Immigration and Nationality (Fees) (Amendment) Order 2018

Lord Hunt of Kings Heath Excerpts

Tuesday 27th February 2018 Grand Committee

[Lord Paddick (LD)]

My Lords, I thank the Minister for explaining the order and for her confession about the error in it. We have a fundamental objection to the approach that the Government are taking to move to a position where fees are charged to cover the costs of providing border, immigration and citizenship services. The security of the UK border is one of the most important mechanisms by which the Government keep us safe and we should not expect those who want to do the right thing and apply for leave to remain and, eventually, citizenship, some of whom come to this country as destitute refugees, to be forced to fund what is fundamentally the duty of the Executive.

Having said that, I understand that these regulations make only one change to the overall fee structure, where the biometric capturing part of an application comes to you and where the eye-watering fixed fee of £10,500 is to be replaced by an extraordinary hourly rate of £2,600. Will the Minister confirm that this is not the actual cost of providing the service, but a fee based on what the market can bear? Will she also explain why the Home Office is not maximising the profit from such a service to enable it to reduce fees in other areas, rather than giving this lucrative money-earner away to a private company? I understand that there needs to be two people to carry out the biometric capture, but if this is purely on the basis of cost recovery are we paying Home Office officials £1,300 an hour? Can I apply for a vacancy?

We support these regulations as far as they go and we look forward to the main event, when the actual fee levels for 2018 are set out in the forthcoming regulations next month. I give the Minister notice that those regulations are likely to be a completely different ball game.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I too thank the Minister for setting out the reasons behind this order and for the clarification she gave in her opening remarks. I too was fascinated by the level of fee charged changing from an overall maximum fee of £10,500 to a fee of £2,600 per hour. Some of us have occasionally done per diem work—I suppose we are not unused to it now—but our eyes can only water at the thought of such an hourly rate. It would be good to know where the justification comes from.

I also add to a point made by the noble Lord, which is that essentially a commercial provider is going to do the work. Although the Home Office will retain full oversight and jurisdiction, the relevant fee will relate to the cost associated with the commercial partner travelling to the location of choice as requested by the applicant. The mind boggles. Can they go anywhere? Without detracting from the quality of the people who will be applying for this service, it makes one wonder what exactly the commercial provider is there to do. Is this rate seriously based on the cost of that commercial provider? Does it build in a profit? It must. I must say that the Explanatory Memorandum begs more questions than it answers on those details.

[Baroness Williams of Trafford]

I thank the noble Lords, Lord Hunt and Lord Paddick, who both asked questions about the rather lucrative £2,600 hourly rate. I absolutely understand why the noble Lords asked that question. It is not the actual fee; it is the maximum. The actual fee will be set in regulations later this year, but it is important to understand what the amount is modelled on. It is modelled on existing costs and location of customers using the current service. The average time is two hours and for security reasons it requires two members of staff actually to do the work. It is a maximum amount and that needs to be borne in mind in the context of what noble Lords are asking.

As regards the organisations working with vulnerable people suggesting that the destitution assessment applied to those who make applications on the basis of private and family life is too stringent, our policy states that a fee waiver will be granted to applicants who demonstrate with evidence that they are destitute. That may well bring in the point that the noble Lord, Lord Paddick, made. The onus is on the applicant to demonstrate by way of evidence, which I am sure that a refugee or asylum seeker could, that they meet the terms of the fee waiver policy. It is open to such individuals to re-apply for a fee waiver on the evidence that supports their request.

The question about the supplier ensuring that they give value for money and account strictly for the time taken in each case was a very valid one. The Home Office’s chosen commercial provider will be required to demonstrate a clear and transparent method of calculation of the service cost, based on the applicant’s location, to deliver an on-demand service. This is an on-demand and premium service to a customer at a location of their choice. The contractual clauses will require that partner to undertake open book accounting to allow visibility of costs and charges for services provided to customers, which in turn will be reviewed by robust commercial oversight. I hope that that answers the noble Lord’s two very simple questions.