Visas: Health Insurance

Debate between Lord Patel and Lord Taylor of Holbeach

Monday 17th March 2014 Lords Chamber

[Lord Taylor of Holbeach]

We have missed the noble Lord from our debates on these issues on the Immigration Bill. I assure him that the points he is making have been well made but the Government are quite clear that this does not put us in an uncompetitive position. Even the basic health insurance for a student going to Harvard is $958 and he might expect to pay $2,190 a year more if he wants full health cover. In Australia the annual payment would be £300; in New Zealand £325; in Canada £300. The actual cost of students in this respect is estimated by the Department of Health at £700 a year. This is not putting us at a disadvantage in the world market. We have the most excellent institutions here and I wish people would stop talking down our attractiveness as a place to study.

[Lord Patel (CB)]

On two occasions now the Minister has quoted the figure that a student would have to pay as £700. In reality, is it not true that we do not know the level of usage of the health service by students, and that the Department of Health is conducting an audit right now that will determine it?

[Lord Taylor of Holbeach]

I have some figures here in front of me. I respect the noble Lord and I think he would agree that we have had some good debates on this issue. The figures say that non-EEA students cost the NHS around £430 million per year, with an average cost per head to the NHS of more than £700 per year. Those are the figures that I am giving the House, and I am assured that they are authoritative.

Immigration Bill

Debate between Lord Patel and Lord Taylor of Holbeach

Wednesday 12th March 2014 Lords Chamber

[Lord Taylor of Holbeach]

There is nothing sinister here. This is not a Machiavellian move by the Government. It is to bring in a differential between the charge for students and the charge for ordinary migrants, which I am sure that noble Lords applaud. That is the objective. I reassure my noble friend that I will take her advice and write to Noble Lords on this point. I was here for Third Reading of the Pensions Bill, when mention was made of the weight of paper with which noble Lords have been bombarded concerning that Bill. I fear that we may be getting into the same situation here, but I hope that noble Lords will understand that, in technical matters such as this, it is often easier to put things in writing, because I can be more explicit.

[Lord Patel]

My Lords, I thank all noble Lords who have spoken. I have a few points to make. First, the Minister said that the subsections of Clause 33 were very carefully drafted. Listening to the debate, I think that there will be a collective opinion in the House today that that is not the case. I am pleased that the Minister said that he will look at the provisions to see whether the purpose for which they have been written can be clarified. I look forward to new amendments.

I am much clearer now about three things. First, once the health charge, or the levy, is paid, currently, for all those who pay the levy, health services will be available to them free of charge, just the same as permanent citizens of this country. That bit is clear. The second thing clarified by the Minister—I thank him for doing that—is that the words,

“and different amounts may be specified for different purposes”,

do not refer to health service charges but to categories of immigrants or students who we allow to come to this country.

The third purpose is what the noble Lord, Lord Avebury, referred to in subsection (4), which does refer to health charges that might be brought in subsequently. In answer to the question of the noble Lord, Lord Willis, the Minister was quite clear that they do not apply to residents of this country and that the Government had no intention of using this as a backdoor way to bring in charges in the NHS for citizens of this country. The subsection refers to extra charges that the Government may introduce through legislation which will be brought to Parliament in the first instance. I hope that I am clear in what I understand and that that is what the Minister said.

On that basis, until we see the redrafted clauses, I beg leave to withdraw the amendment.

Immigration Bill

Debate between Lord Patel and Lord Taylor of Holbeach

Monday 10th March 2014 Lords Chamber

[Lord Patel]

If the Minister will allow me, before he answers the noble Baroness, can I make something clear? We keep confusing surcharge with levy. Let us talk about the levy that will be imposed on people coming here who are not visitors. Once that levy has been paid, it will allow them to access all health services. Is that quite clear?

[Lord Taylor of Holbeach]

Yes, that is exactly right. They will have the same access to health services as is available to a permanent resident. That is the whole purpose. It is administratively a tidy arrangement; it is straightforward and easy to police; and people will be paying it at the same time as they apply for their visa. Their visa application will show that they have those rights, so if anyone seeks to charge such a person, they will not be chargeable because they will have a clear right to free healthcare, just as the noble Lord and I would.

It is really important to emphasise that point, because the whole point of having the levy, the charge or whatever we call it, is to provide a contribution from people who stay here and may impose some cost on the health service but to avoid asking them for payments for services provided or to take out an insurance policy before they come here to cover any chance that there will be health costs. It will be an asset to the health service in the sense that it will provide money to support the health service. It also regularises the position of the individuals involved. I hope that that satisfies the noble Lord.

[Lord Patel]

It does, but I wonder whether this is new policy thinking, because much in the Bill, particularly in this part, implies that the Government want to be able to impose charges for other things.

[Lord Taylor of Holbeach]

I do not think so. I think that the Bill’s provisions are purely about health service charging for those who come here for a fixed term of six months or more and who are not here as visitors. It clearly differentiates between those who are here legally and with proper documentation and those who are illegal, so it will make it more difficult for those people who are here illegally to avoid the implication of their illegal presence here in the United Kingdom. We should remember that most people who are here illegally are overstayers; they are not people who have come in but people who should have gone home. That is one thrust behind the legislation.

--- Later in debate ---

[Lord Taylor of Holbeach]

They will have access currently, as the noble Baroness will understand. When they make an application to come here from now on, they will have to pay the health surcharge on top of the visa that they are currently applying for. I hope that I have made that clear. At the same time, it has been suggested from the Box that I ought to make it absolutely clear that the surcharge will be paid when a person applies for a visa and for leave to remain when they are in the UK and extending their leave. I think that was what I said, but the Box obviously thought that it is such an important point that everyone should understand that.

[Lord Patel]

My Lords, what the Minister said in response to my question is clearly recorded, so we can all read it. As I understood it, I thought he said that once the health surcharge—let us say it is £200—is paid, for the duration of their legitimate stay in this country all health services will be available to them.

[Lord Taylor of Holbeach]

It is a per annum charge, so if they are here for three years and are not a student it will be three times £200. But yes, that is exactly right.