, it is if anything becoming even less successful. Part of the story is well set out in the Public Accounts Committee report published since the noble Lord, Lord Green, referred to its work in Committee. The PAC is a respected cross-party collection of the brightest and most experienced MPs. It is a devastating report, published as recently as 14 September. I quote from paragraph 4:

“We heard that the Department does not know how many people are living or working in the UK without permission, and the Department admitted its frustration at not knowing this figure.”


Put simply, many people come here for reasons that do not entitle them to enter the country and if they are formally found not to be entitled to be here, the authorities are unsuccessful in removing them in a large proportion of cases. I am referring to tens of thousands of people. Also very disturbing is the gradual increase in numbers coming across the channel in rickety boats and tiny inflatables, dodging the big ships, whenever the weather allows. In 2020 the recorded number is well over 5,000, which is more than double the 2019 figure. As I said in Committee at the beginning of this month, 416 migrants exploited fine weather to make the crossing in one day, arriving all along the south coast. Migrants are risking, and in some cases losing, their lives because the authorities are known to be useless at enforcing the law, and the biggest beneficiaries are the traffickers.

Late legal challenges are also undermining efforts to remove migrants who have no right to remain, with flights that are cancelled and then bad headlines that encourage yet more attempts to enter the UK illegally. The public are bemused. Why cannot we, like the vast majority of countries in the world, implement our own rules effectively? It is a major scandal, though a reader of the parliamentary reports of discussions in this House would need to be very alert to detect it.

My proposal is quite simple. Since the Government—indeed, as I explained, many Governments of different persuasions for a very long time—have not managed to fulfil their obligations satisfactorily in this respect, I suggest that they be put on report, literally. Given the unsatisfactory record, we should not allow matters to dip below the radar. We need to have the facts before us and have a light shone upon them, giving the Government every opportunity to explain regularly how they are making the progress that most of the country wants.

Of course, we all have individual cases where we want to see generous Immigration Rules and enforcement—staff for our businesses or domestic workers, attracting lower wages than we might pay to British equivalents; reliable-looking tenants; or daughters-in-law awaiting visas—but the aggregate is very damaging to the public trust, as we have seen in the north of England. The fact that it is easy to travel across the world very cheaply nowadays attracts many people who want to live and work in the UK. They come because we make people from everywhere welcome in our society; have strong, well-enforced laws on equality and modern slavery; and provide generous education, healthcare and housing for migrants as well as to natives. The pull factor is huge, putting pressure on enforcement and compliance with the law.

We heard in Committee about the work of the Migration Advisory Committee. It produces reports but its prime focus is on the appropriate level of migration from an employer point of view and to improve our labour market. It does not have, and does not see itself as having, a brief to advise on the scale of illegal immigration; nor are its members experts on the level of compliance with Immigration Rules, the effectiveness across the agencies involved, value for money or overall expenditure and resourcing in this important area. I believe that a report could fill that gap. Indeed, the Minister might want to consider the point made by the noble Lord, Lord Adonis, in Committee and ask the MAC, from its expert perspective, to recommend improvements to the policing of the immigration system.

Given the awkward history of enforcement, which I have to say goes back to my own time in home affairs at Downing Street in the 1990s, I can well believe that our proposal for a report six months after the passage of the Bill might seem unpalatable to Ministers and their civil servants, who are all trying to do their best. However, I urge them to consider our proposal afresh. The Government publish many reports every year; I agreed to a number of reports in Bills over the years as a Minister, and they are currently being suggested in this House in respect of both trade and agriculture. The requirement need not necessarily be provided in this Bill but a legislative requirement would provide a useful element of parliamentary scrutiny. It would make effective action more likely and help the Secretary of State to do a better job. The report could be repeated subsequently to see how successful measures had been. We would certainly revisit a report of that kind in the private sector, where I have spent many years. I very much look forward to hearing from my noble friend the Minister. I beg to move.

Lord Green of Deddington Portrait Lord Green of Deddington (CB) [V]
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My Lords, I am glad to support this useful and well-timed amendment proposed by the noble Baroness, Lady Neville-Rolfe. As she has so clearly described, enforcement has long been one of the weakest points in our immigration system. Despite that, it has faced an 11% real-terms reduction in its budget since 2015-16. The Home Office says that it

“continually looks for ways to reduce costs, so as to improve efficiency and deliver better value … for taxpayers.”

However, as the noble Baroness mentioned, since our Committee stage the Public Accounts Committee has published its report on immigration enforcement. It pointed out that the returns of those who have no right to be in the UK are “plummeting”. The report also criticises the Home Office for having provided the public with no information at all about the scale of illegal immigration for 15 years and points out that the Home Office

“failed to complete 62% of the returns it planned from immigration detention in 2019, compared to 56% in 2018.”

This may of course reflect the ever more strident behaviour of the legal arm of the immigration lobby, some of whom use late and sometimes spurious asylum claims to frustrate removals. Nevertheless, the performance of the Home Office can hardly be described as “better value for money”. Recent official statistics reveal that the number of failed asylum seekers who are subject to removal has doubled from 20,000 in 2014 to over 40,000 now. Clearly, more resources must be diverted to the task of removal, and those resources must be more efficiently targeted and implemented with determination.

Let me also make this point: it is important that the officials themselves should feel supported by the public, as indeed they are. We should avoid constant negative criticism—I hope that I have not done too much of it—as these officials are carrying out an important and difficult task. They need and deserve to be affirmed. After all, they are following due process and enforcing the rule of law, thus making an important contribution to the order that we cherish as part of our civil society. A report to Parliament on enforcement following up on the PAC report, as proposed in this amendment, would be a valuable next step.

Lord Hodgson of Astley Abbotts Portrait Lord Hodgson of Astley Abbotts (Con)
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My Lords, I have put my name to Amendment 1, which represents an important piece in the jigsaw of our new immigration system. We have just heard two very hard-hitting and detailed speeches from my noble friend Lady Neville-Rolfe and the noble Lord, Lord Green, about the vital role that enforcement plays and why it is so important that we check it is working effectively. In my few minutes, I want to focus on two aspects: transparency, to which the noble Lord has referred, and in particular fairness. The British public have a great interest in situations being fair, but both aspects will be needed in any enforcement regime that is to command public confidence over the longer term.

First, the present system is not fair to those people who try to come to the country legally. It cannot be right for other people to try to jump the queue with virtual impunity and at their expense. Good behaviour should have a proper reward. Secondly, it is not fair to the people who come here—these new arrivals—who will likely find themselves forced to work for below-standard wages in substandard accommodation, without any of the protections of the British state. It is modern slavery indeed. Thirdly, it is not fair to the British taxpayer who inevitably, in one way or another, usually hidden, has to foot the bill. Finally and most importantly, it is not fair to the members of our settled minority communities. Most but not all of the overstayers will be drawn from the races who make up our minority communities. Those members of our settled population, legally resident here and drawn from minority communities, are working hard to make a new life for themselves—and good luck to them. But they find their collective reputation damaged and undermined by a regime where many people are able to say that the system is not working and that they are somehow to blame.

How large is the problem? As is so often the case in this area, the data is imperfect. My noble friend Lady Neville-Rolfe referred to that fact. I have not been able to find any Home Office assessment of the overall problem since 2005, which would now be very much out of date. However, the Pew Research Center, a well-regarded authority, suggested last year that there may be 1.2 million unauthorised migrants in the country, or about 2% of our population. Noble Lords may point out that those are figures from the world at large, but there are some statistics from the EU. As of 31 March 2020—six months ago—the Home Office reported that 171,000 Bulgarian citizens and 564,000 Romanian citizens had sought settled or pre-settled status in this country. However, other Home Office figures showed that, as of 30 June 2019, nine months earlier, there were supposed to be only 109,000 Bulgarians and 457,000 Romanians officially resident in the country. That is an underreporting of 168,000 from those two countries alone, which of course form part of the EU.

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Moved by
6: Clause 4, page 3, line 8, at end insert—
“( ) Any regulations made under subsection (1) which make provision to permit EEA and Swiss nationals to enter the United Kingdom for the purpose of taking up employment must include a specified limit on the total number of such persons to be granted permission for that purpose each calendar year.”Member’s explanatory statement
This amendment would oblige the Secretary of State to place an annual limit on the number of EEA and Swiss nationals that may be granted permission to enter the UK to take up employment when making regulations under Clause 4(1).
Lord Green of Deddington Portrait Lord Green of Deddington (CB) [V]
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My Lords, first, I thank the Minister for her full and careful answers to a number of points that I raised in Committee. However, I now turn to Amendment 6.

Many noble Lords will have noted that I have retabled the three amendments that I put down in Committee. My reason is that the Government’s responses to these issues need further exploration—indeed, they set the tone for the whole new immigration system. The first of these amendments, concerning the cap, is by far the most important and of course is the subject of this amendment.

In Committee, I made the case for a cap with the powerful support of the noble Baroness, Lady Neville-Rolfe, and the noble Lord, Lord Lilley, and I was also supported by the noble Lord, Lord Adonis—a man who clearly has the courage of his convictions.

I see that the Home Office has today announced a new nationwide campaign to ensure that businesses are ready for the introduction of the UK’s new points-based immigration system as free movement ends. I note that this is going ahead before this Bill has been passed by Parliament and before the new Immigration Rules have even been published.

The Minister for Future Borders and Immigration, Mr Kevin Foster—by the way, I think he is the 16th Minister for immigration that I have dealt with—is reported to have said:

“Our new system has been designed with businesses in mind, treating people from every part of the world equally, welcoming them based on the skills they have to offer and how they will contribute to the UK, not where their passport comes from. It will be simpler for businesses to access the talent they need as we have removed the Resident Labour Market Test, lowered the skills and salary threshold, and suspended the cap on skilled workers.”


What it comes down to is this: the Government have cherry-picked advice from the Migration Advisory Committee to enable them to produce a policy that is entirely to the benefit of business and which, frankly, ignores the interests of British workers. Indeed, we now face a situation where millions of British workers will become unemployed and yet, for the convenience of business, the door will be wide open for an unlimited number of foreign migrants to come here and work. So, noble Lords may think it is “game and set” to the CBI. Maybe, but it is not “match”.

It seems that the Government are just ploughing on. Never mind that the MAC advised in January 2020 against the introduction of a tradable points system for the main work permit route—indeed, it pointed out that such a system had failed in the UK in the past, as some of us remember—and never mind that the Australians, on whose scheme this one is supposed to be based, have a cap on a number of key categories.

This policy is extraordinarily dangerous. The number of UK jobs that will be affected is huge—in the order of 6 million or 7 million. The number of potential candidates around the world who meet the A-level requirement and are of an age at which migration is quite common runs into literally hundreds of millions. How many of those speak enough English we do not know, but the point is that the numbers are huge.

Noble Lords will have noticed that the Government address these issues in purely economic terms. This is not solely an economic matter. The real-world impact on our own people is also extremely important. As I mentioned, we have a rapidly rising level of unemployment that will also run into millions, yet the Government’s policy not only ignores that baleful prospect but runs entirely counter to the sense of fairness that is such a strong British characteristic.

That, I am sure, is why public opinion is so strongly in favour of control. Nearly 60% of the public indicated in a recent YouGov poll that immigration has been too high and needs to be much more carefully controlled. Indeed so. Nor, by the way, is this a question of “Little Englanders”. A 2019 Delta poll found that the share of Scots in favour of a firm limit on the number of work permits was even higher than in England, 76% compared to 71%. Of course, the Scots are well-known for their common sense.

The central difficulty with the Government’s policy is the clear risk that the numbers will run away with them. If that were to happen at a time of high and rising unemployment, their credibility with key supporters would be shot. Yet the irony is that an effective precaution is a relatively simple matter: to introduce a cap on a monthly basis until the situation is clearer. Even now, it is not too late for the Government to rethink and remind the business community that they are a Government for all the people, not the tool of the few. What reason could they give for such a change? Simple: that this policy was drawn up, and indeed announced, before the full force of the Covid virus had struck the UK. What explanation could be clearer, simpler or easier to justify? I hope we will hear a cautious response from the Minister. I beg to move.

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Baroness Pitkeathley Portrait The Deputy Speaker (Baroness Pitkeathley) (Lab)
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There are no requests to speak after the Minister, so we return to the noble Lord, Lord Green of Deddington.

Lord Green of Deddington Portrait Lord Green of Deddington (CB) [V]
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My Lords, I thank the Minister for her response, which I will study very carefully. I welcome her indication that the Government will keep a close eye on the numbers. I hope that that will not exclude the possibility of introducing a cap if, in the light of experience, they feel that they should move quickly.

I am grateful for the widespread and powerful support from most noble Lords who have spoken in this debate. The noble Lord, Lord Paddick, rightly appreciated that the proposed cap was to apply to immigration as a whole from 2021. Leaving aside the mechanics of this Bill, the policy issue is for immigration as a whole from next January.

I would like to correct one misapprehension which is important. We are not suggesting that 6 million or 7 million people will arrive. That is the number of jobs that will be open to competition under the new regulations. Having said that, I beg leave to withdraw the amendment.

Amendment 6 withdrawn.
Moved by
7: Clause 4, page 3, line 8, at end insert—
“( ) Regulations under subsection (1) must make provision for the Resident Labour Market Test (as set out in the Immigration Rules Appendix A: attributes) to apply to job offers where a job offer forms part of the application of EEA and Swiss nationals seeking to enter the United Kingdom for the purpose of taking up employment.”Member’s explanatory statement
This amendment would require that job offers made to EEA and Swiss nationals which form part of an application for that person to enter the United Kingdom should first be advertised in the domestic labour market in accordance with the Resident Labour Market Test.
Lord Green of Deddington Portrait Lord Green of Deddington (CB) [V]
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My Lords, in Committee, the Minister quoted extensively from the Migration Advisory Committee. She said that the MAC had reported that it was “sceptical about how effective” the labour market test would be in giving settled workers the first opportunity to fill jobs—I think she just mentioned that again. She went on to quote the MAC saying,

“We think it likely that the bureaucratic costs of”—


a labour market test—

“outweigh any economic benefit”.

Her third quote was that the MAC thought it

“important to have protection against employers using migrants to under-cut UK-born workers.”

It continued:

“The best protection is a robust approach to salary thresholds and the Immigration Skills Charge”. —[Official Report, 9/9/20; col. 844.]


Those are the technicalities.

I have checked those quotations. They came from the MAC final report on EEA migration in the UK, dated September 2018. This report specifically recommended that there should be no change in the £30,000 general salary threshold that was in effect at the time—yes, no change. So those quotations have clearly been stripped of their original context.

If the Government are now keen to invoke the MAC, they might wish to note the committee’s previous findings. In February 2012, it said that increasing exemptions from the labour market test would mean:

“Resident employees stand to lose out from increased labour market competition.”


Again, in 2015, it said that the labour market tests

“help protect the domestic workforce from being displaced or replaced by migrant workers”.

Whatever it said most recently and in whatever context, it has clearly consistently recognised the impact of a labour market test. In the light of those previous recommendations and the lack of any subsequent detailed work by either the MAC or the Home Office to consider the potential displacement impact, the complete abolition of the labour market test is of considerable concern.

The context in which these proposals are now being considered, of rising unemployment, which a number of noble Lords have mentioned, and increasing youth unemployment, surely requires the Home Office to commission some serious analysis before implementing what could be a drastic step.

Further, the MAC, and worse still the Government, completely ignore the fact that widespread concerns about the abolition of the test are not just about economics. Other noble Lords have mentioned the importance of fairness. These matters are about fairness and perceptions of fairness. That explains why, as I mentioned in Committee, 77% of the public believe that employers should prioritise the hiring of UK workers.

At this point, I should like to recall that this amendment was powerfully supported in Committee by the noble Baroness, Lady Neville-Rolfe, and the noble Lord, Lord Lilley, both basing themselves on their experience of these matters at very senior levels of industry.

It is now obvious that the Government are struggling to justify a complete failure to give British workers an opportunity even to apply for jobs that are to be offered overseas. What this comes down to is whether the Government are going to cave in to the convenience of business or give British workers a fair chance. Which is it to be? Or have they already decided against British workers?

Finally, I notice that both the Labour and Liberal Democrat spokespersons avoided taking a view on this matter in Committee. They seemed to be unsighted. Perhaps they will take the opportunity of Report to clarify their positions. I beg to move.

Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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My Lords, I strongly support this amendment, to which I have added my name. Indeed, of the three proposed by the noble Lord, Lord Green, this is the one I have most hope of the Government accepting, in the context of the narrow EU-EEA focus of the Bill. I find it extraordinary that we should be thinking of dropping the long-standing requirement that jobs be advertised in the UK before overseas recruitment takes place. This will encourage employers, especially big employers, to recruit overseas without even trying the home market. We already have the benefit of the pool of 3.8 million or so EU citizens who have applied for the EU settlement scheme. Thanks to coronavirus, UK jobs are being lost everywhere, from the high street to our wonderful arts and entertainment industries.

In earlier discussions, defending the decision to dispense with the labour market test and the 28 days of domestic advertising it lays down, the Minister put a lot of emphasis on the salary thresholds and the immigration skills charge. I am not against the points-based system, as the noble Lord, Lord Paddick, seemed to suggest; however, with my experience of a number of industries, I think the thresholds look much too low, especially post-Covid. The skills charge has to be set against the recruitment fees that might have to be paid in the more demanding UK market. I appreciate, of course, that there will be scope to flex these numbers going forward—that seems to be what the Minister has been saying—however, I think this particular change is especially unwise.

While I do not rule out special arrangements for agriculture, mentioned earlier by my noble friend Lord Naseby, and for health workers—although the latter steals training and talent from countries that sometimes badly need it—we need our jobs to go to the home team wherever possible. We need a mechanism to encourage training, especially in the social care sector, which is crying out for suitable people, as my noble friend Lord Horam explained so eloquently in relation to Amendment 3. We are embarking on a skills revolution in the UK, and a jobs-first pledge, by advertising at home, should be part of our prospectus.

As I have said before, I am puzzled that trade unions such as USDAW, who I have worked so well with and who have done such a fine job in retail, are not strongly supporting the retention of some form of labour market test.

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Baroness Henig Portrait The Deputy Speaker (Baroness Henig) (Lab)
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There are no requests to speak after the Minister, so I call the mover of the amendment, the noble Lord, Lord Green of Deddington.

Lord Green of Deddington Portrait Lord Green of Deddington (CB) [V]
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My Lords, I thank the Minister for her response. This is not the time to counter anything that she might have said, but I fear that the Government may come to regret their reliance on a group of economists, however capable they certainly are. For example, she made no mention of the concept of fairness. I think that most of us who have dealt with employees of any kind understand the overriding need for people in charge to be fair. Therefore, I was amazed that the noble Lords, Lord Paddick and Lord Kennedy, care so little, it would seem, about the genuine concerns of what I like to call real working people.

I will leave it at that, except to thank the other noble Lords who spoke with most effective support for our proposals. With that, I beg leave to withdraw the amendment.

Amendment 7 withdrawn.
Moved by
8: Clause 4, page 3, line 8, at end insert—
“(5A) Where regulations made under subsection (1) make provision for the minimum salary requirement for new entrants to be lower than the equivalent salary requirement for other migrants, the regulations may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.(5B) For the purposes of subsection (5A), “new entrant” means an EEA or Swiss migrant who meets one of the following criteria— (a) the migrant is switching from the Student or Graduate to the Skilled Worker route;(b) the migrant is under the age of 26 on the date of their application; or(c) the migrant is working towards a recognised professional qualification or moving directly into a postdoctoral position.”Member’s explanatory statement
This amendment would require parliamentary approval of regulations which would make provision for the recruitment of new entrants to the labour market at pay rates below the general salary requirement under the new Points Based System.
Lord Green of Deddington Portrait Lord Green of Deddington (CB) [V]
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Noble Lords will be glad to hear that this is the last of my amendments. I realise that I have not declared my non-financial interest as president of Migration Watch UK, but I think that that is very well known in the House.

I retabled this amendment because the prospects for young British workers are getting substantially worse as the Covid crisis intensifies, yet the Government seem to be set on a policy that can only make matters even worse for this very important section of our workforce and, indeed, our society. I just cannot understand how they feel that they can brush this matter aside.

The Minister sent a letter to all Peers on 15 September after the second day of Committee. In it she said that, although some of the questions raised in the debate were outside the scope of the Bill—which they were—she has sought to answer them as fully as possible, and I am grateful for that. The annexe to that letter set out the current arrangements for the new labour market entrants from overseas so as to allow noble Lords to “compare and contrast” them with the new proposals. Unfortunately—I say this with care—the effect of this is unintentionally, I am sure, misleading.

The document provides extracts from the current rules that appear to show that new entrants can already be admitted at a similar low-salary level to that proposed with the rather clear implication that little will change. However, no mention is made of at least two fundamental changes that would indeed make a clear difference.

First, the new proposals will allow not just graduates to come and earn £20,000 or so a year, as at present; they will also allow young migrants to come to do A-level jobs for the same money, thus enormously increasing the numbers of those—from all over the world—for whom £20,000 for an A-level job will indeed be an attractive salary. One could perhaps add that many will have families already here who will encourage them and that this can lead to settlement. However, the Government’s own impact assessment states:

“Setting the new entrant salary threshold at 30 per cent below the experienced threshold is estimated to reduce salary thresholds for 55 high-skilled occupations but increase it for 16 high-skilled occupations.”


Secondly, I stress again that there will be no cap under the points-based system; that is quite clear at the moment—they are not putting in a cap. Therefore, the numbers of young people recruited will be constrained only by employer demand. Furthermore, the removal of the labour market tests means that employers can go abroad directly, whether or not willing candidates might be available in the UK. Noble Lords might remember that, some years ago, a factory in Northampton that makes sandwiches brought in a plane of 250 people to work there; they were not necessarily young workers, but they were brought in en masse. I checked later with the Minister responsible and found that that firm had not even been in touch with the local jobcentre.

That is just one example of the way employers have brought in—and could well do so in the future under the new conditions—significant numbers of young workers who would directly take the jobs of our own young workers. Therefore, taken as a whole, the annexe to the noble Baroness’s letter, although described as a response, does not actually answer any of the points I raised. Rather, it confirms that the position is in fact very much as I described it.

In a nutshell, this is a wholesale revision of the so-called new entrant route, to the considerable disadvantage of our own young people. I had hoped that it would be called out in the responses from the Opposition Front Benches, but I have no great hope of that in the light of what they have just been saying. Therefore, I await the Minister’s response again, and I beg to move.

Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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My Lords, I shall speak to this amendment, with which I have much sympathy. It seems surprising that we are offering a new entrant route, allowing employers to pay a third less than the headline rate, particularly as those with A-levels will now be able to come in as well as graduates, as the noble Lord, Lord Green, has just explained.

As a businesswoman with experience in quite a number of sectors, the going rates for the points-based system already look low and are likely to make overseas migrants attractive. That is especially true for the various professionals in the paper that my noble friend the Minister has helpfully circulated. That would be good news, for example, for US banks and legal firms in London, which should be employing local talent and not necessarily bringing it in from abroad.

Moreover, I think that the coronavirus will have had a dampening effect on some wage rates, so I think these numbers may already be out of date and, of course, it is important, as the Minister said, that the MAC keeps them under review very regularly. I hope I am wrong, but everybody has been saying that the tsunami of the coronavirus is likely to change the labour market.

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Baroness Williams of Trafford Portrait Baroness Williams of Trafford (Con)
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I thank the noble Lord, Lord Green of Deddington, for retabling his amendment and all noble Lords who have spoken in support or opposition.

The noble Lord, Lord Green, seeks to put in place separate parliamentary approval for regulations allowing EEA and Swiss nationals who are new entrants to the labour market to be paid less than other skilled workers. I recognise the intention behind this amendment. He is absolutely right that, in using salary thresholds as a mechanism to control immigration, protect the domestic workforce from being undercut and ensure the UK’s economy prospers, we must have confidence that salary requirements are set at the right level. It is for these objectives, in addition to ensuring that migrant workers are not exploited and that a skilled migrant is coming to the UK for genuine skilled employment, that a system of salary thresholds will form a critical part of our new skilled worker route.

In Committee, the noble Lord, Lord Green of Deddington, and my noble friend Lady Neville-Rolfe spoke about the risk of losing control of our borders and disadvantaging young people and the unemployed in the UK. The noble Lord also mentioned the Government’s recently launched Kickstart programme and his concerns that its benefits would be reduced due to our young people facing further difficulties and unlimited competition from those overseas migrants who meet the new entrant definition. I hope I can reassure noble Lords that this is simply not the case. Our salary requirements for all skilled workers are based on national earnings data for UK workers. Furthermore, while new entrants will benefit from a reduced salary rate, recognising these individuals should not be disadvantaged by the fact that they typically earn around 30% less than experienced workers, they will still need to meet other mandatory requirements to be successfully granted leave. Namely, along with all other skilled workers, they must have a sponsoring employer, a job at the appropriate skill level and be able to speak English to an accepted standard. Furthermore, the new entrant rate is not an indefinite offer. It is designed for those essentially at the start of their careers.

The noble Lord, Lord Green, also voiced concerns about settlement, given that the new skilled worker route will be a route that allows this, subject to meeting relevant requirements. While this is indeed the case, I can confirm that individuals will need to be paid at least the going rate for their occupation by the time they reach settlement. While it may not sway the views of some noble Lords, the Government did not agree this proposal in isolation. We sought independent advice from the MAC, outlined in its January 2020 report on salary thresholds and a points-based system and, following careful consideration of its findings and our own extensive engagement, accepted its recommendations.

I should like to put on the record that reduced rates for new entrants are not new; they have been a part of the immigration system since 2013. While we intend to continue the new entrant salary rate, in future the Immigration Rules will set a more consistent 30% reduction across all occupations. As the MAC identified, the differences in the current system are very large for some occupations. New entrant quantity surveyors, for example, may be paid 69% less than more experienced migrant workers in the same profession.

Turning to the crux of this amendment, the noble Lord is right that there should be parliamentary scrutiny of these requirements, but there is already a long-established procedure for that. The Government are required to set out their immigration policy in the Immigration Rules. This includes salary requirements and reduced rates for new entrants which can determine whether an immigration application succeeds or fails. Changes to the rules must be laid before Parliament, either House may disapprove the changes by negative resolution within 40 days of them being laid and the Secretary of State shall make any changes that appear to her in the circumstances to be required. Any such changes will be laid before Parliament within a further 40 days. I do not think it is necessary or proportionate to introduce a new procedure for salary requirements for new entrants, particularly at a time when the Government are committed to simplifying and streamlining arrangements. Furthermore, there seems to be no particular reason for the procedure for new entrant salaries to be different from the procedure for the general salary requirements or, indeed, any other requirements for skilled workers.

Additionally, as is made clear in recently published policy statements on the UK’s new points-based system, measures will be introduced in a phased manner and we will retain the ability to make adjustments based on experience and, crucially, to respond to the needs of the UK economy. New regulations under an affirmative procedure would lessen this responsiveness and could risk splitting up interconnected policies which together create a robust element of control, protect domestic workers and ensure that those who have the skills and talents that we need and who want to make a positive contribution can come to the UK.

For the reasons that I have set out, and on the basis that we will continue to lay before Parliament the full details of the requirements, including those for new entrants, I hope that the noble Lord will be happy to withdraw his amendment.

Lord Green of Deddington Portrait Lord Green of Deddington (CB) [V]
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My Lords, I am grateful to the Minister for that full account of the Government’s policy, which we will study in detail. It is not feasible to do that on the hoof. Let me say first that I certainly did not intend to suggest that the noble Lord, Lord Kennedy, or the noble Lord, Lord Paddick, do not care about working people. Clearly, they spend much of their lives among working people and the noble Lord, Lord Kennedy, was actually a trades union official for some time. However, I think they have not correctly judged the likely effect of the measures the Government are bringing forward, and I fear that—from everyone’s point of view—it is going to go pear-shaped. I am grateful for the powerful support of the noble Lords, Lord Horam and Lord Hodgson, and the noble Baroness, Lady Neville-Rolfe.

In the end, this comes down to a question of judgment about the raft of measures that the Government are bringing in in January and applying to the whole world. We have dodged some of the technicalities, but we are not talking about applying these things to EU citizens only. We have a brand-new, massively new system and it is very dangerous for the stability of public opinion on this matter. I thought that the noble Baroness, Lady Neville-Rolfe, hit the nail on the head with some very wise words. She said that this looks as though it is going too far with too many changes at once. That was simply put but none the less powerful, relevant and to the point. In the end, we will see what the numbers do. It will be a while before they take off, but my instinct is that they will, and at a very awkward time for the Government. That is their problem, but they have been warned. With that, I beg leave to withdraw the amendment.

Amendment 8 withdrawn.