My Lords, I beg to move that the Committee considers this statutory instrument. This fees order is to be made using the charging provisions in Sections 68 to 70 of the Immigration Act 2014, which consolidated and simplified the charging provisions from three previous Acts. The order sets out the maximum amounts that may be charged for broad categories of immigration and nationality functions for the next four years, which is the expected life of the order. Maximum fee amounts are ceilings, which limit the amount that may be charged in subsequent fee regulations.
Like the previous order, the maximum amount for each category is set to accommodate the highest individual fee in each category. In most cases, the categories will contain a number of different, individual fees. I want to make it exceptionally clear that the maximum amounts are not targets that the Home Office will seek to charge by the end of the four-year period. These maximums will allow the Home Office to adjust fees within these ceilings in order to be responsive over the next four years to the needs of customers, the department and the taxpayer, and to meet the Government’s objective of a border, immigration and citizenship system by 2019-20 that is fully funded by those who use it and benefit most, as announced in the spending review.
The fees order will also enable us to expand the scope of our premium service fees, which will facilitate the introduction of new services in addition to those already offered. The amendments will also provide greater flexibility to deliver services directly to customers and organisations that request increased or tailored levels of support. The introduction of such premium services does not replace or seek to charge for those services that are currently provided for free. We continue to ensure that the appropriate measures are in place to enable scrutiny of our proposals, while immigration and nationality fees will continue to be transparent and set in the best interests of the United Kingdom.
The legislative framework does not allow for the Home Office to put up fees whenever it likes. The legislation requires that immigration and nationality fees proposals must be considered and approved by Her Majesty’s Treasury. They are also agreed by the cross-governmental home affairs committee and an impact assessment is produced on the proposals prior to fees legislation being presented to Parliament. We expect that most fee levels will be subject to an annual review during the four-year period and that fee level changes will be subject to the same cross-governmental approval process. The individual fee levels will be set out in negative regulations. We expect shortly to lay regulations setting out the fees for 2016-17.
We have published a fees table that shows our intentions for individual fees in 2016-17, and I will now explain our proposals. Consideration of the impact of fees on businesses, educational institutions and economic growth continues to be balanced with the government policy that users of a system should pay more towards its costs and therefore reduce the burden on the UK taxpayer. To support the Government’s approach towards recovering an increased proportion of immigration and visa costs and the transition to a self-financing border, immigration and citizenship system, we propose to apply incremental increases to most immigration and nationality categories.
The proposed increases do not impose any additional costs on business. To support economic growth, we intend to make relatively small fee increases for applications related to work, study and visit, which will increase by 2% next year. For example, the fees for short-term visit visas and tier 4 student visas would rise by £2 and £6 respectively.
A number of visa and immigration fees will continue to be set at or below the estimated processing cost. The highest proposed increases in fees in 2016 are for optional
services that offer an enhanced level of convenience and for routes that provide the most benefits and entitlements —for example, requests for enhanced application services and for indefinite leave to remain.
I know that noble Lords will all support a border and immigration system that controls immigration for the benefit of the UK while improving services to customers and reducing the cost to the taxpayer. I believe that this fees order, as an enabling provision, will help us to achieve this, and I commend it to the committee.