My Lords, the first instrument for noble Lords to consider in this single debate is the Immigration (Employment of Adults Subject to Immigration Control) (Maximum Penalty) (Amendment) Order 2023.
The Home Office is the first line of enforcement against illegal migration and works across government to prevent individuals without lawful status in the UK accessing work, benefits and services. Illegal working often results in abusive and exploitative behaviour, the mistreatment of unlawful migrant workers and revenue evasion. It can undercut legitimate businesses and have an adverse impact on the employment opportunities of people who are lawfully in the UK.
Employers have a role to play in ensuring that all their employees have the right to work in the UK. Since 2008, this has been underpinned by the right-to-work civil penalty scheme, under which employers are required to carry out prescribed checks on individuals before employing them. This is to ensure that they are lawfully allowed to work in the UK. If an employer employs somebody who does not have the right to work in the UK, they may be liable for a civil penalty. Employers can avoid liability for a civil penalty if the correct right-to-work checks are carried out before the individual commences employment.
The level of civil penalty for non-compliance has remained the same since 2014, diluting its impact as a deterrent to those who facilitate illegal working, including instances of labour exploitation. Accordingly, the Government intend to increase the civil penalty for employers from £20,000 to £60,000, by virtue of the Immigration (Employment of Adults Subject to Immigration Control) (Maximum Penalty) (Amendment) Order 2023.
This will ensure that the scheme continues to act as a deterrent in respect of employers who employ illegal migrants and send a clear message that only individuals with a right to work in the UK can secure employment. In the case of a first breach, the starting point is £45,000.
Employers who elect to pay the penalty via the fast payment option will benefit from a further 30% reduction in the overall amount, after reductions have been applied for any specified mitigating factors.
It remains a criminal offence for migrants to work illegally in the UK, or where the individual is in the UK unlawfully. The offence of working illegally carries a maximum penalty of 51 weeks’ imprisonment in England and Wales and six months’ imprisonment in Scotland and Northern Ireland, or a fine.
The second instrument for noble Lords to consider in this single debate is the Immigration Act 2014 (Residential Accommodation) (Maximum Penalty) Order 2023, which will be in force in England only.
Since 2014, anyone offering rental accommodation in the private rented sector should carry out checks on new adult occupiers before renting to them. This is to check that the individual has the right to rent, and is commonly known as the right-to-rent scheme. Allowing those without a lawful right to be in the UK to rent property enables them to establish a settled life in the UK. This creates costs to the public purse, including through the provision of local authority support, and reduces the amount of housing stock available to those who are lawfully residing in the UK. It often allows abusive and exploitative behaviour, with rogue landlords housing unlawful migrants in unsafe accommodation.
The maximum civil penalty for landlords, including letting agents, will be raised—by virtue of the Immigration Act 2014 (Residential Accommodation) (Maximum Penalty) Order 2023—from £3,000 to £20,000. In the case of a first breach, the starting point is £10,000. Landlords and letting agents who elect to pay the penalty via the fast payment option will benefit from a 30% reduction, from £10,000 to £7,000 or from £5,000 to £3,500 as applicable. As is the case now, the maximum penalty will be levied only on an employer, landlord or letting agent who has breached one of the schemes on more than one occasion in a three-year period, where the fast payment option was not utilised and where no specified mitigating factors apply.
Employers, landlords and letting agents can also appeal a civil penalty decision if, following an objection to the Home Office, that decision has been upheld. An appeal must be on the same grounds as the objection and an employer, landlord or letting agent must make the appeal within 28 days, registering it at a county court or sheriff’s court. This allows accidental non-compliant employers, landlords or letting agents safeguards against penalties.
In summary, these draft orders aim to change the behaviour of rogue employers, landlords and letting agents; to eliminate any financial gain or benefit from non-compliance; to tackle the harm caused by regulatory non-compliance where appropriate; and to deter future non-compliance. I therefore commend them to the Committee.