Immigration and Social Security Co-ordination (EU Withdrawal) Bill Debate

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Department: Home Office

Immigration and Social Security Co-ordination (EU Withdrawal) Bill

Lord Kennedy of Southwark Excerpts
Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Wednesday 30th September 2020

(3 years, 6 months ago)

Lords Chamber
Read Full debate Immigration and Social Security Co-ordination (EU Withdrawal) Act 2020 View all Immigration and Social Security Co-ordination (EU Withdrawal) Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 121-R-II Second marshalled list for Report - (30 Sep 2020)
Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, this amendment was moved by the noble Lord, Lord Green of Deddington, in Committee and my noble friend Lord Rosser responded to that debate. I think it is no surprise that I do not agree with the amendment as worded for several reasons. In particular, I do not believe that it serves the interest of the United Kingdom well. Governments can set targets and give the impression that they are doing something to grab a few headlines but, after that, can fail to deliver what they said they were seeking to achieve. Immigration is often treated like that, so an arbitrary cap that is routinely broken is of no use whatever.

As we complete the Brexit process—I hope that we will have an agreement with the European Union in place shortly—we need an immigration system that responds to the needs of the economy and the welfare of the United Kingdom. That is what is important here. We do not want something that will be bureaucratic and unworkable and that would cause more problems than it would supply solutions. Our economy will have enough problems in the years ahead without the difficulty this amendment could wreak on it.

Lord Horam Portrait Lord Horam (Con)
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Will the noble Lord give way?

Lord Horam Portrait Lord Horam (Con)
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But on the last group—

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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No. In their contributions, the noble Lords, Lord Horam and Lord Hodgson of Astley Abbotts, referred to think-tank reports. I will be interested in the reports from those think tanks. I should declare that I am the treasurer of a think tank—the Fabian Society—but I am a bit concerned about these bodies because, unlike the Fabian Society, a lot of them are quite opaque. We do not know who funds them, where the money comes from or who is behind these reports, so I would be a bit more interested in what those bodies had to say if we knew who paid for what. The noble Lord, Lord Hodgson of Astley Abbotts, will speak on the next group, so maybe he can tell us who funded the report to which he has referred many times. I will be interested to hear that.

The noble Lord, Lord Paddick, made an important point about the number of EU migrants coming to the UK. In fact, that number has fallen. I carefully read the debate in Committee on this and on many points I found myself in agreement with the noble Baroness, Lady Williams of Trafford, and I have heard nothing so far in the debate to persuade me otherwise.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford (Con)
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I thank the noble Lord, Lord Green, for retabling his amendment; I acknowledge and respect his expertise in this area. I also apologise for allowing the noble Baroness, Lady Smith of Newnham, to intervene because I have now set a precedent. I should never have done that. No one is allowed to intervene.

The amendment effectively intends to reintroduce an annual limit on the number of people who may be granted permission to enter the UK to take up skilled employment. The existing cap, which the Government have committed to suspending, is set at 20,700, and is administered on a monthly basis to those seeking entry clearance as a skilled worker. As outlined in Committee, this sounds like a very sensible measure to control and limit migration to the UK, but we cannot know how many people will seek to come to the UK using the new skilled worker route. The impact of some of the key changes, including the expansion of the skills threshold and the reduction of the general salary threshold, is also unknown. Where possible, Home Office analysts have tried to predict possible impacts, and the points that the noble Lord, Lord Green, made so eloquently may well come to pass.

The amendment provides an opportunity for me to reinforce the importance of implementing a flexible immigration system. Our proposals will do that and ensure that the system can be adapted and adjusted, subject to social and economic circumstances—to which the noble Lord, Lord Paddick, alluded—but we cannot get away from the fact that the amendment would add to the burden on businesses, considerably slow the process of recruiting a skilled migrant, and create uncertainty among employers.

Any cap, including the one we have at present, creates an odd dynamic when it binds us to consider a migrant a valuable addition one month but unwanted the next. This may only be a perception based on the mechanics of a cap, but it is a perception that we want to address, instead focusing on our commitment to continue to attract those with the skills and talents that we need.

The noble Lord highlighted three issues with suspending the cap. The first issue is that an estimated 7 million UK jobs will be open to new or increased international competition. However, these jobs are currently under more competition due to freedom of movement. The imposition of any control, instead of allowing free movement to continue, protects those jobs. Ending free movement and requiring an employer to meet the requirements of being a Home Office licensed sponsor and pay relevant immigration charges, including the skills charge, makes the employment of a resident worker the simpler option. Again, I draw your Lordships’ attention to the Migration Advisory Committee’s September 2018 report on the impact of EEA migration in the UK. It said that it did

“not believe that the welfare of existing residents is best served by a cap for two reasons. First, the cap, when it binds, constrains inflows of a group of migrants which the evidence suggests are the most economically beneficial … Second, the cap creates unpredictability when it binds as there can be sharp increases in the minimum salary threshold that skilled visa applications face.”

The salary requirements rise as this is the mechanism for selecting which roles are granted permission.

The noble Lord’s second issue is that the number of potential applicants is huge. That has always been the case. The advancements in education around the globe and the increase in populations inevitably mean that more people can qualify as skilled migrants. Addressing the point made by the noble Lord, Lord Paddick, the MAC also said:

“We believe that if the Government wants to reduce migration numbers it would make more economic sense to do so by varying the other aspects of the scheme criteria”.


Therefore, we have retained the immigration skills charge in the future system and will continue to operate a range of salary thresholds.

Thirdly, the noble Lord advocates that there would be a great incentive for employers to go for cheap, competent, non-unionised workers. To this end, we are maintaining the position in our new immigration system that those under the skilled worker route be paid a minimum salary level, which has been calculated so as not to undercut domestic workers. The level and operation of salary thresholds has been based on the advice of the MAC. I am sure that the noble Lord would agree that considering the impact of policies on the UK’s economy is an area that the MAC excels in.

Maintaining a sponsor licence also requires compliance with UK employment laws on treating employees equally. We completely accept that the first stage in our plans for the points-based system will need monitoring to assess the impact of the changes on the resident labour market and key sectors, and we are committed to doing just that. On the basis that we are maintaining robust protection for resident workers and providing certainty for UK businesses and employers, and because the key expert advisers have said that we should not apply an annual cap on skilled workers, I hope that the noble Lord, Lord Green, is happy to withdraw his amendment.

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Lord Paddick Portrait Lord Paddick (LD)
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My Lords, I begin to wonder whether we should swap Benches at this stage. Again, the noble Lord, Lord Green of Deddington, longs for the old immigration regime that he has criticised so much. This time it is the resident labour market test or, as the former leader of the Labour Party, Gordon Brown, may have put it, “British jobs for British workers”.

The noble Baroness, Lady Neville-Rolfe, posited that UK employers were likely to recruit from overseas without even considering UK workers, and the noble Lord, Lord Hodgson of Astley Abbotts, said that UK employers were addicted to using imported, low-wage labour. I thought that under the points-based system there was a minimum salary of £25,600, which does not sound to me like undercutting UK labour.

Surely, British employers will look to avoid the immigration skills charge by hiring a UK resident in preference to a migrant, if they possibly can, and British employers will look to avoid having to pay a licence fee to be an authorised sponsor of migrant workers, if they possibly can. Migrants will be deterred from working in the UK, including in the National Health Service and social care, because they will have to pay the immigration health surcharge in addition to income tax, national insurance and VAT—effectively, having to pay twice for the National Health Service. Migrants will also be deterred from working in the UK because they will have to pay far more than the cost price of a visa, and because of the salary and skill levels they will have to attain to secure enough points to get a visa in the first place. From 1 January, all that will apply to all new migrants from the European Union as well as those from the rest of the world. Therefore, I do not think that the noble Lord’s amendment is necessary and we do not support it.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, Amendment 7, proposed by the noble Lord, Lord Green of Deddington, was discussed in Committee. I am all in favour of maximising opportunities for British workers to have employment and skilled employment. Good companies invest in their staff, and it makes good sense to do so. It is much more sensible, when possible, to recruit and train staff locally, for all the reasons given by the noble Lord, Lord Paddick, including the charges that employers incur when recruiting workers from abroad.

This amendment adds a test and a further layer of bureaucracy. For me, the case has not been made for why we should support it. Again, I find myself in agreement with the Minister and her position, as well as with the position of the MAC, which concluded that the likely bureaucratic cost would outweigh any economic benefit of bringing this test back in.

I should say that I have enormous respect for the noble Lord, Lord Horam. We are good friends; we served together for many years on the Electoral Commission. My only point about think tanks—and I am heavily involved in one—is that for some we are unclear about where their funding comes from. I am pleased that we now know that the noble Lord, Lord Hodgson, generously funded his own report. Sadly, of course, we do not know where the money of many of the think tanks that we refer to comes from. With all due respect, it is good of him to fund himself.

I do not think that the case has been made for this amendment in any sense, and I look forward to the Minister’s response. So far, I have heard nothing that could persuade me to support it.

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Lord Paddick Portrait Lord Paddick (LD)
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My Lords, my understanding is that what lies behind this amendment is the aim to allow Parliament to set a rate for new entrants instead of it being set at 30% lower than the national average going rate of £25,600 under the points-based system. To restate what I have said before, this Bill is about EU migration, on which there is no restriction at the moment. From 1 January, if this Bill becomes law, there will be restrictions on EU migrants and a salary floor for new entrants.

It seems that the gut reaction of the noble Lord, Lord Green of Deddington, to the new entrant salary level being set independently based on economic research by the Migration Advisory Committee at £20,480 is that it is a bit low. But as the Minister explained in Committee, the MAC found that those starting in their careers were typically being paid 30% less than those who were established in their role; hence the floor for new entrants is 30% less than the £25,600 set as the salary floor for migrants under the new points-based system. I am not sure whether the noble Lord, Lord Green of Deddington, is arguing that £25,600 is too low and therefore the new entrant salary level is too low, or whether 30% less for new entrants is not typical of a new entrant and therefore it should be something other than 30% less than the established rate.

If the noble Lord’s amendment is agreed, I would have to ask him on what basis he thinks Parliament should decide the new entrant salary level. I understand that the noble Lord believes that migration decisions should be based not on economics but on politics. May I say that I deny that I care little for ordinary working people, as the noble Lord said? If he would care to read in Hansard what I actually said, he will see that I felt that there were alternative protections for ordinary working people to what he was suggesting, which is completely different

We on these Benches believe that economic migration should be based on economics, while immigration by asylum seekers should be based on the compassionate consideration of the evidence of their claim. On that basis, we cannot support the noble Lord’s amendment.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, Amendment 8, proposed by the noble Lord, Lord Green of Deddington, is the third amendment that he has proposed; we considered them previously in Committee. I shall not detain the House for long, but I will say that I listened to the debate on 9 September and I have listened carefully to the debate today, but I am not persuaded by the arguments made so far. These matters are kept under review and if the problem the noble Lord is alluding to is a problem, I am sure that the Government would act. We are probably a bit constrained by our procedures in this debate; in many ways these amendments could all have been debated as one group.

Like the noble Lord, Lord Paddick, I am disappointed by the noble Lord, Lord Green of Deddington, and other noble Lords on the Benches opposite. I just do not accept the assertion behind these amendments—that the UK will be flooded with migrants from the European Union when we have heard that the numbers are actually going down, given the difficulties that will be in place at the conclusion of the Brexit deal. I am not prepared to accept what has been suggested. I may be wrong, but I do not believe that Tesco and the Co-op are going out to recruit all over Germany, France and elsewhere for people to come and work here, given all the charges that would involve for these companies. All those sorts of companies recruit their staff locally. They have huge staff turnover and they engage people locally.

I am also happy to say that this country has benefited hugely from immigration over many years and we should never forget that. However, the one thing I agree strongly with the noble Lord, Lord Hodgson, about is his point about Bills and regulations. He is right to say that over the past 30, or perhaps 40, years there has been a drift, so that Governments of all persuasions produce skeleton Bills with more and more stuff being dealt with in regulations. There are many times when we have all felt frustrated by how we are dealing with these issues. I accept that.

I note that the noble Lord, Lord Hodgson, was interested in and concerned about the position of the Labour Party. I thank him for that. The Labour Party will be fine and we will put forward our position at the next general election. However, I thank him for his concern. I should say, however, that in all the amendments to which the noble Lord, Lord Hodgson, has spoken, his own Front Bench does not agree with him. He has a problem, I suggest, with the Conservative Party as well. Maybe he should look there.

I take exception to the suggestion of the noble Lord, Lord Green of Deddington, that I care little for ordinary working people. I care greatly about workers in this country and their families. We do not agree in this House—that is fine—but to suggest that I do not care, or that the noble Lord, Lord Paddick, with whom I agree, does not care, is wrong. That suggestion from the noble Lord, Lord Green, is regrettable. We can disagree on politics and policies. I come from a family of people who have worked hard in this country and care about how the working people in this country are looked after and protected. I will leave it there and look forward to the Minister’s response.

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Baroness Hamwee Portrait Baroness Hamwee (LD)
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My Lords, yesterday the EU Security and Justice Sub-Committee was discussing refugees and unaccompanied asylum-seeking children with the Immigration Minister. He said, and I made a particular point of noting it—the Minister here does not need to look worried—“We always listen very carefully to Lord Dubs.” Well, that will be important for the next amendment, but I will apply it to this one as well, and I am very pleased to have added my name to the amendment on behalf of these Benches.

My noble friend Lord Bruce of Bennachie said at the last stage:

“We all know that children in care are especially disadvantaged, almost by definition”.—[Official Report, 16/9/20; col. 1292.]


I much prefer that term to “vulnerable” because many of them are extraordinarily resilient. But, however resilient you are, if you do not neatly fit a Home Office category, you are likely heading for problems and any parent, including a corporate parent, should do their best to pre-empt that.

In Committee the Minister explained the support services, I think she called them, for looked-after children and care leavers to assist them to make applications. That is of course welcome, but it would take someone much more confident than I am to be certain that no one will slip through the cracks.

In view of the time and in particular of the very thorough analysis of the amendment, especially by the noble Lord, Lord Kerr, I do not think I should take more of the House’s time, other than to encourage noble Lords to support the amendment—unless of course we hear from the Minister that the point is going to be taken up.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, I fully support Amendment 14, moved by my noble friend Lord Dubs, which would add a new clause to the Bill. This clause was debated in Committee. I was persuaded by my noble friend’s argument then, and I am very much of the opinion that he is right on this issue and deserves the full support of the House when we vote on this issue next Monday, if the Government are not prepared to give way.

The clause would provide for children who are EEA or Swiss nationals and in care, along with those entitled to care leavers’ support, to be granted automatic indefinite leave to remain under the EU settlement scheme. The amendment, as we have seen tonight and as we saw in our debates a few weeks ago, has cross-party support. I am sure the Government have seen that support, and it would be good if the Minister could tell us what discussions took place at the Home Office between Committee and Report. I would be interested to know that; I hope this has not just been rejected out of hand.

My noble friend Lord Dubs said that the amendment would ensure that none of the children became undocumented. Identification is a serious problem for individuals, as my noble friend has outlined. There is also the whole issue that my noble friend talked about of local authorities all having different practices.

The amendment would speed up the process and enable social workers—who generally do a fantastic job, and we all know how much pressure they are under —to go straight to the Home Office and not have to deal with consulates and embassies, getting documents from abroad and the general bureaucracy of dealing with another country. It would avoid all that paperwork. My noble friend also set out the real problems that these children could suffer if the amendment is not agreed.

I agree with the remarks of the noble Earl, Lord Dundee. This really is a sensible amendment that deserves a positive response from the Government. I also agree with the remarks of the noble Lord, Lord Kerr, and the noble Baroness, Lady Meacher.

This is the decent thing to do for these children. We are talking about a relatively small number of children, but the amendment would ensure that no one fell into the trap of becoming undocumented. As the noble Lord, Lord Bruce, mentioned in the previous debate, children in care face all sorts of additional challenges. They are not with their parents. In effect, the local authority is the parent looking after them. All this amendment seeks to do is ensure that they do not have further issues to deal with, either as a young person leaving care or in many years’ time when being undocumented may pose a problem and leave them unable to establish their identity properly. The Government should give way on this small measure.

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Baroness Williams of Trafford Portrait Baroness Williams of Trafford (Con)
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My Lords, I hope I made it very clear at the beginning of this debate that I want each child to have secure status, and a declaratory system does not ensure that, both now and in the future.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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Just to pursue that point, can the Minister set out why that is the case? If you have the children—you know who they are and you have their details—the Government can then set out that the children have settled status, and then you would have records. The problem with Windrush was that there were no records, and that was the dispute, but if the Government actually set out to create records then you have got that system there.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford (Con)
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The noble Lord will appreciate that an application to the EU settlement scheme is an application, with a result of settled status being either confirmed or not. A declaratory scheme confers a deemed leave on a sort of blanket basis, as opposed to each individual applying to the scheme. Therefore, children in years to come might have to prove that they were in the scope of that declaratory scheme; that is what I mean. We are not seeking different ends in this; we are just talking about different ways of going about it. I am trying to explain why an actual application is a more secure way of going about it.