Non-EU Citizens: Income Threshold

Stuart C McDonald Excerpts

Monday 7th March 2016 Westminster Hall

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

It is a pleasure to serve under your chairship, Ms Vaz. I, too, welcome the debate and am genuinely pleased to see the degree of engagement on this issue that use of the petitions facility has generated, not just in terms of numbers, although they are at first glance pretty remarkable, but in terms of the quality of submissions made possible through Parliament’s Facebook account. I also welcome the contribution of the campaign group Stop35k in engaging with those affected and making their voices heard.

We have heard some excellent speeches this afternoon, and I am pleased to see so many of my hon. Friends present. A lot of good points have been made. As my hon. Friends the Members for Glasgow North (Patrick Grady) and for Edinburgh East (Tommy Sheppard) pointed out, it is important to focus on the specific issue we are debating. It is not yet—thankfully—about raising the threshold for people who are coming here. People are being allowed to come here and take up jobs at a certain salary level that no resident could be recruited to do, but when those people put down roots, a huge extra salary hurdle is put in their way before they are able to gain settlement.

There are so many strong arguments in support of the petition and they broadly fall into two categories. The first is that the introduction of the new £35,000 salary requirement will cause a hell of a lot of pain. As some of my hon. Friends have argued, the second is the question of why we would want to inflict that pain. What is it all for? The answer seems to be that it is not for very much at all. I will take those two sides of the coin in turn.

The threshold will cause pain and, most importantly, distress and upheaval for so many people who have made their homes and built their careers in the UK over several years. My hon. Friend the Member for Glasgow North mentioned a powerful constituency case. Indeed, so many individuals will have their lives, plans and dreams turned upside down by the new provisions. Parliament’s Facebook page and case studies provided by Stop35k have allowed those individuals to explain their personal experiences. I will add another two or three examples that I spotted when looking at Parliament’s Facebook page this afternoon.

A typical example is Shannon, who has been here for more than seven years and who, but for the changes, would be eligible for indefinite leave to remain in a year. She studied at Imperial College London and has worked ever since on a tier 2 visa, doing very good work for a charity based in central London that communicates original science and development news and analysis aimed at helping the global south. She says,

“I don’t have anything anywhere else. I hope you can help skilled people like us stay in our homes and continue contributing making the UK as unique as it is.”

Megan has three university degrees and works in the international development sector, in which, as my hon. Friend the Member for Glasgow North mentioned, very few jobs pay more than £35,000. She supports herself comfortably and presents no burden whatever to the UK system, but the rule means that she could be forced to leave. She argues:

“This £35k threshold determines the worth of an individual based solely on income rather than contribution to society, which is not just inhumane—it’s shortsighted. The UK will lose essential staff like nurses, teachers, and care workers, and for what?... I sincerely hope that Parliament will think better of this foolish, knee-jerk policy.”

Those case studies point out that people put down roots over time so the UK becomes home, and they illustrate the excellent contribution that those people make to our economy and society. Some might argue that people should have known that this was coming, but it is clear that many just simply did not know. One contributor to the Facebook page was pretty typical in saying:

“When I immigrated to the UK almost five years ago, there was no £35,000 rule…So the ‘deal’ I signed up for has been RADICALLY changed, but only after I uprooted my family and committed to this country…It’s iniquitous, in my opinion, to entice an immigrant with one set of rules, and then rip the rug out from under them like this.”

That point was also eloquently made by my hon. Friend the Member for Edinburgh East.

Even if people were aware of the rule changes that were provisionally announced in 2011, they cannot refrain from getting on with life and they cannot make a conscious choice to not put down roots, make friends, or build up a home and private life here. Nor can we stop folk having the ambition of meeting the £35,000 threshold by the end of their visas.

First and foremost, the Scottish National party condemns the impact that the provision will have on the individuals who are directly affected. Beyond that, we need to consider the impact it will have on the businesses and public services that employ those people. We are talking about teachers, classical musicians, IT workers, software engineers, professional ballet dancers, chefs and cooks, carers, media workers, biomedical and technological researchers, and many people with jobs in science and research, including in the NHS. We are talking about start-ups, employees of which will often earn less than £35,000 but will make a significant contribution to innovation and economic growth.

We are still concerned about nurses, as my hon. Friend the Member for Glasgow North West (Carol Monaghan) pointed out, despite the Government’s temporary sticking plaster of using the shortage occupation list. Prior to that move, 3,365 nurses working in the UK potentially would have had to leave the country, with a recruitment cost implication of £20 million for the NHS. The Royal College of Nursing pointed out that there was a steep percentage rise in non-EU admissions to the Nursing and Midwifery Council register in 2015. If nursing is removed from the shortage occupation list again, the figures for future years are potentially even more worrying, particularly if overseas recruitment continues to rise as a result of a shortage of home-grown nurses and a crackdown on agency nurse spending. A stopgap answer for the NHS is not sufficient, but at least it has a stopgap measure—the other industries mentioned cannot rely on any such measure.

As several of my hon. Friends have argued, a one-size-fits-all policy is being used where, yet again, it is entirely inappropriate. As my hon. Friend the Member for Rutherglen and Hamilton West (Margaret Ferrier) said, one size is being designed to fit all industries and jobs. The Government are also trying to make one size fit all nations and regions—a point made well by my hon. Friend the Member for Edinburgh East. One size simply does not fit all.

My hon. Friend the Member for Glasgow North highlighted the UK Government’s estimate of the damage to the UK economy of several hundred million pounds. Of course, the Migration Advisory Committee estimated that the cost to the UK economy would, in fact, be not far short of £800 million. The word “bonkers” springs to mind.

There will be personal pain, pain for business and public services, and economic pain, and for what? It is hard to find an up-to-date assessment of the numbers of people who will be affected but we are talking about comparatively small numbers in the grand scheme of things, particularly after various exceptions and exemptions are considered. Even the Government’s defence and response to the petition appears half-hearted, saying that the move

“is intended to make a modest contribution to the Government’s target of reducing net migration to sustainable levels.”

If the so-called gain is accepted, even by the Government, to be a modest one, why on earth inflict so much pain?

[Patrick Grady]

Is not the point that it is not really a modest measure, but a desperate one? The Government are so hidebound by this arbitrary target they have no chance of meeting that they will stop at nothing, even if it is at a cost to the economy and to people’s personal lives.

[Stuart C. McDonald]

I absolutely agree. One word that could be used is “tokenism”. Someone described the measure to me as “immigration theatre”; it is all in pretend pursuit of the so-called target that my hon. Friends the Members for Glasgow North and for Edinburgh East ripped to pieces. No one believes that the target is a genuine one. I think the Government recognise, to some extent, the ridiculousness of the move—hence the creation of an exemption for those whose job has been on the shortage occupation list at any time in the six years prior to a settlement application. There is an exemption for migrants who work in a PhD-level occupation, and for those who have a tier 2 minister of religion visa or a tier 2 intra-company transfer visa. With so many large exemptions and exceptions, should not the rule that we are creating those exceptions for be considered absolutely absurd?

As my hon. Friend the Member for East Renfrewshire (Kirsten Oswald) rightly asked, what assessment has been done of the displacement effect of the change? Will not the lives of thousands of non-EU citizens be disrupted, only for so many of them to be replaced with fresh migrant employees? If so, what on earth is the point?

The Home Office’s 2012 impact assessment states:

“The goal is a smarter, more selective, more responsive system that commands public confidence and serves the UK’s economic interests.”

In fact, all the signs are that the measure will have a negative economic impact and will undermine, yet further, any confidence that the public has in what the UK Government are doing on immigration.

I know that the policy was inherited by the Minister for Immigration and I know that his hon. Friend, the Under-Secretary of State for Refugees, who is responding for the Government today, has had nothing to do with it either. I wish that they would ditch it not only as singularly unhelpful, but as harmful and hurtful for all concerned.