I am grateful to noble Lords for their questions, which I will seek to address. Before I do so, it may be helpful to reiterate the broad principles which we are dealing with here. First, we are trying to create a self-financing model—the noble Lord, Lord Paddick, said that he supported that—which was contained in the comprehensive spending review. The mechanism that we are talking about in the order comes from the Immigration Act 2014 and gives a degree of certainty and understanding to people on the ranges for which they are planning. The broad element is that we want this mechanism to become self-financing, but within that there is a differential, and the noble Lord, Lord Rosser, invited us to explore this. Of course there is a difference of approach when we are looking at students, for example, who we want to encourage to come here to bona fide universities. We want to maintain their costs at a competitive level to encourage them to come, as with people coming on visitor visas. However, some of the other charges involve cases where there is less obvious benefit across the whole of the UK, and more benefit to the individual concerned. We are saying that in those circumstances the additional fees will go towards keeping the costs down over the four-year period.
I shall deal with some of the specific questions in no particular order. The noble Lord, Lord Rosser, asked whether having more premium services equates to a poorer standard of service for everyone else. He will not be surprised to hear that that is not so. In-country casework delivery to customers has improved over the last year with service standards being met consistently across all routes. These are optional services that improve customer choice. On customer choice, we know that some of our customers want a faster and
more personal service so we are expanding and improving our premium services—for example, customers who need a faster decision or need to have their passport returned before a decision has been made on an application because they need to travel in the near future; customers who prefer face-to-face services; and customers who want access to premium services without travelling to UK Visas and Immigration premises. These are all examples of premium services that attract a premium fee.
The question was asked, are the fees being used to deter applications? No; again, we cannot use fees to deter applications. We are introducing a policy and operational measures to reduce immigration abuse and inward migration. We continue to welcome the brightest and the best to the UK. There is no evidence of a relationship between changes in fees and the volume of applications for various visa products.
The noble Lord, Lord Paddick, asked how much revenue we intend to generate throughout the lifetime of the order. We expect around £600 million of border, immigration and citizenship system costs, excluding asylum support and customs, to be funded by the Exchequer at the present time. We have also made significant savings, which the noble Lord referred to. Compared to 2010, the Home Office will have delivered savings of around £3 billion in 2015-16. This includes savings and efficiencies in operating and the immigration system. Of course that has to be placed in the context, which I am sure the noble Lord welcomes, that we protected the police budgets during that time. There was a great deal of speculation about that but we did it, and I think it is broadly welcomed by everyone. However, it means that the essential progress towards maintaining a tight control on costs and administration needs to be kept up.
The noble Lord, Lord Paddick, asked whether fees are being increased to plug a hole in the Home Office budget. Through making savings and improving efficiencies, we expect to reduce the Exchequer funding requirement by over half by 2019-20—that is, from £600 million down to £300 million. We expect to increase income from fees by circa £100 million in 2016-17. That would mean that the borders, immigration and citizenship income will be circa £1.8 billion in 2016. We estimate that we will need an additional circa £250 million of income from fees by 2019-20 to meet our self-funding objective.
The noble Lord, Lord Rosser, asked whether this would be based on an applicant’s ability to pay. There are costs to the immigration system in processing and assessing such claims and the ability to assert certain rights. Therefore it is right that we have a system that can cover these costs. We will never require—I underline this point—a fee that would be incompatible with the European Convention on Human Rights, and indeed there are many fee exemptions. Specific exemptions from application fees are provided to several groups with limited means for applications made within the UK—for example, asylum applications; children who receive local authority support; stateless people; and victims of domestic violence. The Home Office will not require a fee where this would be incompatible with an applicant’s convention rights.
The noble Lord, Lord Rosser, asked about the proposed maximum: does the maximum amount of £400 within the order suggest that the Government have abandoned their intentions for the cost of administrative review to be cheaper? Individual fees are grouped into broad categories in the order so that the maximum amount must allow for the highest fee in that category. The maximum amounts have increased to provide scope to increase immigration and nationality fees to achieve the objective of the borders and immigration system being fully funded. This should not be taken as intent to increase the administrative review fee to the maximum within the border category. I think that that is not exactly spot on regarding what the noble Lord asked; he made a more general point, which was to ask whether, in presenting these orders over four years, when we have put a ceiling in place we do not expect to come back and ask for that ceiling to be raised. That is entirely right, and that degree of certainty on this can be given, which will allow people to plan accordingly.