My Lords, Clause 55 provides a power to raise the charge, but details about the rate and scope of the immigration skills charge will be set out in regulations to be laid before the introduction of the charge. At that point there will be an opportunity for an informed debate on the details within the regulations. There are likely to be legal implications of introducing exemptions which will require careful consideration.
The Migration Advisory Committee published its review of tier 2 migration on 19 January, and the Government need time fully to consider the evidence about the likely impact of different rates on different types of organisation. As well as the Migration Advisory Committee’s findings and recommendations, we wish to consider other evidence from stakeholders and any legal implications before recommending the rate at which the immigration skills charge could be set and whether any exemptions should be applied.
The Government believe in consulting those affected by the proposed changes. The independent Migration Advisory Committee carried out detailed stakeholder consultation as part of its review of tier 2 migration. In addition, this Government have welcomed discussions with, and received evidence from, a large number of businesses and representative organisations. The process will continue and will, of course, take into account the representations that have been made today by the noble Lord, Lord Wallace, and those received from academic institutions both by myself directly and by other colleagues.
As for consulting on the changes, since the announcement in May, we have been consulting employers and business leaders across the private and public sectors to get their views on the immigration skills charge. This will continue. In addition, the Migration Advisory Committee conducted a review of tier 2 with the remit to advise government on restricting tier 2 to genuine skills shortages and highly specialised experts. As part of this review, the MAC considered evidence from employers on the immigration skills charge.
As to the impact on healthcare, which the noble Lords, Lord Rosser and Lord Wallace, asked about, no decision has yet been made. The details of the charge will be set out in regulations, which will be subject to the affirmative procedure. Therefore, there will be an opportunity for a full debate at that point.
The Government have not said that the immigration skills charge will fund the 3 million apprenticeships; rather, they have said that the immigration skills charge
will contribute towards skills funding. The level of the charge has not yet been set. The Government are also proposing an apprenticeship levy, not linked to migration, which will go towards apprenticeship funding. The Migration Advisory Committee recommended a figure of £1,000 per year, which is large enough to raise a reasonable amount of revenue and have an impact on employer behaviour.
That is at the core of what this is about. As the Prime Minister said at the outset, it has been far too easy for some businesses to bring in workers from overseas rather than take the long-term decision to train the resident workforce in the UK. We need to do more to change that, and that is the rationale that is driving this. We are proposing that a charge be enabled through this legislation, and we are continuing to consult because we are not unmoved by the noble Lord’s argument that the level at which this is set and those to whom it is applied will have significant implications. Therefore, we need to get that right.
The noble Lord slightly chastised us by saying that we used to have a policy of attracting the brightest and the best. Of course, there is only one thing better than that, and that is to actually grow the brightest and the best here. That is what this policy is designed to do. More details will follow and the House will have an opportunity to scrutinise those when they are presented.