My Lords, I appreciate the concerns raised by my noble friends Lady Hamwee and Lord Teverson in bringing forward this amendment about the impact of the new family Immigration Rules and, in particular, about the impact of the minimum income threshold for sponsoring a non-EEA national partner and dependent children which was established by those rules. My noble friend Lady Hamwee indicated that we had discussed these matters, and I recognise that she chaired the All-Party Parliamentary Group on Migration’s inquiry into the issue, which was referred to by the noble Baroness, Lady Lister, and which reported in June last year.
I acknowledge the point made by the noble Earl, Lord Listowel. Of course we very much welcome those who have settled here and shown great enterprise. That applies to a considerable number of people. Their contribution is very welcome and not only enriches the community financially but enriches the diversity of different cultures and backgrounds in the community.
The new family rules implemented on 9 July 2012 seek to prevent burdens on the taxpayer and promote integration, in particular by introducing a minimum income threshold of £18,600 a year to be met by those wishing to sponsor a partner to settle in the United Kingdom, with higher amounts for sponsoring dependent children.
The level of the income threshold was set in the light of expert advice from the independent Migration Advisory Committee. The levels of income required are those at which a couple, once settled in the UK and taking into account any children, generally cannot access income-related benefits. The policy is also intended to ensure that family migrants are well enough supported to promote their integration into British society. The Government consider this to be a fair and appropriate basis for family migration that is right for migrants, local communities and our country as a whole.
A couple with an income equivalent to the national minimum wage can still access income-related benefits and tax credits. An income threshold set at that level would not be sufficient to prevent burdens on the taxpayer arising once the migrant partner had settled and could access welfare benefits. It would also not provide an adequate basis for supporting the integration of the migrant partner into British society.
Adjusting the income threshold to take account of a sponsor’s consumption of public services and the contribution they make to reducing pressure on those services, including by acting as a carer, would require a complex calculation and numerous assumptions. Such an approach would be more appropriate with an income threshold benchmarked to a sponsor’s net fiscal contribution which, based on the Migration Advisory
Committee’s report, would be £25,700. This is based on mean household income and represents, in broad terms, the point at which a sponsor becomes a net fiscal contributor: someone who is paying into the public finances more than they are taking out.
We have built significant flexibility into the operation of the income threshold, allowing for different employment and non-employment income sources to be used, as well as significant cash savings. In recognition of their reduced earning capacity, an applicant whose sponsor has caring responsibilities and is in receipt of carer’s allowance is exempt from the income threshold. So, too, is an applicant whose sponsor is in receipt of a specified disability-related benefit. Instead, these applicants have to meet the previous requirement for adequate maintenance.
Employment overseas is no guarantee of finding work in the UK, and the previous and prospective earnings of the migrant partner are not taken into account in determining whether the threshold is met. If the migrant partner has a job offer in the UK which meets our labour market requirements for skilled workers, they can apply under tier 2 of the points-based system. The rules allow a British sponsor who has been working overseas and is returning to the UK with the applicant to work here to count their overseas earnings and a firm job offer in the UK. This means they can sponsor their family to come to the UK without being separated from them while they take up employment here. We also allow a migrant who is already in the UK and working here legally to count their earnings towards meeting the income threshold.
The minimum income threshold of £18,600 applies to those seeking to sponsor the settlement of a non-EEA national partner. It does not apply to those seeking to settle in the UK as the parent of a British citizen child or a child settled in the UK or as an adult dependent relative. Instead, these family members must show that they can meet the adequate maintenance requirement.
This amendment would apply to all applicants for leave to enter or remain, thereby imposing a stricter financial requirement than at present on other family members applying to settle in the UK. The amendment would undermine the maintenance requirements under the points-based system for students and skilled workers who are required to meet rules on maintenance that are relevant to their route. The amendment would also be contrary to the Clause 14 provision that it is in the public interest, and in particular in the interests of the UK’s economic well-being, that persons who seek to enter or remain in the UK are financially independent.
I know that my noble friend said that she did not expect any change tonight, given that there are certain legal cases; certainly, when I discussed this yesterday, the case was still in the Court of Appeal. I recognise what she says, but I hope that she realises that the effect of her amendment could, in some cases, disadvantage some people; there are particular provisions on carers to which I have referred. I hope that, in these circumstances, my noble friend will agree to withdraw her amendment.