Immigration Act 2014 (Residential Accommodation) (Maximum Penalty) Order 2023

Lord Ponsonby of Shulbrede Excerpts

Tuesday 16th January 2024 Grand Committee

[Lord German (LD)]

I repeat the question I ended with: what is the evidence that this policy has had the desired impact on deterrence since it was introduced in 2014? Last week, I spent some time with a third-sector body that provides support for those with the right to remain in the United Kingdom. I heard direct evidence that, in the competition for rented accommodation, landlords are opting to choose a tenant where there is no need to go through the right to rent checking process and risk a fine. They are opting for someone who can provide the simplest proof of their right to rent. Increasing penalties by so much increases this risk of outlying those who are from a different category of people. It is particularly hurtful because it impacts very much on the bottom end of the rented market sector.

Paragraphs 22, 24 and 43 of the economic note are very instructive to understanding the strength of the evidence. Paragraph 22 says that there is “uncertainty”, paragraph 24 talks about “limited certainty”, and paragraph 43 says that “limited evidence” is available. Is that evidence available?

Secondly, what enforcement action is there against employers and landlords who discriminate against potential employees or potential renters on the basis of nationality or any other protected characteristic? How often has that enforcement been used? In the current housing crisis, where there are many renters for each rental property, to what extent is this policy increasing the barriers for the non-white British population legally in the United Kingdom to access housing?

The Home Office’s equality impact assessment associated with the instruments says:

“Any indirect impact is the result of an employer or landlord choosing to discriminate for which a remedy is likely to be available to the individual under the Equality Act 2010”.


Recently, I saw a sign in a rental agency in east London that said simply “no DWP”. Those of us with long memories will remember signs that said, “No Irish, no blacks”. Given the difficulty of providing proof, what data is there, if any, on the number of people who have used the Equality Act remedy? How will the Home Office keep the impact of this policy on race under review, as it states it will do in its equality impact assessment?

Finally, paragraph 25 of the economic note talks about familiarisation and says, basically, “We don’t need to do anything to inform employers or landlords about this because it’s just a small change and they already know about it”. But given the size of this particular increase in fines, it means there is a case, because we do not have the evidence, for ensuring that those who rent or offer jobs understand the importance of non-discrimination in this whole process.

Creating a hostile environment for those who have been granted leave to remain and who want to contribute to our economy is not an outcome that I would support. I hope the Minister would agree.

[Lord Ponsonby of Shulbrede (Lab)]

My Lords, on the draft immigration order for employment of adults subject to immigration control, the Labour Party supports the principle of preventing those with no legal right to reside in the UK undertaking paid employment here and implementing penalties that act as real deterrents for employers who deliberately break the law, so we will support the increasing of the penalties from £15,000 to £45,000 per worker for a first offence. However, given the potential impact on employers, the lack of consultation with businesses, especially small businesses, is disappointing. We would argue that it demonstrates, yet again, the lack of a clear, thought-out strategy towards immigration and tackling illegal work.

The draft order on residential accommodation would increase from £3,000 to £20,000 the maximum penalty for renting a property to someone who does not have the right to rent in the UK. Again, there has been a lack of consultation. I repeat the point made by the noble Lord, Lord German: there are known unintended consequences of right-to-rent checks and penalties for breaches. Landlords are keen to avoid large penalties and might discriminate against British nationals and lawful migrants who have the right to rent but who, perhaps because of their race or nationality, face discrimination and difficulty in getting those rentals. The noble Lord asked how this is monitored: is it done through the Equality Act, which is the remedy for landlords who are discriminating against legal people trying to rent? What are the Government doing to monitor this situation and what levels of enforcement are there against landlords who illegally discriminate against particular groups of people?