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Immigration and Nationality (Fees) Regulations 2009

My Lords, the Government are delivering the biggest shake-up of the immigration system in 45 years. The improvements and the new services do not come for free and our policy is that the burden for paying for them should not fall entirely on the UK taxpayer. For 2009-10, we will spend about £2.2 billion on securing our borders and managing the immigration system. There is widespread agreement with the Government’s policy that those who benefit from the services should contribute towards the cost of the system. In total, about 30 per cent of the costs of securing our borders and managing the system are recovered through charging for applications and services. The remaining costs are met by the UK taxpayer. These regulations are made under Section 51 of the Immigration, Asylum and Nationality Act 2006 and in accordance with the powers granted in Section 42 of the Asylum and Immigration (Treatment of Claimants, etc.) Act 2004, as amended by Section 20 of the UK Borders Act 2007. Under Section 42, the Secretary of State can set a fee for an application at a level that exceeds the administrative cost of determining the application. We set these fees above cost to subsidise some of the lower fees and to contribute an extra £100 million for enforcement. We also specify fees in separate regulations under the powers in Section 51 of the Immigration, Asylum and Nationality Act 2006. These regulations set the fees for applications, processes and services that are provided at or below the administrative cost of determining the application. We take into account a broad range of factors to set fee levels. We welcome the contribution that legal migrants make to the economy and cultural life in the UK and we have ensured that the proposed fees will maintain the UK’s position as an attractive destination for work, study, visiting and cultural exchanges. We have considered the fees in other countries and have set our fees at levels that will not damage the UK’s international competitiveness. We have also ensured that the charging system is fair to those using the system in terms of the price paid for consideration of their application. We think that it is right that those who benefit most from the immigration system should pay proportionately more towards its costs. For each fee, we have analysed the estimated impact of price increases on demand and have built the revised volume demands into our fees modelling. We maintain a balance between our need to recover costs and keeping our fees at fair and sustainable levels. Our fees are set within strict financial limits agreed with the Treasury. The fees also balance wider policy aims set by the Government. For example, we set student visa fees below cost in accordance with the Prime Minister’s initiative to increase student migrants coming to the UK and in response to stakeholder consultation and feedback. We have also held sponsorship fees paid by business and maintained the lower fees for small businesses and charities in recognition of the difficulties facing UK businesses at this time. Given the economic circumstances and the action that we are taking to be more selective, we expect the number of migrants coming to the UK from outside the EEA to fall during the next financial year. This year’s fees take account of that, to ensure that UKBA can continue to offer a world-class level of service. Finally, in accordance with the Government’s declared policy to create a fund to help local service providers to deal with transitional pressures of migration, we have agreed with the Treasury to recover the money for this fund through these fees. Our overall aim is to ensure that income from these fees makes an appropriate contribution to the end-to-end costs of the immigration system, thereby reducing the burden on the UK taxpayer. Our method of fee setting balances a number of complex factors. It will continue to help to protect some routes from significant increases and will contribute to the additional revenue needed to fund enforcement and other necessary improvements to the immigration system. I commend this instrument to the House.