The Business Services Association 130 Fleet Street, London. EC4A 2BH. BSA The Business Services Association. Policy paper - Immigration Services

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1 The Business Services Association 130 Fleet Street, London. EC4A 2BH BSA The Business Services Association Policy paper - Immigration Services October 2015 With the Spending Review due next month, we know there will be further tough choices ahead across all public services. Whitehall departments will be looking for ways to both improve public services and their outcomes, as well as meet efficiency targets. In the area of immigration, recent events have led to a resurgence in the immigration debate, discussion about immigration and how well the immigration system in the UK operates. Away from political and ideological debates about immigration policy itself, it is clear that the application of policy through the immigration system could be improved. The three directorates that make up the UK immigration system Border Force, UK Visas and Immigration, and Immigration Enforcement - collectively spend some 1.8 billion per year and are responsible for dealing with over 100 million people journeying to the UK each year 1. However, the system is currently disjointed and processing cases takes a long time, leading to backlogs. Data showing the status of migrants, including those requiring support, failed asylum seekers and overstayers, is often incomplete, hindering the ability of the authorities to enforce decisions. This paper focuses on the journey of an immigrant once they reach the UK, the complications that currently exist in immigration services, where services could be opened up to competition from private and voluntary sector providers by exploring new areas that the market is experienced and ready to move into, and the potential benefits this could bring. The current landscape As the diagram on page 2 demonstrates, the immigration system in the UK is not a linear process. Those within the system can find it difficult to understand and navigate, especially those who are already vulnerable. It has to manage a large volume of people and be able to deal with fluctuating flows of people as they move through the system. To put this in context, in there were: million journeys to the UK 25,020 asylum applications 21,651 asylum applications received since April 2006 pending a decision 30,902 people entering immigration detention and 30,313 leaving detention 5,051 foreign national offenders removed from the UK 12,498 enforced removals 29,307 voluntary departures T: W: The Business Services Association Limited is registered in England No Registered office as above.

2 Within the current system, private and voluntary sector providers already play a key role in running centres and managing key stages of the immigration system on behalf of the Home Office, Border Force, UKVI and Immigration Enforcement. For example, BSA members already provide the following immigration services: The management of some Immigration Removal Centres (IRCs) Housing and support services for asylum seekers Transport services following arrival in the UK and prior to removal Both assisted and enforced returns to country of origin Some administration and back office functions, such as payroll and business processing With the next Spending Review on the horizon, it is likely that the Home Office will be tasked with implementing further budget reductions, including in the running of the immigration system. The BSA believes that, to make significant savings and cope with changing levels of demand, more imaginative redesigning of service delivery is needed. The role that external providers can play in this transformation needs to be explored. Private sector experience of delivering services to private and public sector organisations The BSA believes no sector has a monopoly of wisdom on service delivery, and some of the best public services in the UK are delivered by a mix of public, private and voluntary providers. However, as well as delivering services on behalf of Home Office, private and voluntary sector providers deliver complex and high-volume services across the private and public sectors. They therefore have a vast amount of experience and insight which could be carried across to support the Home Office to manage the immigration system more efficiently, in turn taking out cost and delivering a better experience for those within the system. 2

3 For example, the Ministry of Defence is one of the largest landowners in the UK with an estate of over 2400 hectares and a property portfolio ranging from its HQ at Whitehall to military bases and offices across the UK. The MoD, through the Defence Infrastructure Organisation, utilises the private sector s expertise in land, asset and facilities management to manage, maintain and develop this estate. Through the Next Generation Estate Contracts (NGEC) programme, new commercial arrangements cover regional prime contracts delivering maintenance services, national and regional capital works frameworks for construction projects, a national housing prime contract delivering housing maintenance services and a national training estate prime contract. 3 The private sector also has a wealth of experience in dealing with large volumes of customers. The BBC outsources the administration and enforcement of the TV Licence to a private sector provider, which deals with and processes the 25.5 million licences in force in Within the right contractual arrangements with appropriate allocation of risk, the private sector can also help to manage fluctuating levels of demand, such as in the number of people entering and leaving prison, or changing school intakes each academic year. There are also a number of examples across a variety of public services of arrangements with the private and voluntary sectors delivering value for money. For example, analysis of the Troubles Families Programme, which involves local councils working with delivery partners, has shown that in Manchester, Redcar & Cleveland and the London Borough of Wandsworth, for every 1 invested local public services receive between 1.89 and 1.96 over the duration of the Programme 5. The Work Programme, which is delivered through a payment-by-results, has achieved similar levels of performance to previous welfare-to-work services at a lower cost 6. Across the range of services private sector providers deliver across the private and public sector, customer service is key, as it is in the immigration system. Private sector service providers are contracted by many large private and public sector organisations, including many large multinational corporations, to provide call handling services. As well as potentially receiving high volumes of calls, this requires a high degree of professionalism and customer service to deal with everything from enquiries to complaints. In the housing sector, private sector providers deliver social housing management services, often working with vulnerable people in difficult situations. They deal with cases of homelessness and antisocial behaviour. In these cases, a high level of customer service is required to deliver difficult news on occasion, whilst remaining in control of the situation and working towards safe outcomes for all involved. Employment services for long-term unemployed people and rehabilitation services for offenders are also now delivered by a mix of private, public and voluntary sector organisations, dealing with people with complex needs. Dealing with sensitive and personal data is also something the private sector already does on a daily basis. In the public sector, concerns around sharing confidential information is often cited as a barrier to opening up services. However there are systems that enable data to be shared securely, which can then be used to identify problems such as operational bottlenecks earlier and reduce duplicating efforts to collect data. A good example comes from local government. Data sharing between public service organisations in South Wales has enabled local authorities, police and health organisations to better identify individuals and groups at risk in the area and plan services for them bled_families_programme_to_the_taxpayer.pdf 6 3

4 Another example is the Ministry of Justice s data lab which gives organisations working with offenders access to central reoffending data and help to assess the impact of their work. Organisations upload details of the individuals they work with and information about the services provided, including confidential personal and commercial data, and the Justice Data Lab provides analysis of the impact of that programme. Further opportunities Building on those areas which have already been successfully outsourced, the BSA believes that there is scope for the three immigration directorates to open up more delivery of support services to competition. Doing so would open up opportunities to bring in experience and expertise of providers from all sectors and utilise contractual mechanisms to incentivise providers to focus on outcomes, for example, and drive innovation. Departments with non-protected budgets, such as the Home Office, will need to think very differently about how services are delivered in order to meet budget reduction targets expected in the Spending Review without impacting on service quality. It is important to note the BSA recognises there will be limitations to what can be opened up, and that some activities, particularly those requiring the application of statutory authority, should continue to be delivered by the Home Office. We have in mind here activities such as decisions on visa or asylum applications. Where there is scope to open-up services, however, is in areas such as the processing of cases and management of migrants journey through the system. Some services that we believe could be considered include: Management of the full immigration estate, including facilities such as reporting centres Case management processing tasks and first-point-of-contact services, such as help desks Processing immigration and customs checks (basic background checks on immigration statuses, searching baggage and vehicles) Translation services Immigration enforcement activities, including managing databases, transportation and making travel arrangements Engagement/coordination with local government on schooling, housing and other key services In looking at which services could benefit from being opened up to competition, we suggest that certain principles should govern: An assessment of the full range of activities undertaken at each stage of the immigration system should be completed to determine those that are core activities of the state and those that are not. In doing this, it would be helpful to look at how similar services are delivered in other parts of the public sector. All functions that are not deemed to be core functions of the public sector should be considered for opening up to competition. The private sector could be invited to assist the Home Office to do some high-level modelling on how service delivery could look. This should explore different contractual models and how providers from all sectors can partake. Market engagement from the very early stages is crucial in successfully opening up services. Providers can help to shape programmes and contracts to ensure they are viable and meet objectives, as well as helping commissioners to understand what the market can offer. Risks should be properly assessed and managed over suitable contract lengths. Providers bidding to deliver public services should be expected to demonstrate a full understanding of these risks and the capability to manage them. Equally, contracting authorities should ensure risk is shared appropriately and sits with the party best able to manage it. 4

5 Enabling a more joined-up approach Introducing competition, allowing public, private and voluntary sector organisations to bid to deliver a wider range of services, could enable a more joined-up approach across the system and potentially, in the longer term, a managed end-to-end service from arrival in the UK to long-term settlement or removal. By coordinating commissioning strategies and designing contracts that span across directorates towards common objectives, a more streamlined, efficient system can emerge that drives innovation and mitigates risk. Fragmentation, from the migrant s perspective, within the current system is a symptom of the split in responsibilities between the three directorates. This can increase the risk of delays to the processing of applications. Different processes and points of contact as migrants are passed from one part of the system to the next can also causes confusion and frustration for migrants who view the process as a whole rather than several discrete parts. For example, detention services and deportation services operate in silos under different directorates. This can mean poor coordination in booking and escorting individuals onto flights, which accounts for 70 per cent of cancelled removals from the UK. 7 A more joined-up system would benefit both migrants and the Home Office. For migrants, it would help to improve access to information on their case and could help to reduce delays in processing applications. For the Home Office, it would drive efficiencies in the way services are delivered and avoid duplication, as well as reduce cost. The directorates should consider working together to produce joint strategies to improve services for migrants and seek cost savings. For example, colocating services within a centre means migrants can speak to all those involved in managing their case at one time to keep them informed. There is also scope for greater joining-up with other public services. For example, greater collaboration with the prison service would enable immigration enforcement officers to pick up foreign national prisoners requiring assessment or deportation as they leave prison. Currently, this is not the case for many. Greater coordination with local authorities can help to plan better housing arrangements for migrants supported by the Home Office. In moving to a more joined-up system, there are a range of contractual models already used across the public sector which would support the objectives for joining-up services in the first place. For example, under a Prime Contractor model, the provider has end-to-end responsibility for service delivery, supported by a robust supply chain of often smaller or specialist providers. This can bring in small and specialist providers to large contracts that may otherwise preclude their involvement. Another example is the use of payment by results (PbR) contracts, whereby providers are paid for achieving outcomes. The payment model for such contracts can be geared towards outcome payments or, where appropriate, combine service fees and outcome payments. In the setting of the immigration system, a PbR model might include a staged approach with interim milestones. 7 Independent Chief Inspector of UKBA Asylum: Getting the balance right

6 Annex The current immigration system In March 2013, the Home Secretary announced in a Ministerial Statement to Parliament that the UK Border Agency would be split up into two separate agencies (UK Visa and Immigration and Immigration Enforcement), and subsumed back into the Home Office. The border control division of the UK Border Agency was separated from the rest of the agency in April 2012 as the Border Force. Border Force is a law enforcement command within the Home Office. Responsibilities include: checking the immigration status of people arriving in and departing the UK; searching baggage; vehicles and cargo for illicit foods of illegal immigrants; patrolling the UK coastline; gathering intelligence; and alerting the police and security services to people of interest. UK Visas and Immigration (UKVI) makes decisions about who has the right to visit or stay in the UK. Responsibilities include running the UK s visa service (managing millions of applications a year), considering application for British citizenship, running the UK s asylum service, and managing appeals from unsuccessful applicants. Immigration Enforcement is responsible for preventing abuse of the system, tracking immigration offenders and increasing compliance with immigration law. It works with partners such as the police to regulate migration in line with government policy. Whilst some asylum cases are dealt with before entry to the UK, a large number of cases are dealt with within the UK. From the multiple entry points into the UK for migrants, there are a number of routes that an asylum seeker can go down, as the diagram below demonstrates

7 Immigration detention The UK s immigration detention estate is one of the largest in Europe, comprising 11 Immigration Removal Centre and 5 Short Term Holding Facilities. From 2009 until 2015, between 2,000 and 3,500 migrants have been in detention at any given time. In 2014 the estimated average cost of detention was 97 per person per day 9. The reasons why a migrant may be held in detention include to effect removal; to establish a person s identity or basis of claim; where there is a reason to believe that the person will fail to comply with any conditions attached to the grant of temporary admission or release; where there is a risk of harm to the migrant or the public; and as part of the detained fast-track system (where asylum seekers can be detained if the Home Office officials believe that a quick decision can be made on their case). Accommodation for asylum seekers and migrants If asylum seekers are not detained, the Home Office has an obligation under the Immigration and Asylum Act 1999 to provide accommodation for them and their families while their cases are being processed, including transport to the accommodation. In March 2012, the Department signed six new contracts for provision of these services, collectively called COMPASS (Commercial and Operating Managers Procuring Asylum Support). The Department also provides financial support for essentials such as food and clothing. Asylum seekers are not allowed to work or claim mainstream welfare benefits. The Department is currently consulting on reforming support for failed asylum seekers. As of March 2015, the Department provided support to an estimated 20,400 asylum seekers whose asylum claim has yet to be determined, and who would otherwise be destitute, and around 15,000 failed asylum seekers and their dependents. Support services for the former group cost an estimated 100 million in Services for the latter group cost an estimated 73 million in the same year. 10 Deportation The commonly used term, deportation, refers to the state-enforced or enforceable departure of a non-citizen from the country. Within this term, there are actually three main types of departure: deportations, administrative removals and voluntary departures Deportation applies to people (and their dependents) whose removal from the country is deemed conducive to the public good by the Secretary of State, or when recommended by a court in conjunction with conviction of a criminal offence punishable by a prison term. - Administrative removal applies to a larger set of cases involving the enforced removal of noncitizens who had entered the country illegally or deceptively, or stayed in the country longer than their visa permitted, or otherwise violated the conditions of their leave to remain in the UK. In , there were an estimated 12,498 enforced removals. 12 A subset of those removed administratively is made up of individuals refused entry at port and subsequently removed. - Voluntary departures involve people against whom enforced removal has been initiated. Some depart by official Assisted Voluntary Return schemes, others make travel arrangements and notify Border Force, or approach Border Force for help with arrangements. A final group departs without notifying Border Force, but can sometimes be confirmed through data-matching on the Home Office s systems. 13 For , the number of voluntary departures is estimated at 29, sylum_seekers_and_other_illegal_migrants_-_consultation_document.pdf