The Minister of State, Home Office (Baroness Neville-Jones)
My Lords, with the leave of the House, I should like to repeat a Statement made in the other place.
“With permission, Mr Speaker, I would like to make a Statement on immigration.
Controlled migration has benefited the UK economically, socially and culturally, but when immigration gets out of control, it places great pressure on our society, economy and public services. In the 1990s, net migration to Britain was consistently in the tens of thousands each year, but, under Labour, it was close to 200,000 per year for most years since 2000. As a result, during Labour’s time in office, net migration totalled more than 2.2 million people, which is more than double the population of Birmingham. We can’t go on like this.
It is our aim to reduce net migration from the hundreds of thousands back down to the tens of thousands. To achieve this, we have to take action across all routes to entry— work visas, student visas, family visas—and to break the link between temporary routes and permanent settlement.
On the work routes, all the evidence shows that it is possible to reduce numbers while promoting growth and underlining the message that Britain is open for business. After consulting widely with business and with the Migration Advisory Committee, I have decided to reduce economic migration through tiers 1 and 2 from 28,000 to 21,700. This would mean a fall of more than a fifth compared with last year in the number of economic migrants coming through tiers 1 and 2, excluding intra-company transfers.
Business groups have told us that skilled migrants with job offers, tier 2, should have priority over those admitted without a job offer, tier 1. I have therefore set the tier 1 limit at 1,000, a reduction of more than 13,000 on last year’s number. Such a sharp reduction has enabled me to set the tier 2 limit at 20,700, an increase of nearly 7,000 on last year’s number.
The old tier 1, which was supposedly the route for the best and the brightest, has not attracted highly skilled workers. At least 30 per cent of tier 1 migrants work in low-skilled occupations such as stacking shelves, driving taxis or working as security guards, and some do not have a job at all. So we will close the tier 1 general route.
Instead, I want to use tier 1 to attract more investors, entrepreneurs and people of exceptional talent. Last year, investors and entrepreneurs accounted for fewer than 300 people. That is not enough. So I will make the application process quicker and more user-friendly, and I will not limit the number of those wealth creators who can come to Britain.
There are also some truly exceptional people who should not need sponsorship from an employer and whom we would welcome to Britain. I will therefore introduce a new route within tier 1 for people of exceptional talent—the scientists, academics and artists—who have achieved international recognition or are likely to do so. The number will be limited to 1,000 per year.
Tier 2 has also been abused and misused. Last year, more than 1,600 certificates were issued for care assistants to come to the UK. At the same time, more than 33,000 care assistants who are already here were claiming jobseeker’s allowance. I shall restrict tier 2 to graduate-level jobs.
On intra-company transfers, we have listened to business and will therefore keep those transfers outside the limit. However, we will set a new salary threshold of £40,000 for any intra-company transfers of longer than 12 months—recent figures show that 50 per cent of intra-company transfers meet those criteria. This measure will ensure that those coming are only the senior managers and key specialists that international companies need to move within their organisations.
I thank the Migration Advisory Committee for its advice and recommendations. Next year, I will ask the committee to review the limit in order to set new arrangements for 2012-13.
However, the majority of non-EU migrants are students. They represent almost two-thirds of non-EU migrants entering the UK each year, and we cannot reduce net migration significantly without reforming student visas. Honourable Members might imagine that by ‘students’ we mean people who come here for a few years to study at university and then go home. But nearly half of all students who come here from abroad come to study a course below degree level, and abuse is particularly common at these lower levels. A recent check of students studying at private institutions below degree level showed that a quarter could not be accounted for. Too many students at these lower levels have come here with a view to living and working rather than studying. We need to stop that abuse. Therefore, as with economic migration, we will refocus student visas on those areas which add the greatest value, and where evidence of abuse is limited.
I will shortly be launching a public consultation on student visas. I will propose to restrict entry to only those studying at degree level, but with some flexibility for highly trusted sponsors to offer courses at a lower level. I will also propose to close the post-study route, which last year allowed some 38,000 foreign graduates to enter the UK labour market at a time when one in 10 UK graduates were unemployed.
Last year, the family route accounted for nearly 20 per cent of non-EU immigration. Clearly, British nationals must be able to marry the person of their choice but those who come to the UK must be able to participate in society. From next week we will require all those applying for marriage visas to demonstrate a minimum standard of English. We will also be cracking down on sham marriages and will consult on extending the probationary period of settlement for spouses beyond the current two years.
Finally, we need to restrict settlement. It cannot be right that people coming to fill temporary skills gaps have an open access to permanent settlement. Last year, 62,000 people settled in the UK on that basis. Settling in Britain should be a privilege to be earned, not an automatic add-on to a temporary way in. So we will end the link between temporary and permanent migration.
I intend to introduce these changes to the work route and some of the settlement changes from April 2011. I will bring forward other changes soon after. This is a comprehensive package that will help us to meet our goal of reducing net migration at the same time as attracting the brightest and the best and those with the skills our country needs. This package will serve the needs of British business. It will respond to the wishes of the British public. It will give us the sustainable immigration system that we so badly need”.
My Lords, that concludes the Statement.
Lord Hunt of Kings Heath
My Lords, I thank the Minister for repeating the Statement and for clarifying the confusion caused by the misleading leak of the contents of the Statement to the BBC this morning—not the first time that that has happened.
I am sure that the Home Secretary is right to say that migration has made, and continues to make, a significant contribution to the economic vibrancy, business strength and social vitality of our country. She is also right to say that it is essential that migration is properly controlled for reasons of both economic well-being and social cohesion. The question is: how does one achieve that? Over the past few years, the Labour Government put in place transitional controls on EU migration, a suspension of unskilled work permits, a tough but flexible points system to manage skilled migration, tighter regulation of overseas students leading to the closure of 140 bogus colleges, and new earned citizenship requirements for those seeking settlement.
At the general election, the leader of the Conservative Party proposed to go further in two key respects. First, he proposed a new target, reaffirmed in last week’s debate in the other place by the Parliamentary Under-Secretary, to reduce net migration to tens of thousands by 2015. To meet that target, he pledged a cap on immigration which he said would be tougher than the points system. At the time, the leader of the Liberal Democrats said that they did not come up with promises like caps which did not work; he then agreed to the cap in the coalition agreement.
Since then the Government have been in wholesale retreat and today they are in some confusion. The CBI, the chambers of commerce, universities, Nobel prize winners, UK and foreign companies—large and small—have all highlighted the huge damage the Government’s proposals mean for business investment, research and job creation.
The Home Affairs Select Committee in the other place, and the Migration Advisory Committee, have highlighted that the proposed cap not only excludes EU migration but covers only 20 per cent of non-EU migration, with overseas students and family members being outside the cap entirely. At the weekend, the business editor of the Sunday Telegraph wrote that the Government’s “ill considered immigration cap” has had,
“the bizarre result of causing substantial problems for Britain's leading businesses whilst at the same time having only the most minor of impacts on the number of people actually coming to the UK”.
We have had the sight of the Prime Minister hinting at concession after concession in the face, we read, of opposition from the Home Secretary. But, then again, thanks to the excellent public lobbying and guerrilla tactics of the Business Secretary, the Home Secretary has now come to the other place to confirm the details of that retreat.
While we will need to keep a close eye on how our proposals will affect business and science, we certainly join business representatives in welcoming the decision to exempt intra-company transfers of workers. What has caused the confusion is this morning’s briefing to the BBC that the total cap would be 42,700 work permits. I understand that mid-morning the Home Secretary’s officials had to clarify to the Press Association that there is no such cap on that scale. My understanding from the Statement, as the noble Baroness has repeated, is that the Home Secretary will allow 21,700 tier 1 and 2 work permits, but with no cap on migration due to intra-company transfers. I ask the noble Baroness what the overall reduction will be as a result of the so-called cap announced today. If the number of intra-company transfers goes up, can the noble Baroness tell the House whether she will then put in place an offsetting cut in tier 1 and 2 permits? If not—and I know business representatives will very much hope that the answer is not—can she confirm that the supposed cap is in fact just a guess; a fig-leaf and no cap at all? This is a policy designed for an election campaign, but not suited to the reality of Government or the actual long-term interests of the UK.
Given her Permanent Secretary’s revelation this morning that her department will lose 9,000 jobs—the bulk of which will be in the UK Border Agency—is the Minister confident that she will have enough resources to enforce her migration policy and keep our borders secure?
On family reunification, the Statement had nothing new to say. No estimate was given to the House of how many fewer visas she will need to grant by 2015 to meet the Prime Minister’s target. On overseas students, we are promised another consultation and, again, with no estimates. Why is that? Could it be that the Prime Minister is simultaneously travelling to countries of the world, inviting students to come to Britain to study and the Business Secretary is telling our universities that they can live with an 80 per cent cut in teaching budgets because they can mitigate the loss with fees from overseas students? Is that the position?
I would also like to ask the noble Baroness whether it is still the objective of the Prime Minister and the Government to cut net migration to the tens of thousands by 2015. I notice that in the Statement the goal was repeated but we no longer get the date of 2015. Can the noble Baroness reaffirm that the 2015 promise still stands? It is a simple question: is the tens of thousands pledge still binding by 2015?
Baroness Neville-Jones
My Lords, I, too, listened to the debate in the Commons and I note that the Speaker did not admit the proposition that there had been a leak from the Home Office. I do not believe that there was a leak from the Home Office. This is not an instance that can be cited in that direction.
The noble Lord asked a number of questions—
Baroness Neville-Jones
I am glad that the noble Lord agrees with the proposition that migration needs to be controlled. I will deal with his points about targets. We do indeed stand by the target of cutting migration to tens of thousands by the end of this Parliament, and we believe that the UK Border Agency will have the resources to ensure that it plays its part in bringing about that conclusion.
As for whether the limits serve the economic interests of the country, I note that the Daily Telegraph wrote its article before the Statement was made. Since my right honourable friend made the Statement—which, I might say, is the outcome of consulting, not of confusion—the CBI has expressed its satisfaction with the new system, which it believes will serve the economic interests of the country. Therefore, I believe that neither the charge that we are not listening nor the charge that we are confused stands examination.
On the question of intra-company transfers, our objective is to ensure that companies can transfer the people whom they need. That is why we have not put a limit on intra-company transfers. We will monitor intra-company transfers and look at how the process for that particular category of people goes. For instance, if need be, we will look at whether qualifications such as the level of salary are needed for intra-company transfers. However, we do not intend to relate that particular tier to other tiers. It is clear that we take the view that, after consultation with industry, it is important that companies have that flexibility. That means that, in other areas, we will also look at the limits that have been set for the time being, as indicated in the Statement.
Baroness Neville-Jones
On family migration and language, I entirely agree with my noble friend that you best learn the language when you are in the country. We are not demanding anything more than the lowest possible level of competence by way of an entry requirement, but we believe that it is necessary to insist that integration and the ability to participate in society are objectives that everyone who comes to this country should share. We believe that the capacity to communicate in the language is an absolutely fundamental requirement.
On the question of carers and skills, we will monitor the whole issue of skills shortages. Clearly, it does not make sense for us to impose limits in areas where there are skills shortages. However, as I said in the Statement, caring is not currently an area where a skills shortage arises. Nevertheless, my noble friend makes a good point that, if there is a lack of specialist skills within the caring profession, those could fall to be considered under a skills shortage category.
Lord Tomlinson
My Lords, I declare an interest as chairman of the advisory board of the London School of Commerce, which is a private sector college with highly trusted sponsorship status. I also declare my position as vice-chairman of the board of Anglia Ruskin University, which is a state university.
I broadly welcome the part of the Statement that deals with students because it avoids the major elephant trap, which has been around for quite a long time in higher education, of merely reiterating the mantra, “Public sector good, private sector bad”. That is wrong on both sides of the equation. Some of our universities are not particularly good, and some of our private colleges are extremely good. I think that the Statement more or less strikes the right balance, so I welcome it on those grounds.
The Minister is right to identify the number of students who come here to study at below degree level as a major problem, but what plans do the Government have to copy the best of the private sector in monitoring the continuous attendance of students at courses? At our college, we have brought to the attention of Home Office officials—we have invited them to come and visit—our system of digital identification, which gives us a link with students that means that it is not a surprise to find that all students are in attendance and we can be aware of their non-attendance within days rather than weeks.
Finally, given that the Minister’s department has been in consultation with the sector almost continuously for the past five or six years, does she agree that the consultation should now be concluded fairly quickly? What is needed in both the public and the private sector is a period of stability in higher education, so that institutions can recruit students in the knowledge that the students will be able to attend. The modern practice of public and private working in partnership should surely be able to continue unabated by fears about the ability to get visas.
Baroness Neville-Jones
I am grateful for the noble Lord’s welcome of the general proposition that we have laid out.
On the noble Lord’s first point about the monitoring of educational establishments, including those that are in the category of highly trusted sponsor, there will indeed be monitoring. I think that monitoring is already in place for many schools that have had to register in order to be providers of English language teaching. The monitoring of attendance, of the qualifications awarded and of the compliance of the institution in meeting its obligations under its sponsorship arrangements will indeed be carried out and spot checks may occur. I think that all institutions will be on notice that their obligations need to be taken seriously. Of course, if institutions do not take those seriously, they will lose their sponsorship status.
On the noble Lord’s second point, we entirely accept that those who want to bring people into this country, whether for study or for employment, need to know where they stand. My right honourable friend the Home Secretary has made it clear that she wants to get through the next stage—clearly, a big block of migrant movement is by students, who are, at something like 51 per cent, by far the biggest category of migrants—as soon as possible. Progress must, if I may say so, be consistent with having a proper consultation on how to do that, but the object will be to conclude that consultation so that we can put in place a system—and a level—that is reasonable and that serves the interests of this country.
Earl Attlee
There is plenty of time. Let us have a Conservative and then a Liberal Democrat.
Lord Lucas
My Lords, I am grateful. I am delighted that there is to be a consultation on students and I hope that the noble Baroness will feel able to include me in that consultation as editor of the Good Schools Guide and let me know who else is being consulted. I very much hope that it will include all further education institutions, private and public. I regret the derogatory tone taken about that sector in the Statement; many good-quality institutions provide excellent courses below degree level, which are in great demand throughout the world. We should export a strong and large export industry employing many people in this country. I agree that it should have quality controls and that the previous Government were remiss in completely failing to install the sort of system that has just been talked about, but we should be positive about the sector and support it as there is a great deal of good there and a great deal of employment.
Baroness Neville-Jones
My Lords, I think that that sentiment would be widely shared in the House. It is certainly shared in the Government. If the consultation that has just been conducted on the employment sector is anything to go by, the House can be confident that this consultation will also be wide-ranging and thorough. In this particular consultation with business, we talked to something like 30,000 individuals and had something like 3,000 responses, which I understand was a record for this kind of consultation, speaking to upwards of 1,000 employers. I lay that on the line because it indicates that we have been a listening Government and far from a confused one. We will do the same in other sectors.
Lord Judd
Does the Minister agree that we should not simply acknowledge the contribution made by migration to this country but, across the political divide, warmly thank migrants for the tremendous contribution that they have made to the well-being and health of this country? Would she agree, too, that some pretty crude contradictions are inevitable in an immigration policy? On one hand, we are committed to the principles of a global market and encourage the free movement of goods and capital and the rest; on the other hand, there is no free movement of labour. That is a fundamental contradiction in the theory of the market. Does that not make it essential that we consult across government with all relevant departments about the compensatory measures needed in development policy, international financial policy and international economic policy for this distortion in the market? While doing that, how far do the Ministers with immediate responsibility discuss with colleagues in DfID the implications of a policy that seems to give priority to those who arguably are the people most needed in their own countries to build up their countries’ economy and provide employment opportunities for a wider cross-section of their populations?
Baroness Neville-Jones
My Lords, it is historically well based to assert that migration has been extraordinarily beneficial to this country. We have had immense advantage out of being an open society. The noble Lord asks whether we could be behaving in ways that disadvantage countries that need to retain their own talent. That is a perfectly fair point that goes to the core of successful development policies—because we do not have successful development in developing countries in the absence of the talent that they need to lead. That is one of the many reasons why we need to break the link between allowing or inviting people to come here and benefit from our education system and possibly taking subsequent employment without using this as a route to settle down here and leave their own countries, where they might benefit their own communities. I take the point absolutely. The policy that we are trying to pursue and that will draw some in—and we wish to see them here—is not designed to deprive countries permanently of their leadership talent.
Lord Maclennan of Rogart
My Lords, in the light of the Minister’s indication that there would be a limit of 1,000 people from scientific, academic and artistic communities and in view of the fact that this country has a high reputation in these fields, is it not a little unwise to announce an inflexible figure? Can she indicate how many people falling into that category have been applying for permits to come into the country? What consultation will she make in future to ensure that the number is sufficient to enable us to maintain our reputation in these fields?
Baroness Neville-Jones
I am trying to find the figure. I think that I am right and, if I am not, I shall correct myself on the record later and write to the noble Lord. My understanding is that 700 are being issued in that category, so the figure of 1,000 is not an unreasonable estimate of what is likely to be needed in this category. Of course, it is entirely without the complication of sponsorship or other qualification. We have sought to respond to the points that were made about our need for great talent to come here, but also to the desire of those who wish to come and work in our global-quality institutions. We will monitor all these figures and, if they turn out to be wrong, I am sure that the Government will want to change the limits. The last thing that this country needs is to impose an immigration policy on itself that does not meet its social and economic needs and benefit the population of the country.
Lord Anderson of Swansea
The proposal on marriage is fine in principle, but my experience is that so often sham marriages can proceed and succeed because there is no check at the end of the period as to whether they are subsisting. What assurance can the Minister give on the rigour of the checks carried out at the end of the two-year period? Otherwise, sham marriages will continue and proliferate.
Baroness Neville-Jones
The noble Lord is right that there is a problem here. We are looking at a possible extension of the period during which a marriage would have to subsist for it to be demonstrated not to be sham. That means that we will have to monitor that to be the case. The announcements being made in context form part of a wider view of how we monitor those who are let into the country and their compliance with the conditions under which they were permitted to enter. In a different context, I recall announcing how we were going to monitor English language schools. That undoubtedly imposes on the immigration system an extra duty when ensuring that terms are being met. However, it will be made very clear to those involved that the penalties for failure to comply are very high.
Viscount Waverley
Could systems be put in place to record those departing UK shores? If not, when might that happen?
Baroness Neville-Jones
That is something that we are working on, but I cannot give the noble Viscount a date because I am not informed of the timetable, but it is certainly a UKBA objective that we record the outward journey.
Lord Brooke of Sutton Mandeville
My Lords, can my noble friend expand a little on the reference to Highly Trusted Sponsors, who might be allowed to offer courses at a lower level—“Highly Trusted Sponsors” having an upper-case H, T and S?
Baroness Neville-Jones
My Lords, I fear we have another abbreviation. I am unable to give my noble friend a great deal of information, but two things are clear. There are already some institutions of extremely good standing that will, by definition, be given such a status and earn this soubriquet. Other institutions will be given time to qualify on the basis of their meeting the conditions of being a trusted sponsor. This involves being part of a reputable institution and having a record both of complying with the terms of the conditions and of being in a proper financial relationship when it comes to paying the necessary amounts for the sponsorship and visas of the individuals involved.
Lord Clinton-Davis
The noble Baroness said that too many students have been coming here to live rather than to study. Will she kindly say on what evidence she formed that view? In particular, can she indicate how many students of that character are doing that? Will she also outline the organisations or persons who have opposed or have reservations about the new regime?
Baroness Neville-Jones
My Lords, I am afraid that I cannot answer the third of those points. I will endeavour to investigate and see whether I can enlighten the noble Lord. I will write to him if that is the case. The abuse of study rights is pretty well documented. There were several cases last summer of organisations and institutions that were, frankly, bogus. They were offering places on non-existent courses to people who had come here with the objective of clearing off and getting employment. We know about this both in the educational context and in one or two terrorist cases. This is not a fiction.
There is also the question of those who may come here, first, as bona fide students but who then stay on and simply become part of the workforce. That is an abuse. On that score, something like 20 per cent of the students who entered in 2008 are still here. That was not the intention and should not be the outcome. Clearly this is neither a mythical nor particularly small category of individuals, and it needs to be controlled.