My Lords, I have listened carefully to the position put forward by the noble Lord, Lord Wallace, and other noble Lords. The Government were pleased to be able to provide further details about the immigration skills charge in the statement made at the Report stage by my noble friend Lord Bates. In addition, a Written Ministerial Statement covering reforms to the tier 2 visa route was laid in the other place on 24 March, but unfortunately it could not be laid in your Lordships’ House because we were not sitting on that day.
As promised at the Report stage, the Government have considered when Clause 87 will come into effect. The first point to make, which was referred to by the noble Lord, Lord Rosser, is that while the clause commences two months after Royal Assent, it is clear in the Bill that secondary legislation will be needed before the charge can be introduced, and that will be subject to the affirmative procedure. Secondly, as my noble friend Lord Bates said on Report, we will publish a draft of the regulations before they are laid, enabling noble Lords and other interested parties to comment; I would just emphasise that opportunity.
As regards the date of introduction, the Government have announced details about the rate and the scope of the charge, including the exemptions that will apply, a year before it is to be introduced. The Written Ministerial Statement confirmed that the charge will be introduced from April 2017 and not before. We consider that that gives employers, including those in the public sector, sufficient time to plan how best to manage the introduction of the charge without delaying until after April 2018, as suggested in this amendment—and I am grateful to the noble Lord, Lord Green, for his comments on that point. I would argue strongly that there is no need for transitional provision to be made for institutions in the public sector, which is the other purpose of the amendment. I would just say that, on Report, my noble friend Lord Bates did not commit to consider a phased approach to implementation for the public sector. We made a commitment to consider when the clause comes into effect and, as I have indicated, we stated that we will not introduce the charge before April 2017.
As the independent Migration Advisory Committee stated, public sector organisations are employers, like any other, and should be incentivised to consider the UK labour market first before recruiting from outside Europe. On that particular point, it is worth noting that the MAC took evidence from a full range of stakeholders, including the public sector, before making its recommendations. From my time as a health Minister I recognise the important role that tier 2 plays in recruiting doctors to fill vacancies in hard-to-recruit medical specialties and areas, as the British Medical Association has flagged. I also understand its concern that the charge might take funds away from training in the health service.
Let me be clear about this. Staffing in the NHS is a government priority. That is why there are already more than 29,600 extra clinical staff, including more than 10,600 additional doctors and more than 11,500 additional nurses on our wards since May 2010. That is why Health Education England has increased nurse training places by 14% over the last two years and is forecasting that more than 40,000 additional nurses will be available by 2020. There are already 50,000 nurses currently in training.
The noble Lord, Lord Wallace, asked me what plans there were to incentivise individuals into nursing and to encourage retention. It would perhaps be helpful if I mentioned that the Come Back to Nursing campaign, launched by Health Education England in September 2014, reports that 2,188 nurses have registered on a return-to-practice programme, 927 have completed the programme and, of those, 700 have successfully completed their retraining and are now back on the front line providing care and support for patients. We have invested £40 million in leadership training to create a new generation of senior nurses and we are running a campaign to get experienced nurses who have left the profession back to work.
The noble Earl, Lord Listowel, referred to the pressure on schools, and I understand the points that he made. I hope that he will take some reassurance from the fact that many schools will benefit from the reduced rate of £364 by virtue of being either small businesses or charities. The noble Lord, Lord Rosser, asked about ring-fencing the fund and whether the charge will just go, as it were, into general revenue. Let me be clear about that. The Prime Minister was emphatic that this measure will help train up the resident workforce to address skills shortages. I cannot, of course, tell him how much the skills charge will raise. The amount of funding generated will very much depend on employer demand. The Migration Advisory Committee estimated that the charge could raise as much as £250 million a year. The MAC’s estimates did not take account of the reductions and exemptions the Government have announced or the expected impact on behaviour. The Government are still finalising the policy detail, as will be obvious. We have not, therefore, produced a firm estimate. However, we estimate that once the exemptions and reductions are taken into account, the sums raised will be significantly lower than the MAC’s estimate.