Immigration and Nationality (Fees) (Amendment) Order 2026

Considered in Grand Committee

Moved by

That the Grand Committee do consider the Immigration and Nationality (Fees) (Amendment) Order 2026.

My Lords, this fee order sets out the immigration and nationality functions for which a fee is to be charged, and the maxima amounts that can be charged in relation to each of those functions. In the order, we propose a number of changes that will facilitate government policy. Fees charged by the Home Office for immigration and nationality applications are an essential part of the department’s funding settlement.

This order will increase fee maxima across a number of chargeable functions, including those for the new electronic travel authorisation—ETA—and entry clearance as a visitor for visas valid for a period of more than 12 months. It will also include a visa on a route to settlement, a settlement visa, naturalisation and registration as a British citizen or as one of the specified other categories of citizenship, and certain nationality-related services. I should explain that the actual fee levels that are to be charged for those seeking to enter or remain in the UK are not being changed in this order. Any changes to the fee levels will be made through separate legislation and will be accompanied by a full economic impact assessment.

In laying this order we have sought to provide clarity to Parliament, and indeed to the public, about our intention to increase certain fees when parliamentary time allows. These are as follows. We will increase the fee maxima applying to an application for an ETA from £16 to £20 in order to facilitate a subsequent increase in the chargeable fee to £20. This will be by negative resolution in the event of those fees being brought forward. The fee maxima for entry clearance as a visitor for a period of more than 12 months will increase from £250 per year to £253 per annum. This will allow the Home Office to increase the fee for a two-year visitor visa from £475 to £506. We are increasing the fee maximum for visas on a route to settlement from £3,600 to £3,635. This is to facilitate a subsequent increase to the fee applications by other adult dependent relatives of a British citizen, or a person with settled status who wishes to join their family in the UK. That will rise from £3,413 to £3,635.

My Lords, I thank the Minister for introducing the order. The principle behind the changes that he has just outlined is well-established. Since 2003, under the then Labour Government, successive Administrations have accepted that immigration and nationality fees may be set above administrative costs in order to contribute to the wider operation of the system. We have consistently supported the view that those who use and benefit from the immigration system should make a fair contribution, reducing the burden on the taxpayer.

As the Minister outlined, the instrument is a precursor to proposed increases in the maximum fees that may be charged across a range of products. The ETA will rise from £16 to £20, visit visa maxima will be uprated, the cap for limited leave and settlement will increase, and nationality-related maxima, including naturalisation as a British citizen, will rise. With the exception of the ETA, these increases are 6.5%.

The impact assessment suggests that setting fees at these maxima could generate around £1.8 billion over five years. That is significant revenue in the context of a system whose annual costs run into many billions. The Government argue that demand for visas is relatively inelastic and that modest increases do not materially reduce volumes. If that assessment is robust, it provides a rational basis for the approach.

In our view, two issues merit scrutiny. First, the ETA increase represents a 25% rise. Has any assessment been made of the impact on visitor numbers? Why was £20 judged the appropriate level? Given the acknowledged uncertainty in the modelling and potential implications for tourism, including in Northern Ireland, it would be helpful if the Minister could update the Committee on any evaluation that is under way and confirm when its findings will be published.

Secondly, how will the additional income be used? The Government have committed to reducing migration and tackling illegal entry, yet the costs of irregular migration remain substantial. Will the revenue primarily fund those pressures, or will it deliver tangible improvements in efficiency and border security? Does the Minister anticipate further increases in the near future?

My Lords, I am grateful for the broad support of the noble Lord, Lord Cameron of Lochiel, for the principle behind the order. I am grateful for his generous support for the direction of travel that we are undertaking. He has asked two specific questions, which I will try to answer for him.

On the ETA scheme, we are increasing the fee maximum to £20, rising from £16. As he said, that is an increase of around 25%. Moving from £16 to £20 will put us in line with the American fee and the pending European fee. In general terms, it is a reasonable amount of resource.

The noble Lord asked whether that will have an impact on tourism, particularly in Northern Ireland. Last week, I answered questions in the House on the Northern Ireland ETA. We have had discussions with the Northern Ireland tourist board to look at the impact of that, because many people enter the United Kingdom in Northern Ireland via planes to Dublin from America or other ports. We discussed that in detail. We are introducing ETAs in Northern Ireland to enhance our ability to screen travellers upstream. People who arrive in the United Kingdom, including those travelling from Ireland into Northern Ireland, will need an ETA, in line with the UK’s immigration framework. I genuinely do not believe that a £20 fee is going to deter someone from visiting the great city of Belfast, the Mountains of Mourne or the Giant’s Causeway, or, in a wider UK context, from visiting London and seeing all the sites that we have here. It is a reasonable fee for people entering to pay. Although it is a higher fee than the 6.5% general fee, it is a reasonable fee and it brings us in line with other partners.

The noble Lord asked the perfectly legitimate question of what happens to the money that the Home Office makes on the application fees. The Home Office does not make any profit from the fees, in line with the charging principles set out in the Immigration Act 2014. Fees for immigration and nationality services are set in consideration of the costs of processing an application, the wider costs of running the migration and border system, and the benefits enjoyed by successful applicants. Any income from the fees set above the costs of processing goes towards funding the wider immigration system.

Motion agreed.