Labour and Skills Shortages: Temporary Recovery Visa

Rachael Maskell Excerpts

Tuesday 8th November 2022 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mrs Cummins, and I thank the hon. Member for Westmorland and Lonsdale (Tim Farron) for securing a debate of such importance for my city of York. I will focus mainly on the hospitality sector, but I will also stray into a few other sectors where we are certainly experiencing skills shortages.

To realise York’s potential productivity, and ultimately the value of the pound, we cannot stand still, which is why the debate is timely. We need to move forward by putting pragmatism ahead of ideology in order to understand the reality of particular sectors and local economies across the country, to focus on the data, which speaks so loudly, and to listen to sector leaders across our communities to ensure that their aspirations for their industries can be realised, and that we are not left short of potential opportunities that people want to bring to the economy.

On Friday, I met York’s hospitality sector leaders—people from hotels, visitor attractions, restaurants and others—to talk about the challenges that we face in our city. Of course, the issue of skills shortages was high on the agenda. We have 1,605 enterprises in York’s hospitality sector, which employs 20,000 people, two thirds of them part time. It is growing, which is encouraging. Our “Skills for Employment” strategy—a 10-year plan for skills that Lee Probert, the principal of York College, assembled for our city—highlights the fact that the sector grew by 7.8% between 2017 and 2020, so we have a great opportunity to consolidate it. However, many places cannot open their doors full time, and with the cost of living crisis hitting hard, businesses are struggling and we need to ensure that we get the labour. They live hand to mouth with the innovation that they are able to bring. They got to the summer, got to half term, and they are going to get to Christmas, but, come January, they are worried not only about the great freeze, but about the freeze in business itself. They are really worried about that, and I hope the Minister will talk to his colleagues in the Department for Digital, Culture, Media and Sport about the cliff edge that the sector faces.

People in the sector do not want to limp from season to season. They want to be able to plan. When they plan, they can put in place their skills strategy. When they plan, they have the headspace and can grow their industry, whether in the supply chain or directly facing their customers. We therefore have to build resilience into the system. We are fortunate. We have around 40,000 students across York, which helps to address some of the capacity issues, but not by itself.

Some businesses are doing incredible work. The Grand in York has taken refugees from Ukraine and supported people into employment, ensuring that there is a labour supply. It has also provided wider skills, including language courses, and has provided support even if people then move elsewhere in the sector. That is a positive sign of a good employer with the ability to invest, but not every employer has the margins to be able to do that.

In York, we have a skills strategy for 10 years in the city, but it will not be enough when we are near 100% employment. That is why we need to look further afield to ensure that we have a supply of labour coming into the city.

The Yorkshire hospitality sector has put together a three to five-year plan, looking at the cliff edges in front of it and highlighting the fact that only 5% of young people see a future in the hospitality sector. Again, we need to ensure that we have a supply of labour. The sector is using innovation as much as possible, with skills camps and academies in order to deliver so much more, but the workforce is not sufficient. That is why I turn, as other colleagues have, to the report by the Select Committee on Digital, Culture, Media and Sport. It highlights the scale of vacancies across the economy now, so we know we cannot stand still on this issue.

The youth mobility scheme is excellent. It gives young people the opportunity to come to the UK, learn the language and skills and have vital life experience. When we look at the list of countries we have heard about today—Japan, Australia, New Zealand, Iceland, Hong Kong, India, Canada, South Korea, Monaco, San Marino and Taiwan—we do not have any EU countries on that list. With regard to the aim of bringing 1,000 people over to the UK, if we compare San Marino’s population of 34,000 with the EU’s 446.8 million, the Government’s thinking seems to demonstrate a disparity. We need the movement of young people to be expedited so that they come and support our economy and our labour market, and see that investment in their future and our future, too. It is a perfect scheme that would work for my city of York, where people can really enjoy the sector.

We do have a challenge, and I am going to be very straight and honest about this. As has been mentioned in this debate, we need sufficient housing, and we need to address that urgently because of the cost of living in York and the Airbnb situation. The flipping of private rented accommodation into Airbnbs means that we need to ensure we have suitable housing for people when they come and give to our local economies. We must have systems in place to support the city.

I want to highlight an opportunity to the Minister. I know he is working hard on the issue of those seeking asylum in the UK, but these people come with skills. That is why I ask him to look at the shortage occupation list to see whether we can passport people with skills into the economy, so that we can utilise the skills that people bring and ensure that we are not experiencing labour shortages in certain areas.

York is about to receive 450 people into a hotel in the city. They will get an incredibly warm welcome and lots of support from the infrastructure within York. We will provide people with a home for as long as they are with us. However, if they are not able to work, that is a missed opportunity for them and for us. That is why we need to ensure that we enable people to both utilise and gain skills while they are with us. We recognise that people need time to get oriented and to heal their trauma, but engaging in good employment will give them the opportunities that they need and that our city needs. It is such a waste of talent, skill and life if people are just waiting in hotels for their claims to be processed. We want that process to be expedited, but while they wait, we welcome their employment across our industries. Those people then build relationships in the city, which gives greater security not only to them but to all of us. I hope that the Minister will bear that in mind and ensure that there is more opportunity for those individuals in future.

The tourism and hospitality sector has the advantage that it can use its resources to pay staff slightly more than other sectors. As a result, people have been sucked out of the care sector. Indeed, I will end by speaking about the care sector. The scale of vacancies is affecting the delivery of social care and the ability to discharge patients from hospital. That means people cannot get in the front door and we have an NHS crisis. Not being able to bring care workers into the UK because they do not fit into the points-based system seems completely ludicrous and self-defeating.

I trust that the Minister will look specifically at social care and the opportunity to bring highly skilled staff to the UK to deliver that vital role, so that all our constituents can have the care that they need, as we would expect. Not only are we in a crisis now, with 165,000 vacancies in social care nationally; given that 28% of care workers are over the age of 55, will have a greater crisis in future. That must be sorted out. I trust that the Minister will look at ways in which we can bring in young people and other people with skills, albeit for the short term, until we have the labour supply. However long it takes, we need to address those crises.

I am calling for pragmatism over ideology. I am sure the Minister understands that our communities must be heard and that the skills they require must be met. It is for him to deliver that.

--- Later in debate ---

[Anne McLaughlin (Glasgow North East) (SNP)]

I am pleased to serve under your chairwomanship, Mrs Cummins. I thank the hon. Member for Westmorland and Lonsdale (Tim Farron)—he comes from a beautiful part of England—for highlighting this crucial topic. Much like a lot of Scotland, his constituency faces the problems of rurality and the challenges of supporting a hospitality industry plagued by labour shortages.

It has been interesting to hear the many views on how we can tackle the issue of labour shortages post Brexit and post covid, especially given the divergence in the types of constituencies we represent, each with its own unique set of labour challenges, be they in agriculture, hospitality, fishing—we have heard extensively about fishing today—transport, construction, health and social care, logistics or food processing. The list goes on, but the core issue at heart remains the same. We have witnessed the doors slam on free movement, which is now a dirty word—well, two dirty words—for both the UK Government and the official Opposition. In addition, the global pandemic saw more than 1.3 million EU workers return home. When they finally thought about coming back, they were locked out by this Government’s hugely regressive post-Brexit points system.

If we had stayed in the single market, as the majority of people in Scotland voted to do, free movement would be the perfect solution to the many labour shortages across these islands. It will come as no surprise to hear that I am confident that Scotland will rejoin the EU—and that means the single market—as an independent member soon. Until then, we fully support the call for solutions to labour shortages through visa schemes, including a temporary recovery visa.

This is a crisis of the Government’s making. It was completely avoidable. It is a crisis caused by policy, politics and a rhetoric on immigration that is fuelling the right, stirred up by inflammatory language from the Home Secretary. I cannot tell hon. Members how shocked and disgusted I was to hear the Home Secretary refer to an “invasion” of immigrants to these shores. An invasion—really? “Invasion” conjures up images of insects, wild animals, wars and battles. It is far removed from the reality of the humanitarian crisis that we are witnessing in the channel.

The Minister could argue that the Home Secretary was not talking about migrants per se, just those crossing the channel—I do not think he will—but it is not acceptable, whoever she was referring to. The Home Secretary must understand that using that kind of language and stoking up fear about one set of migrants has an impact on all migrants. That includes the current and future migrant workers that the UK is absolutely dependent on.

It has taken empty shelves and closed restaurants to bring this issue to the public’s attention, but business leaders have been warning the Government for quite some time about the dire situation that they would find themselves in because of these shortages. The British Chambers of Commerce has said that of 5,700 businesses, more than 60% need to find more staff in the UK. Kate Nicholls, the chief executive of UKHospitality, pointed out that one in five workers has not returned after furlough, giving the sector a 10% vacancy rate. She agreed with the recommendations from the Digital, Culture, Media and Sport Committee for a temporary recovery visa, and said:

“This would go a long way to helping recruitment challenges and would support the sector’s ability to provide fantastic service to all its customers. We would strongly urge the government to consider its introduction as part of a pro-growth review of immigration policy.”

Three quarters of UK businesses have said that they are experiencing difficulties filling vacancies. I have received numerous letters from businesses in my constituency that are struggling to get staff and asking what exactly the Government plan to do about it. There is another reason to ensure that we fill those vacancies. As the CBI said recently,

“Guarding against skills and labour shortages can…help keep inflation in check”.

At a time when the cost of living is going through the roof, should the Government not heed that advice?

The Scottish Government have tried to help the UK Government out. The First Minister even offered to split responsibility for immigration policy with them, and proposed a Scottish visa, but that was refused. It would solve some of the economic problems in Scotland, but it clearly does not fit the ideology that says that if the Scottish National party suggests it, it must be wrong. The Scottish Government are determined to address these issues but have very limited powers available to them. They are proposing a rural visa pilot, which offers a community-driven approach to migration that can respond to the distinct needs of remote, rural and island areas.

We want to welcome people, not ward them off, because people make communities and keep our economy growing. It makes no sense to stubbornly believe that we can just do everything ourselves, especially when our rural communities—much like that of the hon. Member for Westmorland and Lonsdale, I am sure—face population decline.

Many of the initiatives from the UK Government are very temporary. I understand that the solution is not complete permanence, but they are so temporary that they offer no real certainty for businesses or workers. They are simply sticking plasters. That is the crux of the issue with so much policy at the moment—the short expiry dates. I have had milk that has lasted longer than some of the previous Cabinet’s plans. I hope this one does better.

Business, industry and the workers themselves need certainty. I have been trying to hammer home that point in relation to the six-month energy relief scheme that is on the table for SMEs, public sector organisations and charities. They simply cannot operate in weeks and months. Last year, we saw a three-month visa offered to HGV drivers. What good is a three-month visa? Who in their right mind would move to a country where they face being kicked out in 12 weeks’ time? That is a point that I would like to make to Labour colleagues. I am not going to go into how crushed I felt when I heard the Labour leader say that we have too many migrants working in the NHS, though I know I was not as crushed as the migrant workers themselves. Today, Labour’s shadow Health Secretary, the hon. Member for Ilford North (Wes Streeting), said that if they got into power, they would keep migrant workers in the NHS until they had enough home-grown workers trained for the health service.

[Rachael Maskell]

I worked in the NHS for 20 years and all I will say is that I know the value of working alongside people who have trained across the world. They bring their skills into the NHS, and it has been a privilege to work alongside them. I think we should aspire to recognise the skills they bring and the opportunities that provides for our patients.

[Anne McLaughlin]

I really do thank the hon. Lady for that. There will be so many migrant workers who have worked their backsides off in the NHS, especially during the pandemic, and who will be devastated about what has been said, but the hon. Lady’s remarks go some way towards balancing that out.

I have to ask: what kind of arrogance does it take to believe that doctors, nurses, radiographers and others are so desperate to be here in the UK that they will fill the positions that we desperately need to be filled in the NHS, knowing that when they are surplus to requirements, they will simply be dispensed with because both Tory and Labour Governments would much prefer the jobs to go to those who were born here? Employment is a two-way thing. Migration is a two-way thing. If we do not meet migrants halfway, they will not come and we will not be able to look after people. Everybody needs to think clearly about that.

We need solutions and ideas. One solution that has been put to the Home Office, certainly by my party—indeed some of my colleagues have private Members’ Bills on it—and other colleagues today, is to allow asylum seekers to work. We are facing labour shortages, yet we have tens of thousands of people who are already here, desperate to contribute and integrate with our communities, but they are cut off and left to rely on meagre handouts from the state.

The current situation plays into the hostile environment rhetoric so well. To paint asylum seekers as economic migrants here for benefits is just not true. Nobody wants to live on less than £6 a day, and people should not be put in that situation. Given that 76% of asylum applications are allowed on the initial decision, not to mention the many more who win their appeals, we are putting thousands of people in an enforced limbo when they could easily be contributing, paying tax and filling the gaps in our labour market.

I would like to know if the Government have any plans to consider this eminently sensible solution. As the hon. Member for Westmorland and Lonsdale said, there is no downside. If the Minister’s answer is, “No, we are not going to consider this solution,” he must see a downside, and he must tell us what he thinks that is. My preference, and my fervent hope—I saw him nodding his head earlier when it was mentioned—is that he agrees to look into allowing asylum seekers to work and plug the damaging gaps that are holding the economy back.