My Lords, this is the first fees order made using Sections 68 and 69 of the Immigration Act 2014. The order sets out the menu of immigration and nationality functions for which fees may be set in subsequent regulations. It sets out maximum amounts for different categories of fees, limiting the amounts that may be charged in subsequent regulations. The changes made are designed to address two issues with the previous framework.
First, the Immigration Act makes clear that fees may reflect the cost of other immigration and nationality functions. This ensures that those who use and benefit most from the immigration system continue to contribute proportionately towards the cost of running the system.
Secondly, the new framework is more flexible and responsive, making it easier to amend fees without the need for a new affirmative statutory instrument. In previous years, immigration and nationality fees were set out in two statutory instruments; that is, a negative instrument for cost-recovery fees and an affirmative instrument for all other fees. Moving forward, all immigration and nationality fees will be set out in a single, negative set of regulations. The benefit is that where a change is made to the Immigration Rules requiring consequential changes to fees, these may be made within weeks rather than waiting for the next annual fees update in April. This also applies where new services are introduced to meet customer demand, or where operational or legal requirements necessitate fees changes.
We continue to ensure that sufficient checks and balances are in place to enable appropriate scrutiny of our proposals to ensure that immigration and nationality fees are set in the best interests of the UK. Fees proposals must be scrutinised and approved by a number of government departments and an impact assessment produced before they are presented to Parliament. The Government balance their policy that users should pay with consideration of the impact of
fees on businesses, education institutions and economic growth. The new framework requires fee maximum amounts to be set out in a fees order.
This is a new requirement and means that Parliament may consider the “menu of charged services” and fees at the same time. This is an improvement on the old framework, which had been criticised because there were separate debates on the “menu” and fee levels. Individual fee levels will be set out in negative regulations. This is consistent with most other government fee arrangements. We have published a fees table that shows what we expect individual fees to be in 2015-16. I will turn to those in a moment. In practice, we expect that most fees will continue to be set following an annual review cycle, consistent with departmental budgeting arrangements. This order will last for one year.
I will now turn to the contents of the order before noble Lords. First, it separates the various chargeable applications and services into clear groupings. I believe that this categorisation is much clearer than in the past. For example, the previous fees order provided that leave to remain applications are chargeable, but gave no further detail. It is now easier to understand that fees will be charged for sponsored workers, students, settlement applications and so forth. The order also proposes maximum fee levels for groupings of similar applications and services. The maximum amount for each grouping reflects the amount we expect to charge for the highest individual fee in that grouping. These maxima are not targets. Most groupings will contain a number of individual fees, charged at different rates below the proposed maximum.
I will now explain the fees proposals for April 2015 that will be set out shortly in regulations. In order to cover a larger proportion of immigration and visa costs through fee income, most immigration and nationality fees will increase. The Government’s approach, consistent with previous years, is to protect certain routes as far as possible and balance this through making targeted increases where reasonable, in particular where the benefits to applicants are greater, services are optional, where there is evidence that customers are willing to pay more, or that UK fees are priced below those by other countries. Percentage increases are then applied to other fees as appropriate.
We propose that tourist visas should rise by £2, which is around 2.5%, and that some fees should be frozen or even reduced. For example, the 10-year visit visa and shortage occupation worker fees will be frozen, while exceptional talent fees will be cut. Also, a number of fees will still be set at unit cost. The highest increases are proposed for the routes that provide the most benefits and entitlements, and for optional, premium services. For example, indefinite leave to remain and investor visas, which may provide an accelerated route to settlement, will be subject to large increases. Similarly, expedited visa services overseas and mobile biometric services in the UK will increase significantly. Most other fees will rise by between 4% and 12%. In general, lower increases are proposed for the routes that support economic growth with higher increases for the routes that provide greater entitlements or where unit costs are higher.
We expect to lay regulations shortly to come into effect on 6 April. This fees order as an enabling provision provides us with the means to generate sufficient resources to sustain a high-quality immigration system, reduce the cost of the system for the general taxpayer and ensure that those who use and benefit from the system pay a fair price. I beg to move.
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